Tax loss selling - good pointsFrom SH today - JMHO but AUN would be high on the hit list for those that bought near the top in March/April plus any company that has 'zinc/lead' in their list of products is getting a double wammy regardless of cash flow, etc. - yikes, look at BWR. Like many, I can't believe AUN is now below what I paid just over a year ago - applied the simple strategy of selling half near the high, adding more when just over a buck looked cheap. Question is, where does one see AUN trading at in 30 - 60 days? Are the sub-prime, base metal prices black clouds going to keep a lid on the potential of companies like AUN and the whole sector in general? What are the catalysts that may move the markets, climb in gold price spring 2006 then sharp drop, uranium fever in October then moly-mania March 2007, sub-prime crash in August and fantastic re-bound. Even the swings in the POG are not making a huge impact right now. Will 'sell in May and go away' work in 2008 like it did for many this year?
Hey, Hi pilk111 - need to find another CGC.
PS re backed-up labs - yep they are backed up making $$$ like crazy, attended ACME Labs Xmas dinner party last Friday. Over 30 client companies invited and all had the same complaint - sheesh - never seen so many geologists in one room!
"December is when many funds send out their year-end statements. Many of the institutional guys will dump their less-than-stellar investment choices in December to make it look like their funds contain only stellar investment choices.
The prime candidates for tax loss selling are stocks that are currently trading at about a 50% discount to their 2007 highs. I suspect that we’ve been seeing lot of tax loss selling in the uranium sector this tax loss season.
Remember this spring’s uranimania? Millions of investors flocked to the latest “sure bet” in the market. For the legions of investors who got to the party late in June, the balance of 2007 has been nothing but a disappointment. I for one am not surprised to see my quality uranium investments become the victims of tax loss selling.
Tax loss selling shouldn't supersede sound investment practices. When considering a tax loss harvest I ask myself some questions first. Am I sure the security isn't going to bounce back? Would I buy this stock at today’s price? If I answer no and yes respectively, I stay long.
And hey, sometimes it's ok to pay the tax man his taxes. One of the investing mistakes that I have made was that I stood on the sidelines for 30 days while the stock I sold jumped 80% in value. This was a clear case of “sometimes it’s ok to pay the tax man his taxes.” The gains that I would have realized by staying long far outweighed the advantages of taking the loss for personal income tax purposes.
Whether you choose to use tax loss selling or not, I recommend talking to a professional when it comes to taxes. Get yourself a professional tax advisor to help formulate a tax strategy that suits you and your family’s particular needs. If you choose to harvest some tax losses, you need to act soon, 2008 is just around the corner."