Tax loss selling has kept DYP under pressure, but that all ends in about 4 weeks. Buy and hold DYP for a big rally in January.
We may also have the auditor news by then which will help alot and many who have been selling for tax loss deductions will be buying back in January as well.
supercuts+sounds like super cheap !! is that true?
Only from CEP i made 113 000 usd profit in few months...nothing has to say...responding to men who works at barber shop is waste of time for me...!! period...go back to work barber !!
Tax loss selling clearly happens, but the point is that it is unlikely that on a pissant chinese stock with a small float- that the impact you are predicting is that relevant. You are way too confident of its impact when other factors will have significantly more impact- the stock dropped 50% and most people sold then who were going to sell because they lost their shirts. A very small portion of investors that are left are likely to play this like you said because there are not that many people and they are holding on for a more significant reason- you are making a mountain out of a mole hill on this one- nice try.
I think tax loss selling is irrelevant related to DYP. Why would anyone sell DYP to capture the loss on their 2010 taxes and limit themselves from buying it back for 30 days? Selling for the tax loss would mean risking the accounting issues are resolved within the next 30 days and loosing the upside potential.
I'm considering tax gain selling... Sell for taking a small profit on my 2010 taxes and purchase the next day to maintain my position for the "big gain" when the accounting issues are resolved.
You could say that about any stock that is down hard, why would someone sell in case they resolve their issues within the 30 days before it can be bought back, but people still do it. Also, I am not saying everyone is going to buy back the shares, I am saying many people are selling DYP at this time of year for tax reasons and that will end by Jan. The point is there will be less people selling DYP shares in Janu which means less supply at these price. Less supply of shares being sold means higher prices. BASIC.
Here is a refresher course in the January effect regarding tax loss selling for those here that need it, this article just came out yesterday:
Absolutely wrong again, I do not make the assumption "the price had dropped (or is stagnating) due to tax-loss sales". That is a truly stupid assumption on your part.
I know why the price dropped and it did not drop over 50% for tax loss sales, obviously it dropped due to auditor, etc related issues!!!!!
If you can't understand that tax loss selling occurs in stocks that have lost value in that given tax year then you should not be posting or investing.
This is real simple but you simpletons can't grasp the concept. What I am stating is that in January, whatever tax loss selling is occcuring in DYP in December will be gone. Plenty of individuals and FUNDS have sold this to get it out of their portfolio and harvest tax benefits. Funds also don't want losing stocks in their year end report.
Like I said you might understand this concept better if you had more experience, but you can just wait until Jan when you will see this clear $3.
you make the assumtion the price had dropped (or is stagnating) due to tax-loss sales, and when that stops (all other things being equal) the stock will then pop... Wow, if you're not the true novice then you sure do think as one.
Bottom Line: If the books aren't thoroughly cooked we might be ok... if they are, then the bottom falls out. It's common sense if not manipulated when the news hits what will happen here.
Wow we have a couple guys here that don't understand the seasonal pressure most stocks that have dropped significantly in value have in the last few weeks of the year.
You guys must be a novice investors if you are unfamiliar with this concept. Please Google "tax loss selling" and educate yourselves before posting nonsense. It's a real basic concept that has NOTHING to do with the float. You also miss the fact that people don't even have to buy this back for the stock to pop in Jan because some people are selling this now for the tax loss before the year ends, and in January NOBODY will be selling DYP for 2010 tax loss deductions and that alone will alleviate selling pressure that exists now. GET IT?????
I'll see you guys in January when this is trading over $3.
You are absolutely wrong. The auditor issue is one thing, the FACT that people sell stock that have lost them money is ENTIRELY different. There ABSOLUTELY are people selling DYP to harvest losses so they can offset ones they had gains on. With the big decline DYP has had this year, plenty of selling is due to tax loss issues.
Many people who sold out to get the tax losses will be buying back in 30 days or first thing next year.
My point is by Jan, the tax loss selling is OVER, and probably we have an auditor appointed by then also.
Trust me, DYP will be substantially higher than $2.75 in the first to weeks of Jan.