which is down 50% or more this year which has shown a positive up trend in the past few weeks? Many investors will wait untill the last second to take a tax loss, they still hope that they can get a little higher price before departing with a poor investment.
AAPL COMS ELNK all trade within a point or so of cash value but can't get any traction in this market. I believe that the reason they can't get any traction is that many investors hold these stocks at much higher entry pionts. On this board alone I see investors state that they purchased this stock in the 30s and 40s. If they held it this long they certainly didn't use a stop loss or some predetermined sell level, they just held on.
We are now comming down to the wire for tax time and many of these investors will sell to offset other taxable gains(if any) or just to take the $3000 taxable loss. I think many of these investors will sell their entire position and carryover the tax loss in excess of 3000 to future years. Some of the recent posts on this board you can see the frustration in the four letter language. Thee people will sell in the next two weeks just to releve themselves of the pain they have endored this past year, no matter how good the prospects are for this company in the near future. They just want to get out.
If the market were to rally 500 points next week I don't believe that ELNK or many other beatendown stocks will participate. We will, at best just tread water until the new year when the tax selling, and the selling from those who just can't take it any more ends.
I think January will bring a new life to some of these oversold companies and then the market will realise the underlying value of these firms.