China Water & Drinks: A Good Way to Offset Capital Gains

by: China OTC Player

Before the end of the year, if you haven't already done so, you should try to offset any capital gains (or other taxable income) by selling stocks at a loss. You are allowed up to a $3000 offset.

Three stocks that I would sell (if I held them) would be as follows. I don't see any light at the end of the tunnel for these companies, and I suspect holding them through 2008 may not make a difference:

#3: China Water & Drinks (CWDK.OB): The company's massive dilution this year is still working itself out, with current share price close to its 52-week low. Despite great fundamentals, I don't see a recovery anytime soon.

#2: Benda Pharmaceutical [BPMA.OB]: Without its headlines-grabbing subsidiary Sibiono, this is a fourth-rate chemicals company, with a massive overhang that is going to be there for a long while.

#1: Eternal Technologies [ETLT.OB]: Clueless management coupled with egregious investor relations add up to a dog of a company. Sure its PE is very low, but for good reasons. No sane investor would touch this.

My Position: None.

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