Dec. 18 at 9:52 PM
Tax-loss selling this month is contributing to downward pressure on stock prices, especially in small-cap stocks, resulting in exaggerated declines. Many small-cap biotech names are now trading at bargain levels. For example,
$PLRX has a net cash value of ~
$3 per share, while
$VTGN has ~
$1.56 in net cash. The January effect could help many of these oversold stocks rebound as the selling pressure eases. Based on my experience, these prices won't stay at these levels for long. The market tends to adjust very quickly.