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To: whenitgoesup who wrote (180)	12/20/2005 11:08:22 AM
From: midastouch017	Read Replies (1) \| Respond to of 288

An article, in apropos, >>Traders usually devote the last two weeks of the year to examining their investment portfolios from two angles: taxes and transactions recommended by accountants, and returns on investments that will be printed on the last day of the year, including disclosure of a list of held shares, which will appear in the report to clients. Fashion designers call this sort of thing “window dressing.” Traders of all types want to improve their returns at the end of the year, especially hedge fund managers, who have been the dominant investors in recent years. The returns printed on December 31 determine how much money they make. When trading in the market is light because of the holidays, it’s easier for investment managers and the big moneymen to influence end-of-year share prices, especially small, lightly traded shares. The combination of manipulation aimed at improving returns (window dressing) and sales of money-losing shares aimed at reducing tax liabilities generate selling pressure in what I call “pariah” shares shares that have caused heavy losses this year, which no investment managers wants to appear in their annual report. On the other hand, prices of shares with outstanding performances this year will rise even further, because those who do not have those shares in their portfolios will now hurry to buy them in order to have them included in their annual report. You’re not in on Wall Street these days unless you’ve got an iPod player in your pocket and Apple Computer (Nasdaq: AAPL) shares in your portfolio. The conventional January effect is a result of these patterns. At the start of a new year, traders repurchase the same pariah shares that they all sold, the price of which has become so attractive. After 30 days, it is also legally permissible to repurchase money-losing shares sold for tax purposes, and demand for these shares strengthens in January. Some sophisticated investors are taking advantage of these end-of-year trading patterns by buying these shares now. The www.moneycentral.msn.com website is this week published a list of 15 shares being pushed down by end-of-year sales, which the website believes will benefit from the January effect, and which it therefore recommends buying now. The shares were chosen after hundreds of companies were reviewed. Obviously, one of the requirements for inclusion in the list is a steep fall in 2005, with a very good chance for a significant improvement in 2006. The site looked for companies whose business is expected to recovery in the coming years, with annual growth of at least 15% of profit per share in the next five years. << globes.co.il Dubi