They say one man's trash is another man's treasure. At least 2 S&P losers could quickly transform into winners.
Gary Kaminsky, former managing director at Neuberger Berman tells Fast Money that he’s keeping his eye on Vulcan and Suntrust, two stocks that are currently among the S&P's worst performers year-to-date.
Kaminsky says that tax loss selling by mutual funds could present some opportunities in these names.
"They want to get as many recognized losses as possible before the end of the mutual fund year which is typically October 31st."
As a result, he expects money managers who hold Vulcan and Suntrust will sell merely to offset taxes on capital gains.
However, Kaminsky believes fundamental story remain in tact. "Both have been impacted by the weak Florida economy, but the fact of the matter is Vulcan and Suntrust are both quality names," says Kaminsky.
Another way of saying all that is Vulcan and Suntrust have underperfomed.
“My guess is that you’re going to see significant outperformance in those names from October 1st through the end of the fourth quarter,” he says. They look like solid companies at bargain basement prices.
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