CHATROOM

WARNING: THESE 7 STOCKS ARE DANGEROUS TO YOUR INVESTMENT HEALTH

January 3, 2008 at 8:23 pm
by Timothy Sykes

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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.

Posted in January Effect

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  • Getshorty

    Hey TIM how about ILF and EWZ Ishares for a bounce????

  • Omaggio

    Those aren’t penny stocks….Yet…

  • Attack987

    Short sellers back in business today baby! The SEC ban ended last night at midnight.

  • Reaper

    Reserved 4200 shares of ZYXI at Goldman. Yay!

  • nojobmaui

    Tim where do you post your alerts first so we can monitor for fast notice?

  • http://www.test.timothysykes.com timothysykes

    i post alerts on this site and email em, no specific order

  • hcabral

    Check EWJ. It’s pretty bounceable.

    In Brazil dollar is spiking… RIO, EWZ, PBR, GGB, TAM, GOL, CSN, all longable.

  • hcabral

    Also if you wanna check commodities every once in a while, look at RIO (Rion Tinto, RTP in NYSE) in Aussie stock market. They are several hours ahead of us, and if you overlay RTP and RIO you’d be amazed with the pattern. Rio Tinto down in ASX, chances are RIO are down on NYSE. And vice-versa.

  • nojobmaui

    do you create a new heading for the alert or post in comments

  • Gertsomething

    It is pretty hard to hit the refresh button here every minute since I don’t get any e-mail alerts anymore :-(

  • Reaper

    In ZYXI on the break of $5 and out on the morning panic for a quick $1312 on 2k shares. My fills sucked, I hate OTC fills. But I’ll take it!

    Total TimProfit now of $42,295

  • Reaper

    I still have 2k shares of ZYXI reserved in case it does something else interesting. But I’ve learned my lesson from VSE last week – take profits on a first down day morning panic!

  • kshelia

    I don’t get the email alerts either

  • Getshorty

    DEAD ON ON PLAYING THE BOUNCE !!!!

    made around $400 on the ENER bounce and $250 on the ILF BOUNCE

    Dead on Cabral, EWZ and ILF are moving side by side

  • http://www.ontheflyguides.com Jeff C

    Nice call Reaper

  • hcabral

    Market is nuts… I’m closing positions and making small profits while moving back to fixed income in Brazil, where the base rate is now 13.75% / year. I will wait the elections to get deep into the stock market again. For now, just learning here and there.

  • hcabral

    MT is diving deep again. I’ve mad several hundreds of dollars with it in the last weeks.

  • Getshorty

    Yeah Cabral, damn crazy, just getting out of whatever after the momentum is over.

    Made $650 on ILF and ENER, got out as soon as the momentum weakened, tried to do the same with WB and gave back $100. Done for playing bounces, will go back to sleep (7:20 am here, been up since 6:00) got to take my car to the garage today, good luck everybody.

    Tim, good call on playing bounces on funds, much more stable patterns, EWZ and ILF were awesome.