Tax loss trades happen when the stock is at it lowest
Edit: For you and me, we time it in december to find the worst performing stock to save our 2500. For a corporation they can do it anytime as you pay taxes on you net profit at the end of the year. If SUNE goes up, he wont pay a penalty, unless he sells it same year. And even if he sells this year, he pays no more than what he would have paid if he held it. Also, I saw news today that Einhorn's portfolio is green in spite of SunEdison's losses. I see sale of the stock as good opportunity to save on the taxes he would otherwise pay on earning from rest of his portfolio.
From Coffey on Prosperous Thoughts.