8 hours ago
Criterion: Back up the dumpster! It's time for an EOFY share purge
Potential tax loss selling candidates include ASX200 inclusions Domino's Pizza Enterprises and IDP Education
Investors may want to offset capital gains from successful AI and Trump-related plays
But beware: tax-loss selling is governed by ATO rules
Tax-loss selling is a fine judgment call, because the dud shares can be on the cusp of a brilliant recovery.
In some cases, their worth has been further devalued by EOFY selling that in theory will ease after June 30.
But for investors sitting on capital gains from an AI driven splurge on data centres or a fear-driven plunge into gold, offsetting the gains by selling the lost causes makes sense.
Or maybe hey want to lighten up on Commonwealth Bank (ASX:CBA) shares and offset the healthy gains
Investors must ensure they are genuinely exiting the position, with the taxman's 'wash' rules preventing repurchasing within 45 days.
Even then, investors must justify their action, such as independent research changing a call on a stock from 'sell' to 'buy'.
Domino's prospects are as flat as its pizza
Amid a string of downgrades, Domino's Pizza Enterprises (ASX:DMP) shares have lost 88% of their value since peaking in September 2021.
Domino's problems include underperforming French and Japanese operations, while measures including store closures have failed to turn the company's fortunes.
Long-time CEO Don Meij departed in November last year, while the Europe and Japan chiefs have also left the building.
As with McDonald's decades previously, Dominos mastered the art of industrial scale, ultra fast production.
Maybe the world has reached peak pizza … if that's possible.
Busted flush
Having seen 70% of the value of their holdings vanish over the past year, Star Entertainment Group (ASX:SGR) investors would have been better off at the blackjack table … and that's not saying much.
The owner of gambling dens in Sydney, Brisbane and the Gold Coast, Star was crippled by money laundering and other governance controversies.
Star is subject to a convertible note/debt-based rescue bid from US casino operator Bally's Corporation.
An independent expert report dubs the proposal as 'not fair' to shaeholders but 'compelling' nonetheless, given the company's dire position.
Investors should take the hint.
Also pinged for money laundering transgressions, SkyCity Entertainment Group (ASX:SKC) last month warned of 'deteriorating' trading conditions at its Auckland and Adelaide casinos.
Skycity shares have fallen 36% over the year. Morningstar dubs them as 'materially undervalued', but the company's luck doesn't look like turning any time soon.
A sobering lesson
Shares in overseas student wrangler IDP Education (ASX:IEL) plunged 50% after a June 3 profit warning, erasing $1 billion of value.
IDP has nowhere to run, with its key geographies of Canada, Australia, the UK and the US all executing migration crackdowns.
Overseas students made for a once thriving export industry, but the crackdown has cooked and plucked that golden goose.
IDP remains the industry leader and management points to a recovery. The stock remains one class worth wagging, in our humble view.
The stock has lost an astonishing 75% over the last year.
Shooting Bambi
Selling CSL (ASX:CSL) shares is like shooting Bambi, given the almost certain demand for its life-saving plasma derived products.
Once the biggest ASX company, CSL has lost 17% of its value because of weakness in its Seqirus flu vaccine division and its acquired Vifor kidney health arm.
Lingering concerns over Donald Trump's tariff and drug pricing have also weighed on sentiment.
Broker Wilsons describes CSL as 'thorougly over owned'.
But - hey - the experts said the same about CBA shares, which continue to defy gravity.
Cochlear (ASX:COH) shares also are off the pace. In an earnings downgrade last week, the company noted weakness in developed markets for implant and sound processor sales.
New implant and processor products might put things right, but so far investors aren't listening.
Small cap cleanout candidates
Call recording house Dubber Corp (ASX:DUB) in March 2024 discovered that $30 million of funds had gone missing.
This week, the company said it would sue its external auditors over the unrecovered $26.6 million. But with investors sitting on an 80% loss since the incident, they probably should hang up.
In the retail sector, shares in plus-sized clothier City Chic Collective (ASX:CCX) have shrunk 35% over the year and 97% over five years.
The company recently warned of poor trading here and in the US, while tariffs are a worry.
Weight Watchers filed for US bankruptcy in May and Ozempic sales are booming, so maybe there's a nexus.
Owner of Kathmandu, KMD Brands (ASX:KMD) on Thursday signalled peak puffer jacket with a weak earnings outlook.
