It’s only a couple of weeks until the end of financial year and some people take steps to minimise their tax. One is selling shares they have made a capital loss on, using them to offset any capital gains.

But how can you tell which one are specifically being sold for tax reasons? As a starting point it is easy to look at the stocks that have been the biggest losers in the last 12 months. But it is likely too simple and excluding stocks that may be recovering.

Oliver’s Real Food (ASX: OLI) is one of this financial year’s biggest losers, currently standing 64 per cent lower than 1 July 2018. But it is up 133 per cent since the company announced it had fixed the issues that caused it to decline.

Clearly investors have not (yet) been ‘tax-loss selling’ that stock. But there is the prospect this may begin before the financial year is out.

Another way is the RSI (Relative Strength Index) to detect buying and selling momentum – which we cover weekly in our Hot Money Monday column. Any stock with a figure under 30 is considered to be oversold.

Tax loss victims?

Stockhead has tracked down the biggest losers in the last week along with their financial year to date return and their RSI. The majority of these stocks are also down in the last year although there are two exemptions, one of them being Nucoal (ASX: NCR) and the other Nex Metals (ASX: NME).

Since the quashing of Ian Mcdonald’s and John Maitland’s convictions investors have been hopeful the project may go ahead. The election of Mark Latham, an advocate for Nucoal shareholders, and his tabling of a bill for compensation in parliament spurred hope. But the government seemingly has higher priorities and Nucoal is down 26 per cent in the last week.

Other stocks have a higher correlation between the two and it is far easier to conclude the rush to claim tax losses has hit them.

UUV Aquabotix (ASX: UUV) is down 90 per cent this financial year and 25 per cent in the last week. Investors have sold off the stock as momentum has tracked too slowly and the capital raises (and associated dilutions) too quickly.

Yet investors may have had better luck with other stocks such as Orthocell (ASX: OCC) but facing a tax bill if they have sold or intend to sell by July 1. They can reduce their capital gains bill by selling stocks they have made a loss on and using it to offset capital gains.

CodeNamePrice (2.30pm Tuesday)% Return FYTD1 Week ReturnRSIMarket Cap
AQX ALICE QUEEN LTD0.012-70-2537$7.8M
ANR ANATARA LIFESCIENCES LTD0.20-69-3818$9.9M
AD1 APPLYDIRECT LTD0.013-71-3542$5.5M
ARM AURORA MINERALS LTD0.011-48-2748$1.4M
CAD CAENEUS MINERALS LTD0.001-90-5040$2.1M
CUL CULLEN RESOURCES LTD0.008-57-2731$1.4M
CY5 CYGNUS GOLD LTD0.037-73-2638$2.2M
DTM DART MINING NL0.004-38-2943$5.1M
EER EAST ENERGY RESOURCES LTD0.003-50-4044$9.6M
FRX FLEXIROAM LTD0.013-74-7429$3.1M
GLV GLOBAL VANADIUM LTD0.001-80-3326$2.8M
GCR GOLDEN CROSS RESOURCES LTD0.017-43-3536$1.7M
IAM INTIGER GROUP LTD0.001-91-5034$1.7M
KGM KALNORTH GOLD MINES LTD0.003-50-2543$2.7M
LMW LANDMARK WHITE LTD0.18-66-3317$15.3M
LRS LATIN RESOURCES LTD0.001-67-3343$3.7M
LHB LIONHUB GROUP LTD0.005-91-2917$4.1M
MCT METALICITY LTD0.007-70-3041$4.4M
MTB MOUNT BURGESS MINING NL0.003-57-2547$1.5M
NES NELSON RESOURCES LTD0.05-64-3537$2.3M
NME NEX METALS EXPLORATION LTD0.0140-2543$2.9M
NOR NORWOOD SYSTEMS LTD0.003-43-4044$6.2M
NCR NUCOAL RESOURCES LTD0.0233-2638$15.4M
OLV OTHERLEVELS HOLDINGS LIMITED0.009-74-3630$2.6M
PCL PANCONTINENTAL OIL & GAS NL0.002-50-2536$8.1M
PNN PEPINNINI LITHIUM LTD0.002-89-3337$2.5M
RFR RAFAELLA RESOURCES LTD0.11-55-2750$4.2M
RHI RED HILL IRON LTD0.15-67-2526$8.2M
RCP REDBANK COPPER LTD0.01-68-4126$1.2M
RIM RIMFIRE PACIFIC MINING NL0.003-64-2536$3.2M
SMI SANTANA MINERALS LTD0.003-73-2546$2.0M
SIV SILVER CHEF LTD0.46-87-2825$18.1M
SYT SYNTONIC LTD0.003-75-2524$9.9M
TCN TECHNICHE LTD0.02-50-3534$4.2M
TNR TORIAN RESOURCES LTD0.009-83-2537$2.3M
UUV UUV AQUABOTIX LTD0.006-91-2537$1.9M
WLD WELLARD LTD0.025-75-3718$13.3M
WML WOOMERA MINING LTD0.022-75-3327$2.5M
ZEU ZEUS RESOURCES LTD0.008-43-3827$1.4M

 

Would-be victims?

Of course, just because your stocks have not been hit yet, it does not mean they will not be before 4pm next Friday. Here is a full list of stocks that have declined since July 1 last year but have been positive in the last week and have an RSI suggesting buying momentum.

Flamingo AI (ASX: FGO) has had a solid run in recent weeks after HSBC came onboard as a client. But the stock is still well down on where it was on July 1.

While some investors may hold in anticipation of gains in the future, others would prefer a bigger tax refund on the other side of this financial year.

CodeNamePrice (2.30pm Tuesday)Return FYTD (%)1 Week Return (%)RSIMarket Cap
MQRMARQUEE RESOURCES LIMITED0.13-6320981$5.6M
OLIOLIVER'S REAL FOOD LTD0.055-634566$13.8M
CAFCENTREPOINT ALLIANCE LTD0.095-74365$14.1M
BWXBWX LTD2.25-623262$277.1M
EUCEUROPEAN COBALT LTD0.021-61559$16.0M
POWPROTEAN ENERGY LTD0.01-632257$3.4M
BSMBASS METALS LTD0.009-691254$25.3M
EQEEQUUS MINING LTD0.007-731753$6.3M
CLQCLEAN TEQ HOLDINGS LTD0.3-61353$223.9M
ADRADHERIUM LTD0.031-743551$5.2M
MLXMETALS X LTD0.245-69251$168.8M
FZOFAMILY ZONE CYBER SAFETY LTD0.14-722250$28.1M
AWVANOVA METALS LTD0.001-742550$6.4M
AC8AUSCANN GROUP HOLDINGS LTD0.37-70150$117.3M
FGOFLAMINGO AI LTD0.007-781550$8.4M