Are these tax loss stocks in the bargain bin?

As Canadian markets reopen for the first day since the end of tax loss selling season, our portfolio manager Steve Vannatta put together a couple of screens to see who the losers were in 2015 and particularly those stocks that were hurt in the month of December, as investors decided to lock in their tax losses for the year.

We excluded energy from each of our screens, as the carnage in that space would have dominated any tax loss list.

Some energy related names snuck onto our screens, including shipping companies and energy related companies.

Here’s what we were looking for…

Screen #1:

  • North American Equities
  • Jan 1 2015 to Dec 1 2015 – Stocks Down 17% or more
  • From December 1 to December 24th – Stocks down an additional 20% or more
  • Minimum Market Cap – $100mm USD
  • Companies with positive net earnings

Screen #2:

  • North American Equities
  • Down more than 20% from Dec 1 to Dec 24
  • Market Cap Greater than $100 mm
  • Companies with positive net earnings

There are a number of companies in these lists who have definitely been impacted by the decline in oil prices, however there are also a number of diverse businesses who may upon further inspection, provide some opportunities for investors.

PLEASE DO YOUR OWN RESEARCH.  THESE ARE NOT STOCK RECOMMENTATIONS. These are simply list showing the price decline of stocks over the defined periods above.

Steve Vannatta is lead Portfolio Manager of the Redwood Floating Rate Preferred Fund and the Redwood Diversified Equity Fund.

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