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Technology Stocks : Orbital Engine (OE) -- Ignore unavailable to you. Want to Upgrade?

To: John M Connolly who wrote (3665)	12/28/1998 4:36:00 PM
From: Keith Fauci	Respond to of 4908

Tax loss selling in this security will probably be a large % of sales over the next week. I know I have considered it! If it were not in my IRA, it would be gone for at least 31 days.

To: John M Connolly who wrote (3665)	12/28/1998 6:03:00 PM
From: PIERRE HANDL	Read Replies (2) \| Respond to of 4908

In the past, tax loss occurred on settlement day, five business days after the trade date. Today, tax loss can be realized on December 31. Ideally, realized tax selling should occur 30 days before the first trading day in January. This is assuming the stock is trending down or sideways. If you have a rally in the stock during the 30 days, you may have to buy back in at a higher price. Also, because people can only shelter $.50 of ordinary income with each one dollar in loses, the tax selling on an issue can be more pronounced. There is also the theory to realize your loses now, 98 tax year, and defer gains to next year. This should put people on notice that if they hold stock that has had significant gains into the close of the tax period, a near term price correction can occur caused by profit takers that avoided taking profits earlier. So the trading environment can be very volatile at year end because of the many cross currents in this market where so many individuals are playing along side institutions.