| With a whole universe of jettisoned bombed out stocks will the 02 tax loss season be the Mutha? This forum is looking for ideas to exploit this theme as we approach mutual fund tax loss selling (through October), and individual tax loss selling through Dec. There are also indications that market makers and specialists are not making a market in these stocks, witness the numerous 5% swings up and down on tiny volume. The focus will be on the inefficient pricing afforded by such artificial selling. Candidates should be quality companies under $1 billion market cap (and thus off the institutional radar screen). Under $5 stocks might also be prime, as they come off margin eligibilty and face more artifical selling. Leveraged debt laden companies are fair game, but we are looking for survivors, with strong underlying balance sheets a plus. Timing tools can be discussed as well. |
