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If you want to take advantage of the January effect - where prices of the year's biggest losers...

If you want to take advantage of the January effect - where prices of the year's biggest losers tend to rise more in January - do it now, says the Arora Report's Nigam Arora. The strategy originally called for buying depressed stocks in the last week of December, but now that the phenomenon has become so well known, Agora says the time to buy is now in November. Some of his picks: Penson Worldwide (PNSN), Illumina (ILMN), Clearwire (CLWR) and Goldman Sachs (GS)
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Comments (7)
  • Native Texan
    , contributor
    Comments (-724) | Send Message
     
    LOL After the banksters are done juicing up their #'s here in Q4 to show a positive return for `11, they're going to sell this stinky turd down starting in week 1 of Q1 2012,
    11 Nov 2011, 08:06 PM Reply Like
  • 2PP
    , contributor
    Comments (349) | Send Message
     
    Very eloquently said Texan, I'm also tired of these juiced numbers. Show me year to year profit data instead of this BS "beats our estimate by $.01" every quarter. Beat their own estimate? What a joke, Enron accounting I presume.
    11 Nov 2011, 09:15 PM Reply Like
  • untrusting investor
    , contributor
    Comments (9950) | Send Message
     
    2012 will not be a good year for equities, so doubt buying now is much of a strategy.
    12 Nov 2011, 12:04 AM Reply Like
  • golfitobob
    , contributor
    Comments (2347) | Send Message
     
    Nigam, I have learned not to doubt your stuff ! I do think this market is way to overvalued ! The GDP next year will shock all and if oil stays near 100 or climbs as ME festers an Israel might see war all bets are off.

     

    However, the stock who's co-owner just raised enough money from their band sale will do wonders for there investment project. I am adding on Monday ! Thanx for reinforcement ! gb
    12 Nov 2011, 03:15 AM Reply Like
  • 1980XLS
    , contributor
    Comments (3333) | Send Message
     
    Bank stocks aside this strategy can be effective.

     

    This years laggards tend to get pushed down even further towards the end of the year while some harvest Tax losses to offest their other gains.

     

    This often creates an even more oversold condition, which then sometimes attracts value investers to the names thereafter.

     

    Caution however. Sometimes these names were laggards for good reason.
    12 Nov 2011, 11:39 AM Reply Like
  • Native Texan
    , contributor
    Comments (-724) | Send Message
     
    Bob and 1980, both of you understand investing and the markets better than I do so I'll have to defer to your better judgment in endorsing the authors contention. I'd like to believe that you and the author are right but all I've been hearing is that the market performance of Q4 is nothing more than the Big Boys holding their noses and buying stocks in an effort to juice up / artificially inflate stock prices in order to show a positive return for 2011. If this is correct, it only stands to reason that a selloff and profit taking should ensue after Q4. However and based on your comments above, it sounds like neither of you think a think a selloff will happen and instead, more of the same can continue.

     

    Please elaborate and correct me where necessary.
    12 Nov 2011, 12:22 PM Reply Like
  • golfitobob
    , contributor
    Comments (2347) | Send Message
     
    NT, the one stock I am talking about is less then 2 bucks. Not to far to go and at current price is less than most options !
    I am buying not for earnings or growth ,but, when T gobbles up number 3 number 4 becomes 3 it's offshoots might be sold ! bob
    12 Nov 2011, 12:32 PM Reply Like
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