Ripe for a comeback, today’s stock selection gives surplus and salvage items a chance to find a new home via online auctions.
Liquidity Services (LQDT)
from The Investor’s Edge
In up years like 2013, there is an interesting phenomenon which we like to take advantage of: buying shares of quality stocks that have taken the biggest hits during the year and are ripe for tax-loss selling to offset gains in other holdings.
To see how this works, look at the Dow’s worst performer in 2012, Hewlett Packard (HPQ).
From its November low to the end of January 2013—just two months—it rose 47%. As long as we stick with quality firms, this has been a particularly successful year-end/new year strategy for us for many years. The following company is one of my top 5 picks for tax season bounce-back this year. It has a fine balance sheet and profitability and growth profiles.
Liquidity Services (LQDT) may be the most rebound-likely pick of all. Down nearly 40%, this quality company offers an online auction marketplace for surplus and salvage assets, providing corporate and manufacturing professionals with access to a global, organized supply of surplus and salvage assets, which are presented with digital images and other relevant product information.
They create a more liquid marketplace. The company’s product offerings are organized into categories across major industries, including consumer electronics, apparel, scientific equipment, aerospace parts, technology hardware, energy equipment, fleet and transportation equipment, and more.
Joseph L. Shaefer, The Investor’s Edge, www.investorsedge.us, 800-253-2088, December 2013