Tax Loss Selling/Year-End Bounce

An investor sells an asset with a capital loss in order to lower or eliminate the capital gain realized by other investments

ARTICLES

Purchase Recommendation - January 2019

This services company has an unusual niche in the energy and mining industries.

Weak oil prices, some relatively minor operating issues and highly risk-averse year-end investor sentiment has pushed its shares to near-record lows. Yet the company’s business is more durable than it might appear, the management continues to improve its operations, and it is generating positive operating free cash flow. While its shares carry significant risk, we believe the considerable return potential more than offsets the risks.


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Who wants to buy stocks right now? Nobody.

Successful investing involves a tolerance for risk and patience. The market has neither right now.
At best, the broad stock market’s 15.8% drop since its peak only three months ago on September 20 has been disconcerting. The deeper 23% plunge in small cap stocks, as measured by the Russell 2000 index: startling. For the weakest 9% of S&P500 stocks – often those with some type of unfavorable macro exposure – their average loss of 40% in such a brief time has been simply jaw-dropping.
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Apres nous, le deluge!

YEAR-END TRADING OPPORTUNITIES FOR BARGAIN HUNTERS

With apologies to Madame de Pompadour after her king’s setback in the Battle of Rossbach in 1757, the unfortunate turn of more recent events in the stock market could be creating at least a modest flood of opportunity for contrarian investors.  This may be particularly true as we approach the year's end, when artificial selling pressure, created by investors tossing their losers, offers some unusual short-term bargains.  Here at The Turnaround Letter, even we can be tempted (briefly!) to set aside our intense focus on long-term business fundamentals and underlying valuations when shorter-term bargains appear.
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Top 10 Year-End Bounce Stocks

Bargain-Hunting Season Is Here Again

It’s that time of the year--when shoppers search their favorite websites and local shopping malls for holiday savings, and savvy investors look for year-end discounts in the stock market. Here at The Turnaround Letter, even we can be tempted to briefly set aside our intense focus on long-term business fundamentals and underlying valuations when artificial selling pressure, created by investors tossing their losers, offers some unusual short-term opportunities at year-end.
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Read on for these three important portfolio updates.

News Notes & Updates - January 2017

Buy limit raised on two value stocks from our current portfolio--and another important update as a result of this recent high-profile spin off.
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Risks to the markets may increase in 2017: Investors should always prepare for stock market volatility.

Looking Back at 2016 and Ahead to 2017

The market’s previous assumptions about the U.S. economy--sluggish growth, rising government regulation, near-zero interest rates--seem to have reversed overnight with the election of Donald Trump. We think the changes run deeper. Households and companies are starting to move past the financial crisis, which peaked eight years ago. Demand is picking up.  With it, there is a good chance that the deflationary environment is shifting back toward inflation. Trump’s election could further boost growth through more government spending and fewer regulations. Risks to the markets may increase in 2017, and investors prepared for volatility can better hold firm when it arrives.
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7 Year-End Bounce Value Stock Picks

December is Bargain Hunting Time

It’s that time of the year again--bargain hunting season. Holiday shoppers flock to the malls and their favorite websites, and savvy investors search the stock market for year-end discounts. While our approach at The Turnaround Letter is heavily focused on long-term business fundamentals and underlying valuations, even we can be tempted by unusual short-term opportunities at year-end created by artificial selling pressure as investors toss their losers.
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Identify & Profit from Distressed Investing

Free Report: Turnaround Investing Mistakes

Turnaround Investing Blog

Turnaround Investing Blog

Who wants to buy stocks right now? Nobody.

At best, the broad stock market’s 15.8% drop since its peak only three months ago on September 20 has been disconcerting. The deeper 23% plunge in small cap stocks, as measured by the Russell 2000 index: startling. For the weakest 9% of S&P500 stocks – often those with some type of unfavorable macro exposure – their average loss of 40% in such a brief time has been simply jaw-dropping. Read More.

EV/EBITDA: What Is It & Why Are We Using It More?

In reading recent editions of The Turnaround Letter, you have probably noticed that we are increasingly using EV/EBITDA as a valuation measure, rather than the better-known price/earnings multiple.  We thought it might be useful to describe this measure and why we like it.

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Turnaround Letter Stock Pick Named Top Performer of 2017

 

stock market advicex

 

What Last Year's Top Stock Pickers Are Buying in 2018

 

This Forbes write-up follows up on the recent Top Stock Tips report--naming The Turnaround Letter's Crocs recommendation the top performer of 2017: With 90% gains, CROX beat out 100 other investment ideas included in the report; and the stock continues to have value investing appeal, according to Putnam.

 

George notes, "We see additional upside for the stock in 2018 as management's efforts continue to bear fruit, though the gains will likely be more muted than we saw in 2017."