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:
Six ways to cut your losses
S&P STARS Rank
American Italian Pasta
Advanced Energy Industries
Kulicke & Soffa Industries
99 Cents Only Stores
Kaye is an analyst for Standard & Poor's Portfolio Advisors