So far, my tax lost sales recovery strategy is working great

Two months since its inception, “mine”Portfolio recovers to sell at a loss in 2023 benefited from a solid January that has delivered positive returns. About 2.8% off since my Jan 6 update, as of Thursday, the portfolio was up 17.2%. The market rally certainly helped.

The idea behind this annual pursuit is to determine potential The cheap names have plummeted in the previous year and may even be pushed lower at the end of the year, as investors book losses for tax purposes, but could recover in the new year if selling pressure eases reduce. The target was to outperform the S&P 500 and Russell 2000 indexes, and I took the positions of all of them.

Here are the criteria for stock inclusion:

  • They must be at least 30% off from the beginning of the year to now

  • They must have a forward price-to-earnings (P/E) ratio of less than 15 for the next two fiscal years

  • Their minimum market cap should be $100 million

1st, which was released on November 28, rose 25%, outperforming the S&P 500 (up 3.7%) and the Russell 2000 (up 7.7%). This is the biggest and most famous batch. Superman (META) (up 70%) was the best performer and rose 23% on Thursday following the announcement of fourth-quarter earnings, which revealed a $40 billion stock buyback program. Shares of eBay (EBAY) increased 12%, Qualcomm (QCOM) 11% and Ford (F) 3% — yes, it’s all going into positive territory.

Phase 2, which was released on November 30, rose 9.2%, beating both the S&P 500 (up 5.4%) and the Russell 2000 (up 7.4%). Hanesbrands (HBI) (down 4%) from hero to goat (and not in the Tom Brady way), after hitting 28% on Thursday. The company missed a penny in earnings estimates, but downgraded its guidance for the first quarter and scrapped the dividend. Supreme Global (PARA) , however, increased by 30% and Kohl’s (KSS) increased by 7%. Both have solid months, while MarineMax (HZO) is up 3% and treading water.

3rd round, which was released on December 2, was up 17.4%, outperforming the S&P 500 (up 2.5%) and the Russell 2000 (up 6.3%). Wolverine Global (WWW) was up 46% in the boom month — it’s up 50% since the last update with almost no news. Brand Newell (MNDBT) increased by 29%. What a solid month! Classic wine district (VWE) , however, fell 16% and continued to draw air. VWE is currently the worst performer; is expected to announce second-quarter earnings after the market close next Thursday; consensus is calling for earnings per share of 11 cents. Elanco Veterinary (ELAN) increased by 11%.

What a difference in a month, but still early.

(Ford is a holding company in Action Alerts PLUS Membership Club. Want to be warned before AAP buys or sells these and others? Learn more now.)

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