A few weeks ago we did a post that detailed the combination of the 4 year presidential cycle with the January effect in small caps. (Older post here.) The quick summary is that tax selling, window dressing, etc push down beaten down small caps, and if you buy a basket (or even the Rus 2k) mid Dec then by mid Jan or end of Jan historically has done fantastic. (Risk averse investors can hedge out the broad market with shorting the S&P 500). There is a huge amount of research out here, and for those that subscribe Ned Davis has a great piece out on the topic. Below are a few simple screens, as usual do your own DD as we don’t own any, nor intend to buy any. This is meant for ideas only, and should be a starting point for your research.
Small (Min $100M market cap, down at least 70% YTD)
APAGF
RSH
EDMX
GRPN
AMRS
OCZ
KCG
STRI
NIHD
EOX
MCP
Really Small (Min $10M market cap, down at least 70% YTD)
KITD
SCMR
PULS
APAGF
RSH
EDMC
IQNT
GEVO
AMRS
Small Quality (Min $100M market cap, down at least 60% YTD, but only took top half by these factors P/B, P/S, EV/EBITDA, Debt/Assets)
ACTV
ANR
ART
DM
EDMC
GNK
NIHD
PMFG
RSH
YPF
Ironically, this year may see another effect due to pending tax changes, and that is people selling high dividend stocks.
Dividend selloff (Min $100M market cap, > 10% dividend yield, worst 10 stocks by 4 week return)
BGCP
CFNB
GLAD
NLY
NTLS
OIBR
PBI
PT
TNK
TNP
A few non stock ideas for the holiday challenged gift givers:
My favorite site for shopping for brothers, fathers, etc: Uncrate – gear for guys, with gifts like emergency phone, boots, and iphone case.
Other ideas include homeade gin, leather touchscreen gloves, sake bottles, and drive a tank… I’m buying some of these for XMas for my family, but since none of them read my blog I have little to worry about…
One of my favorites for the ladies in your life is Wantful (lets you curate down to 3-10 choices, then they mail a pretty book that let’s them choose the final).
Brilliant!
And if you’re going to send me something, I love good tequila as long as it’s not Patron…
