Tax Loss Selling...
Posted: Friday Dec 14 10:39:25PM 2012
My list of tax loss candidates is really just a list of beatup miners. The sector has been tortured all year by risk aversion, worry about China's economy and low profits from big miners.
Here is my list of miners that I think should be much higher.
AUN.v Recently announced they have begun commercial production at their Shafter silver mine in Texas. This mine will vault Aurcana into the mid tier of silver producers and over 5 million oz for 2013. There is always doubt when a mine is in startup but Aurcana is already profitable from their La Negra mine and it's expanding too. I think Aurcana will be C$2 by late 2013
BRD.to Brigus has struggled to hit production goals since Apollo started mining here several years ago. Brigus came in, took over Apollo and has done a better job but still not great. The area around the Black Fox mine has other prospects that will become mines so I think Brigus is a good candidate for future appreciation and they are getting a handle on how to produce at Black Fox.
CSI.to Colossus is building a mine in Brazil that has incredibly high grades of gold, silver, platinum and palladium. The veins are sometimes narrow and the rock is not stable underground so mining here will require some trial and error. But the grades are phenomenal and there are very few producing platinum/palladium mines. Big selloff in November but by late 2013, this should be a double/triple
EDV.to Endeavour morphed from a financier for mining companies into a gold miner of substantial size. They bought Avion Gold and are now a 400,000oz producer with another mine being built. They have cash, solid production and good prospects going forward. Not being given full credit due to political turmoil in West Africa but these guys have been in Africa for a long time and should be able to negotiate around it.
ORV.to Tried to start two mines at once. It didn't work. They are finally getting both mines on track and producing but had to finance a couple extra times to cover the production shortfalls. Should now produce close to projections with very low gold costs due to byproduct credits for base metals in Spain.
SSL.v/SAND Sandstorm Gold is a younger version of SLW. Former CFO of SLW is the founder of Sandstorm. They have royalties from several smaller gold producers and explorers. Should start to ramp up production at low costs. This is a jockey play and a low risk way to play gold.
Posted: Thursday Dec 13 9:04:38AM 2012
TSX Venture getting hit again today. The next week will likely be the height of tax loss selling as people are getting desperate now. Things looking ugly for beaten up small-caps. Good time to buy??? ... probably not a good time to still be looking for sales...
Posted: Tuesday Dec 11 7:34:33PM 2012
NCI (NTG clarity)is trading at a year low. Still profitable.
ALX in the energy field is trading just above 1x cash flow.
MCR is not a tax loss candidate given it has tripled this year but still trading around 2-3 x earnings.
Posted: Tuesday Dec 11 12:22:12PM 2012
Interesting poll out today on Stockhouse. "The poll which ran from Dec. 4th to Dec. 10th indicates that nearly a quarter of
investors are still selling stock at a loss to offset gains in their other investments in 2012. However, over half did no Tax Loss Selling this year and 22% are finished their Tax Loss Selling for 2012."
Posted: Tuesday Dec 11 11:10:16AM 2012
What are some favourite purchases for tax loss selling out there right now? Small-cap stocks have been getting hit hard, down 7 of the last 10 days. Last day for tax loss selling is Dec 24th.
I could name just about any junior mining company but it's imperative to look at the balance sheet and cash balances as raising money right now is the kiss of death for many.
Oil and gas service stocks have been doing very well financially but aren't getting any love in the marketplace. A few to look at are DAL, TAL, FSI.
Mining companies I'm watching HDA and ORV.
Industrials AM, OML, VFX.
There are some others that I'm accumulating and some other core holdings but I'm looking forward to some other suggestions.