Tide, Criteria for LONG portfolio is based on a sneak peak at January Effect. On December 8 and 9, some of the craftiest portfolio managers placed enormous buys in a small group of companies, sending them north.
My play is that, the lemming-like fund managers of the other 10,000 mutual funds would quickly follow suit and buy the SAME companies. . . over and over right on through January.
Other factors that bear on selection is, technology that has not seen a peak in use, or lesser priced competitor that is rapidly gaining on well-known leader. EXAMPLES: AOL is being replaced by cable modem driven ATHM. . . Yahoo replaced by SEEK [ now with Express and Go.Network] . . . Dell being replaced by CPQ [which is top selling retail PC]. . .Cisco replaced by CS, which makes better rated servers.
Last factor is undervalued/ignored with strong and increasing revenue base, IE, DCLK, TFSM. . .top internet advertisers [revs expected to increase dramatically this year] . . . .IOM [Zip has replaced floppies as the standard] . . . .
ETC., ETC., ETC.,
I feel this portfolio will make most of its gains by Ground Hog's Day. . . some getting there before others, of course. . . but should outperform throughout 99.
I have been impressed by it's uniform performance. . . can't wait to make a "January Effect" portfolio next year. . .it was fun.
Hope this helps,
Rande Is |
