Which stocks could be hit by tax loss selling as end of financial year looms?
Link copied to
With less than a month to go of the 2019-20 financial year, time is running out for share market investors to minimise their tax bill.
One way is by selling stocks investors have made a loss on and claiming them as an offset against any capital gains made. However, they cannot be directly claimed back in a similar way to tax-deductible expenses.
Of course, even if you do not have capital gains to claim losses against, you may want to “get out” to minimise losses before a selling spree begins.
How can you tell what stocks may fall victim to this? An easy target is small caps that have made the biggest losses in the financial year.
Here are the worst performing ASX small cap stocks this financial year (excluding recapitalised stocks):
Swipe or scroll to reveal the full table. Click headings to sort.
|Code||Name||Price 1 July 2019||Price 2 June 2020||% Return||Market Cap|
|GID||GI DYNAMICS INC-CDI||0.030||0.002||-93||3.66M|
|EXL||ELIXINOL GLOBAL LTD||3.86||0.240||-94||41.60M|
|HRR||HERON RESOURCES LTD||0.58||0.047||-92||20.15M|
|TGO||TRIMANTIUM GROWTHOPS LTD||0.520||0.045||-91||6.84M|
|ATS||AUSTRALIS OIL & GAS LTD||0.265||0.028||-89||28.59M|
|ANW||AUS TIN MINING LTD||0.009||0.001||-89||2.83M|
|PNC||PIONEER CREDIT LTD||2.600||0.290||-89||18.39M|
|CPH||CRESO PHARMA LTD||0.500||0.062||-86||17.13M|
|OEL||OTTO ENERGY LTD||0.047||0.007||-85||33.57M|
|ARQ||ARQ GROUP LTD||0.640||0.099||-85||11.97M|
|LNG||LIQUEFIED NATURAL GAS LTD||0.260||0.043||-83||24.80M|
|SW1||SWIFT MEDIA LTD||0.229||0.041||-83||17.62M|
|STM||SUNSTONE METALS LTD||0.040||0.007||-82||15.47M|
|LRS||LATIN RESOURCES LTD||0.022||0.004||-82||1.46M|
|OSP||OSPREY MEDICAL INC-CDI||0.075||0.014||-81||18.00M|
|ONE||ONEVIEW HEALTHCARE PLC-CDI||0.250||0.047||-81||8.14M|
|CGB||CANN GLOBAL LTD||0.037||0.007||-81||23.38M|
|E2E||EON NRG LTD||0.005||0.001||-80||769.89k|
|SWM||SEVEN WEST MEDIA LTD||0.455||0.102||-80||141.50M|
|ECT||ENVIRONMENTAL CLEAN TECHNOLOGIES||0.010||0.002||-79||19.20M|
|UUV||UUV AQUABOTIX LTD||0.007||0.002||-79||1.14M|
|HWH||HOUSTON WE HAVE LTD||0.150||0.032||-78||8.51M|
|A3D||AURORA LABS LTD||0.320||0.071||-78||8.33M|
|CFE||CAPE LAMBERT RESOURCES LTD||0.009||0.003||-78||3.10M|
|TYM||TYMLEZ GROUP LTD||0.152||0.043||-78||5.02M|
|DCG||DECMIL GROUP LTD||0.355||0.140||-77||33.36M|
|VOL||VICTORY OFFICES LTD||2.200||0.510||-77||20.86M|
|VR8||VANADIUM RESOURCES LTD||0.072||0.017||-76||6.36M|
|CXM||CENTREX METALS LTD||0.110||0.026||-76||8.21M|
|KAS||KASBAH RESOURCES LTD||0.050||0.012||-76||1.62M|
|MCM||MC MINING LTD||0.665||0.160||-76||22.57M|
|ABT||ABUNDANT PRODUCE LTD||0.065||0.016||-75||1.36M|
|FGO||FLAMINGO AI LTD||0.006||0.001||-75||1.68M|
|QFY||QUANTIFY TECHNOLOGY HOLDINGS||0.006||0.0015||-75||3.01M|
|TPS||THREAT PROTECT AUSTRALIA LTD||0.180||0.046||-75||10.84M|
|BMG||BMG RESOURCES LTD||0.012||0.003||-75||1.76M|
Some stocks on this list have witnessed problems specific to their companies.
For instance construction provider Decmil (ASX:DCG) made a $75 million half yearly loss after money stopped flowing from a couple of clients.
X-ray dye reduction tech stock Osprey Medical (ASX:OSP) has been bleeding cash while struggling to make money from its technology.
Others are in industries that have been decimated pre-COVID-19. For example, semiconductor makers globally struggled throughout 2019 due to the US-China trade war and have been further hit by factory shut downs.
BluGlass (ASX:BLG) is one such stock, down 82 per cent in the last 11 months.
While oil prices are recovering from the brief plunge into negative territory, they are still below levels seen prior to 2019, impacting small caps such as Liquified Natural Gas (ASX:LNG) and Otto Energy (ASX:OEL).
While the above list of stocks are the most extreme losses, almost all stocks plunged between late February and late March as markets came to terms with the COVID-19 disruption.
Many stocks have been on the rise again but others have failed to regain ground. 34 stocks are still sitting at least 60 per cent below their February 20 price, despite the market climbing for 2 months.
|Code||Name||Price 20 Feb||Price 2 June||% Return||Market Cap|
|PNC||PIONEER CREDIT LTD||1.730||0.290||-83||18.39M|
|GID||GI DYNAMICS INC-CDI||0.010||0.002||-80||3.66M|
|88E||88 ENERGY LTD||0.024||0.006||-75||42.66M|
|OEL||OTTO ENERGY LTD||0.027||0.007||-74||33.57M|
|OOO||BETASHARES CRUDE OIL||13.720||3.670||-73||240.59M|
|ALG||ARDENT LEISURE GROUP LTD||1.355||0.435||-69||201.48M|
|LNG||LIQUEFIED NATURAL GAS LTD||0.135||0.043||-68||24.80M|
|VOL||VICTORY OFFICES LTD||1.600||0.510||-68||20.86M|
|TPS||THREAT PROTECT AUSTRALIA LTD||0.140||0.046||-68||10.84M|
|A3D||AURORA LABS LTD||0.220||0.071||-68||8.33M|
|E2E||EON NRG LTD||0.003||0.001||-67||769.89k|
|CFE||CAPE LAMBERT RESOURCES LTD||0.006||0.003||-67||3.10M|
|LIN||LINDIAN RESOURCES LTD||0.035||0.013||-66||6.98M|
|ONE||ONEVIEW HEALTHCARE PLC-CDI||0.135||0.047||-65||8.14M|
|MCM||MC MINING LTD||0.450||0.160||-64||22.57M|
|CBY||CANTERBURY RESOURCES LTD||0.210||0.081||-64||6.64M|
|ARN||ALDORO RESOURCES LTD||0.230||0.087||-62||1.88M|
|LHM||LAND & HOMES GROUP LTD||0.013||0.005||-62||10.81M|
|NOR||NORWOOD SYSTEMS LTD||0.065||0.025||-62||5.25M|
|BYE||BYRON ENERGY LTD||0.350||0.135||-61||5.91M|
|GEV||GLOBAL ENERGY VENTURES LTD||0.150||0.059||-60||41.76M|
|LOM||LUCAPA DIAMOND CO LTD||0.120||0.047||-60||23.20M|
|CLZ||CLASSIC MINERALS LTD||0.002||0.002||-60||30.27M|
Some of these stocks may recover as COVID-19 restrictions are eased. But an immediate ‘return to norm’ is far from likely and the impact will be felt for months to come.
Many theme parks are expected to open when restrictions are eased, but the company has not provided to the ASX an indication about when this will occur.
Aged-care focused tech play Hills Holdings (ASX:HIL) told shareholders in March it anticipated demand to plunge, at least temporarily, as budgets were tightened.
Since then it has only updated the ASX once, in late April, where it reiterated the immediate outlook appeared deeply uncertain and it would do everything to protect the business.