There was a huge short covering in the shares of Nokia Corporation (ADR) (NYSE:NOK) and Research In Motion Limited (USA) (NASDAQ:RIMM) as both jumped by 30.88% and 32.65% respectively.
One thing which kept the stock of Nokia Corporation (ADR) (NYSE:NOK) was the news of huge demand for its Nokia Lumia920 and 920T which is out of stock at many places like China where as Research In Motion Limited (USA) (NASDAQ:RIMM) is putting all its hope on the launch of its BlackBerry10.
The Year end problem of tax selling
The year 2012 is ending up to be a decent year for stocks .The S&P 500 (SPY) is up by 11.4%, the NASDAQ is up by 13% and Apple (NASDAQ: AAPL) is up by 56.25% this year to date, after being volatile for the whole year..
The problem starts here. It’s all about saving tax by selling some of the loss making shares at the end of the year to adjust capital gain. The fiscal cliff would have led the investors to take home profits during the year 2012 but that may not be the case in 2013 where the taxes on capital gain might be higher. So the stocks which are held widely and suffered losses during the year would see more selling at the end of the current year.
In the case of Research In Motion Limited (USA) (NASDAQ:RIMM) and Nokia Corporation (ADR) (NYSE:NOK), in spite of a heavy rebound for most of the year, the stocks remain still in negative. Research In Motion Limited (USA) (NASDAQ:RIMM) is still down by 20.5 % since its price of 2011 year end and Nokia Corporation (ADR) (NYSE:NOK) is still down by 27.6 %.The shareholders are planning to sell off all the shares as these shares have fallen in the last few years thus causing the investors lots of losses.
Thus to be conclude it can be said that it’s wise to sell Research In Motion Limited (USA) (NASDAQ:RIMM) and Nokia Corporation (ADR) (NYSE:NOK) now and book profit to take advantage of the current rallied the market. It would be wise to sell them now and again buying back after a month plus one day would ensure the sale to be valid for booking any existing losses.
The share price of Research In Motion Limited (USA) (NASDAQ:RIMM) was up by 13.65% to close at $11.66 whereas shares of Apple Inc. (NASDAQ: AAPL) were up by 1.74% to close at $571.50 and the share price of Nokia Corporation (ADR) (NYSE:NOK) was up by 7.55% to close at $3.56.
