To: Ram Seetharaman who wrote (6691 ) 12/28/1999 9:36:00 AM From: DJBEINO Read Replies (2) | Respond to of 9582
Microvision, Alliance, ForSoft chosen By Thom Calandra, CBS MarketWatch Last Update: 9:26 AM ET Dec 28, 1999 More StockWatch Commentary SAN FRANCISCO (CBS.MW) -- It's people's choice time for January effect candidates. Every year, investors in tiny stocks look for the January effect. Some say it's a mythical notion -- the idea that small companies' shares will rise each and every January. I asked CBS MarketWatch viewers for their top choices: small companies that are growing rapidly but whose shares are in the dumps. (See Part I: Tegal Semiconductor and MTR Gaming.) Marc Robins at independent small-stock analyst www.redchip.com tells me the so-called January effect "has not been as pronounced in the last two years. The summer rally in 1998 flopped, giving rise to a fall frenzy, which moderated the January rally." Nasdaq 100 vs. S&P Small Cap This year, tax-loss selling "crept into November, resulting in a December buying eruption," says Robins. "That doesn't mean the bounce won't come, it just won't be as springy." Alliance has ties to Taiwan Jim Varney says Alliance Semiconductor (ALSC: news, msgs) owns about $1 billion worth of pre-tax shares of several related companies, including United Microelectronics Corporation, a Taiwan computer chip maker. "UMC is one of the top producers of chips in Taiwan," says Varney, who expects UMC's Taiwan-traded shares to be listed as American Depositary Receipts in the U.S. market. Alliance, at 15 a share on Nasdaq, has a market cap of $635 million. The shares, though, haven't exactly languished this year; in the past six months they have about doubled in value. (See chart.) The company is based in Silicon Valley, Calif. cbs.marketwatch.com