Over the next week, many investors will be pondering what laggards to expunge from their portfolio to crystallise tax losses before June 30. And while emotion should play no part in investing, there’s nothing more satisfying than ejecting EOFY portfolio duds with extreme prejudice.

One widely-held candidate for this year’s ‘taking out the trash’ is Domino’s Pizza Enterprises (ASX:DMP), as we may have reached peak pizza.

Dominos has been an eternal growth story but last week delivered news of a profit downgrade, store closures and the holus-bolus retreat from its acquired Danish operation.

The measures will drag down this year’s earnings, with the promise of ongoing benefits. Still, management reports that weekly order counts – that is, patronage – is sluggish. While we would never write off Domino’s, there’s a hint of growth indigestion.

Year on year, the shares are 31 per cent off the pace and have lost 43 per cent of their value since late January.

Star Entertainment (ASX:SGR) shares have shed 56 per cent of their value over the past year and 77 per cent over five years.

The gambling den operator is battling regulatory problems pertaining to money laundering and faces an additional tax hit. Balance sheet concerns persist despite the $800 million capital raising which was meant to fix the problem.

Arguably, Star’s valuation is at rock bottom, given its net assets (mainly property) of $2.7 billion relative to its $1.7bn market valuation. Trading conditions at its Queensland casinos are also improving, but there’s still a good case for throwing in one’s hand.

Still on gaming, Pointsbet (ASX:PBH) shares have declined by more than one-third over the year and have shed 89 per cent of their peak early 2021 value. The bookmaker’s costly US sports betting expansion dream is in tatters, but the company is fielding two offers for its US business and may yet sell its Australian operation for a decent price.

Still, it’s a flip of a coin as to whether there’s enough upside to justify hanging on.

The discretionary retailing sector has been resilient, but casualties are mounting. The EOFY prize for the The Biggest Loser goes to plus-sized clothier City Chic Collective (ASX:CCX), with an 83 per cent share decline amid bloated stock levels and subdued trading in both its local and US operations.

Other knocked-down retailers include Baby Bunting Group (ASX:BBN, down 68 per cent) and smelly candle purveyor Dusk Group (ASX:DSK, down 50 per cent).

In the resources sector, West Perth promoters continue to push the ‘stronger for longer’ theme of critical minerals: anything linked to the EV and renewables revolution, especially lithium.

But that hasn’t stopped shares in graphite producer Syrah Resources (ASX:SYR) declining 25 per cent over the last year, or leading rare earths producer Lynas Corp (ASX:LYC) eroding 14 per cent.

Shares in nickel producer Panoramic Resources (ASX:PAN) are 52 per cent off the pace.

The operative word here is producer. Investors are notorious for ascribing more value to blue-sky speculative plays and punish the miners exposed to the realities of soaring costs and fickle commodity prices.

Finally, tech stocks were savagely sold down in calendar 2022, but the last six months have been kinder and many have rebounded strongly.

Tech plays yet to rediscover their mojo include Dubber (ASX:DUB, down 65 per cent), Whispir (ASX:WSP, down 66 per cent), Appen (ASX:APX, down 50 per cent) and EML Payments (ASX:EML, down 55 per cent).

We’re assuming that investors need some losses to offset some decent gains, with the overall bourse looking like ending the year around 10 per cent higher despite this week’s jitters.

This story does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

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