At the end of the year, I take a look at stocks that could see a pile-on effect of tax loss selling
and lowered earnings estimates.
Ask potential managers if they are willing to work with you to do tax loss selling
in individual client accounts.
Tax loss selling
also has been significant this year, the first year since the 1990 bear market that investors have had significant losses they could use for income tax purposes by simply selling their losers.
It is believed that tax loss selling
by mutual funds was, therefore, vigorous and often at fire-sale prices as funds managers raced to minimize realized gains before closing the books in October.
The flipping of the calendar year brings tax loss selling
, "Santa Claus" rallies, and the "January Effect.
That means, that this stock, while likely to see some tax loss selling
in the next week or so, should actually be held.
In the December recommendation, The Acker Letter stated , "Alpha Pro Tech's stock price appears to be more reflective of recent market uneasiness and tax loss selling
than of the Company's recent bottom line performance and anticipated growth.
With much of the Company's stock that's currently being sold into the market being tax loss selling
, desperation selling, and stock that was issued for services that were never performed or underperformed, it's caused undue pressure on our market price.
The way the group should evolve would be most making lows coincident with the stock market (final margin selling) and even the heavy tax loss selling
due in November-early December won't take them back to October lows.
NYSE Amex: ANX), "ADVENTRX seems to be bouncing back from year-end tax loss selling
and it seems investors are focused on the initiation of two Phase 3 trials scheduled to begin this year.
In a recent edition of their morning stock market report (dated 10/23/98), the company provided helpful information to its members and trial members on how tax loss selling
strategies may help save you money.
Levi also noted that "although it is our policy not to comment on our stock price, the company has observed a significant decrease in the company's stock price during the past few weeks and does not know of any reasons for this decline other than concerns over the retail business in general or possible tax loss selling
of the stock prior to year end.