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Get Four
|  | DECEMBER 23, 2004
 STOCK SCREENS By Michael Kaye, CFA Shedding Losers with No Regrets For investors considering tax-loss selling, S&P compiles a list of stocks that tumbled in 2004 -- and are likely to keep underperforming The yearend's approach can bring with it a wave of tax-loss selling, as we discussed in an earlier column (see BW Online, 12/02/04, "Shopping for Gains in December"). That's where investors who are holding stocks that have posted losses for the year can sell them to realize tax benefits. The U.S. tax code allows capital losses realized on the sale of securities to be used to offset capital gains. While our previous screen listed stocks that had posted solid gains in 2004 -- and were thus unlikely to be swept up in the tax-loss tornado -- this time around we've decided to offer some help to those investors who have decided to cut and run. And if you're going to sell a loser, it would be comforting to know that its prospects for a rebound were limited. UNLUCKY FEW. With that in mind, we designed this week's screen. We sifted for those stocks that have declined more than 40% this year (through Dec. 20). Then to make sure that investors wouldn't likely regret selling them, we looked for those stocks ranked 1 STARS (strong sell) or 2 STARS (sell) by S&P equity analysts. Stocks with those designations are expected to underperform the overall market over the next 6 to 12 months. Here's the unlucky few that our search uncovered:
 Kaye is an analyst for Standard & Poor's Portfolio Advisors All of the views expressed in this research report accurately reflect the research analyst's personal views regarding any and all of the subject securities or issuers. No part of analyst compensation was, is or will be, directly or indirectly related to the specific recommendations or views expressed in this research report. Standard & Poor's Regulatory Disclosure Any advice, analysis, or recommendations contained in articles labeled "Insight from Standard & Poor's" reflect the views of Standard & Poor's, which operates separately from and independently of BusinessWeek Online. It is possible that BWOL may from time to time publish information that is not consistent with advice, analysis, or recommendations that are published by Standard & Poor's. Standard & Poor's and BusinessWeek Online are each units of The McGraw-Hill Companies, Inc.
BW MALL
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