Low-priced stocks have their best performance, by far, during the first 10 weeks of the year.
Those that move up most strongly have the following typical profile:
* small market cap
* low stock price
* beaten down by tax loss selling late in the previous year
* owned primarily by individuals
The purpose of this thread is to identify stocks that meet these criteria.
Similar threads I started the last two years were quite successful:
January Effect 2000:
Subject 32350
My return, net of trading costs, was +17% vs. +10.6% for the Russell 2000. Here's my final report:
Message 12781974
January Effect 1999:
Subject 24490
My return, net of trading costs, was +11%, vs. nil for the Russell 2000. Here's my final report:
Message 7737621
I will follow the mechanical timing formula that I used last year:
* I bought in the period Dec. 20 - Dec. 28
* I sold everything by the first Friday in February, unless:
* If a stock had a +35% gain on a stock, I sold it automatically by a limit order
This timing is based on historical average charts for low-priced stocks. |
