Here are the results for the three portfolios as at Friday.
vs. Purchase (Dec-28) vs. Dec-31
$ 2 to $9 stocks: +0,61% -7,09%
40c to $2 stocks: +36,97% +9,95%
OTCBBjunk to 40c: +2,88% -19,72%
Overall: +15,65% -2,66%
(with a 40:40:20 weighting, as in the portfolios)
Russel 2000: -2,70% -1,70%
Portfolios are in:
siliconinvestor.com
siliconinvestor.com
siliconinvestor.com
Generally spoken, there was not much of a January effect overall, although some of the stock provided for cheap entries and nice exits. So, much like N posted, it is crucial to take gains when they are there.
Similar to the performance in 2001 I saw the peak values for the 3 portfolios (all three showing a handsome gain) by mid-month.
I stick with my idea to buy small stocks, before I buy bigger stocks the next time.
Not surprisingly, the 40c to $2 portfolio shows the best gain, and measured from the yearend, a gain at all as opposed to all others.
This can be attributed to the bottom feeding, you find 3 stocks in the portfolio which are still up 50% and more (FSTW, LNTE and SGNT).
In real life however I achieved a gain with the OTCBB portfolio mostly because of selling the temporary recovery of LCP which showed a 400% gain for about a week after the seller was cleared out.
None of the 24 stocks got halted or filed for BK, take that as a matter of luck, when you see crappy companies thrown off the exchange for cooking the books or filing for Ch.11 on a daily basis (see current nasdaq trading halts list).
But some stocks (SYBB, NXCD, ATPG) had severe losses, something I did not experience in the last years of January buying. One rotten egg in each of the 3 portfolios barred a better overall performance.
Another one, ANTV fell to 1.20 before recovering. It is likely that it has seen its low in January, rather than December.
As a result similar to N, I will probably avoid the crappiest of all companies (ie those ones trading below 40c or on the OTCBB) simply because those ones look totally forgotten and there is no january buying at all, except very few cases with stock manipulation.
But cheap nasdaq stock (and such stock without acute ch.11 rumours, like MFNX, MCLD and having hypertrophic volumes with downward pressure, like NXCD) appear to be prone to a positive effect at all the times. |
