Tuesday, December 1, 2009
Tax Loss Presents
As much as the markets are flying high, not all stocks are following suit due to various reasons in their development cycle. Thus they can be victim of the notorius tax loss selling season and provide some true gifts to the nimble investor.
Those who are impatient sell and take the loss/gain or just need the bucks to pay for Christmas. They're also selling with the intention/hope to buy them back after the 30 day selling rule for the same price or less. I look for stocks that won't be on sale long and the New Year will bring news flow to their sectors, primarily the precious metals sector and the junior tech/biotechs that meet my criteria.
Below is a list of stocks that "may" be in a position in the next 30 days to pick up on sale and make a nice present for one's portfolio.
Note: I may or may not own shares of these companies and may trade in and out so please don't take my list as investment advice and do your own DD as I am not responsible for any of your decisions, they are yours alone.
#1 AHC - Artha Resources, naturally my number one favorite precious metals stock. Not sure how much cheaper it will be getting in here as today there was some true gifts in the 16 range. I see stocks with less trading for 2-3 times right now so this is a steal where it is.
#2 EMG - EmerGeo Solutions has already been on sale the last few months but I expect better things in the New Year. Yesterday their financials came out with a 100% revenue increase to over $1 million for the quarter and margins rising to 36%. A specialty emergency disaster software company with explosive potential for 2010, it's been a long time coming.
#3 CA - accumulating land in Colombia near VEN but a bit expensive for where it is in it's exploration cycle. I would be buying in the low 30's,can trade a little thin so use the stink bid.
#4 TNG - software gaming deal with Intel, say no more. Anything back in the 70's would be a deal.
#5 PRX - a prostate drug for those dudes with BPH. I am hearing good things on this one and looks like it could be big if the next results prove up. Bio's are always highly risky but they seem to on the right path. Anything back to the upper 50's to low 60's would be a good spot to focus on.
Don't forget to use the major markets as your guide before diving in,they can be a bigger cause of selling than just for tax loss reasons.
Happy shopping !
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