by Fred Fuld III
In case you haven’t noticed, many of the IPO stocks during the last year have turned out to be turkeys, making them possible tax sale opportunities.
If you are wondering what a tax selling stock is, it is a stock that is currently selling for a low price due to heavy year-end selling for tax purposes, but was trading at much higher levels earlier in the year.
As the year-end approaches, many investors employ the technique called tax harvesting , which is the selling of loser stocks to offset any gains that may have been established during the year.
With all the heavy selling, the price of the stocks that have had big drops tends to tank far more than what would normally take place during the rest of the year.
So traders and investors are on the lookout for stocks that are heavily hit, hoping for a significant bounce in January, once the tax selling is over.
So if you are looking for these types of stocks, here is a selection of some that have dropped by over 20% year-to-date. They all have market capitalizations over $500 million.
| Stock | Symbol | Price Drop YTD |
| Chewy | CHWY | -29.5% |
| Fiverr | FVRR | -43.3% |
| Levi Strauss | LEVI | -20.5% |
| Lyft | LYFT | -47.1% |
| SmileDirectClub | SDC | -29.8% |
| Uber Technologies | UBER | -24.2% |
Maybe someone’s tax losses can be your tax stock gains.
Disclosure: Author owns FVRR