I’ve been getting a lot of emails from people wanting guidance on how to play “The January Effect”. For those of you who don’t know what that is, it’s the tendency for beaten down stocks to rise in January based on the theory that the selling over the past few months was due to tax loss selling (people like to offset their incomes with investment losses). So, traders look to find beaten down stocks that can really pop if and when the selling decreases.
Next week, I’ll unveil a pretty wide ranging list of January Effect plays, but for now, here are 7 stocks that don’t qualify because their drops are due to SEVERE PROBLEMS. Some companies have internal conflicts, some are simply in the wrong place at the wrong time, but make no mistake, the selling is not just tax loss selling, it’s people who want out! (aka it’ll probly continue).
WARNING: DO NOT CONSIDER THESE JANUARY EFFECT PLAYS, THEY DO NOT QUALIFY. INVESTING IN THESE COMPANIES WILL BE DANGEROUS TO YOUR INVESTMENT HEALTH.
Rite Aid (NYSE: RAD)
Advanced Micro Deices (NYSE: AMD)
Comcast (Nasdaq: CMCSA)
Starbucks (Nasdaq: SBUX)
Conexant Systems (Nasdaq: CNXT)
Spanson (Nasdaq: SPSN)
LSI Corp (NYSE: LSI)
Warning: No positions, I alue my investment health.
