December Tax-loss Selling (Buy List)

Discussion in 'Stocks' started by joezapp, Dec 14, 2007.

  1. joezapp


    Hi! It's tax-loss selling time again, and that means it's time to buy those stocks that are really getting beaten down for tax losses. Think GM in December '05. Even Captain Kirk got into the game! Now this year, there are many in the retail, financials, insurance, and REIT space. I've already jumped on MET, JCP, JOSB, KEY, CMA, WB, VNQ, AIG to name a few. I expect all to be big winners.

    So let's get the discussion rolling! We're looking for good stocks 1)that are down on the year, 2)that are now going through even more downside pressure as investors take losses to offset other gains, and 3)that are likely to bounce once the new year gets underway. Closed-end funds are notorious for this phenomenon as well.

    So go ahead. Don't be shy. Fire away!
  2. Thanks for those ideas. One I will add is HW. This stock has been beaten down hard because they are losing tax credits in '08 for coal processing and because one of their segments make building materials. However, it is trading at about 9 to 10 times estimated earnings, which estimates figure in all the bad news. And, they have several promising new technologies, any one of which would send the price soaring if and when it pays off. The short ratio is very large and some good news could create a squeeze. Jeffery Gendell holds 5%.

    full disclosure, yes I am long on this one.
  3. good luck. you're buying these stocks just as the mother of all bear markets is just starting. wb will be $15 before it all ends. look at hd as its down 60% for 9 years ago. ge down 55% from 9 years ago. things can stay down for a decade are more
  4. dsq


    aig:for what its worth jim rogers says insurance co.s are next to get walloped like banks...they are well vested in all that mortgage nonsense.

    Bear markets generally dont start when they are trading at historically lo pe's of 13-15 like they are now...but who knows?earnings seem to be slowing and growth not great here in the usa...
  5. joezapp


    True, this may not the bottom. But it could be close. An entry point at tax-loss selling time gives you the opportunity to cash in on the January bounce, or hold at the artificially low current price that tax-loss selling creates.

    They don't ring a bell at the bottom. At some point, it's time to open positions. If they go down further, I'll wait it out and collect the dividends, and if they go down a lot, I'll add to the position. We're not talking about dot coms with no earnings here. For the record in terms of WB, there has been heavy insider buying there.

    As far as the bear market, I agree that this bull is on very shaky ground. But history also tells us that bears don't happen when interest rates are falling. However, fortunes are lost, and MADE, in bear markets. With cash on the sidelines, I'd welcome a bear right about now. Good luck.