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Strategies & Market Trends : January Effect 2006
IWM 259.73-1.4%Jan 30 4:00 PM EST

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To: RockyBalboa who wrote (69)2/1/2006 9:19:01 AM
From: Q.   of 79
 
Midland:

I wonder what distinguished your picks from mine.

The market caps were generally about the same.

Two possible differences: stock price and price movement at end of year. I'd guess the latter might be responsible. Tell me what you think about this:

Price:
My picks were mostly below $1, which is scary because of the delisting risk, but tends to cause bigger price movements up or down. My median price was about 0.9, yours was about 1.5. I doubt if that accounts for the difference in our returns, though, because when I graphed your returns vs. stock price I didn't see any correlation of return and price.

Price movement:
I required that the stock go down in November and December, as an indication of tax-loss selling, and I tried to eliminate stocks that went down as a result of news in late December. See these three-month charts for my picks:
finance.yahoo.com
Looking at similar charts for your picks, I'm wondering if that could have made a difference:
finance.yahoo.com
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