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Believe it or not tax-loss season is upon us once again. Every year investors have the opportunity to sell their losing positions thereby "harvesting" their tax losses to offset and/or eliminate the capital gains taxes that they may have realized on their other positions. Tax-loss selling is often concentrated in those stocks that have suffered the greatest declines during the year. We therefore like to review the list of stocks with the greatest year-to-date declines and attempt to identify from that list a few names that look "oversold," have improving fundamentals and which might be subject to a technical bounce as tax-loss selling dries up as the end of the year approaches and disappears entirely with the advent of the new year.

To that end we have identified 15 stocks that have suffered year-to-date declines of at least 20%, have a small enough market cap that the tax loss selling could have artificially depressed share prices and are predicted to have earnings per share and/or revenue increases in the next fiscal year compared with the current year. With the majority of stocks up this year, perhaps this year's bounce will be amplified. Here are the first five companies on our list:

BroadSoft, Inc. (NASDAQ:BSFT)

This two year chart highlights just how volatile this name is. If the company can deliver on the growth investors and analysts are expecting, readers could very well catch one of the upswings BroadSoft is known for.

(click to enlarge)

Source: Yahoo Finance

BroadSoft provides software and services that enable mobile, fixed line and cable service providers to deliver hosted or cloud based unified communications and other voice and multimedia services over internet protocol based networks. The company has a market cap of $709 million. The average daily volume is 495,000 shares per day. Earnings are estimated to increase from $1.21 per share for the current year to $1.53 per share next year. Likewise, revenues are slated to increase from an estimated $176 million this year to $204 million next year. The stock is off 32% this year.

Cincinnati Bell, Inc. (NYSE:CBB)

Cincinnati Bell is a breakout candidate for 2014 as the company saw most of its losses earlier in 2013 and is actually seeing its shares rally into the close of the year now.

(click to enlarge)

Source: Yahoo Finance

Cincinnati Bell provides telecommunications and technology services. The company has a market cap of $719 million. The stock trades an average of over 1.3 million shares per day. Earnings are slated to increase from a deficit of $.16 per share this year to $.13 per share next year although revenues should be sluggish. The stock is down 39% this year.

Ceragon Networks Ltd. (NASDAQ:CRNT)

Ceragon appeared poised to rally into the end of the year while breaking out of a well defined downtrend, but the stock met heavy selling and now investors find shares trading very close to 52-week lows.

(click to enlarge)

Source: Yahoo Finance

Ceragon provides wireless backhaul solutions that enable cellular operators and other wireless providers to deliver voice and data services. The market cap here is right at $100 million and the stock trades an average of only 292,000 shares per day. Earnings are estimated to increase from an estimated deficit of $0.46 per share this year to $0.20 per share next year. Revenues should increase from an estimated $367 million this year to $419 million next year. The stock is down 39% this year.

EV Energy Partners LP (NASDAQ:EVEP)

EV Energy is an upstream oil and natural gas master limited partnership with geographically diversified properties located in the continental United States. The company has a market cap of $1.56 billion and trades just 309,000 per day. Earnings are slated to increase from an estimated deficit of $0.36 per unit this year to $41.32 per unit next year. Revenues are estimated to increase from this year's estimate of $329 million to $411 million next year. The units are down 43% this year largely due to its much delayed and downsized Utica land sale process.

After reaching highs in 2012 on the hopes for a $1 billion+ payday from a sale of their Utica acreage, EVEP has seen its shares fall precipitously in 2013.

(click to enlarge)

Source: Yahoo Finance

EZchip Semiconductor Ltd. (NASDAQ:EZCH)

EZchip is a fabless semiconductor company that engages in the development and marketing of Ethernet network processors for networking equipment. The company has a market cap of $688 million and the stock trades an average of 345,000 shares per day. Earnings this year are estimated to be $1.18 per share and are estimated to increase to $1.61 per share next year. Likewise, revenues are estimated to increase from this year's estimate of $70 million to $87 million next year. Due to what has proven to be overblown fears of product competition from existing customers, the stock is down 32% this year.

Not only has 2013 been a tough year for EZchip, but the past 18 months have been rough.

(click to enlarge)

Source: Yahoo Finance

In conclusion, all of the companies featuring on our list have had a horrendous year in the stock market with each down in excess of 20% in spite of a rising market. Each company is a prime candidate for tax loss selling and likewise should experience a bounce in their stock prices as tax selling abates as the year comes to an end. Additionally, each of our featured companies has improving fundamental outlooks with earnings per share for each company estimated to increase next year. We feel the stage is set for a potentially rewarding 30 to 45 day trade in each of these companies.

Source: Tax Loss Candidates To Buy - Part 1