Free Lunch
Find December bargain stocks and track performance.
FREE Lunch #1 2005 Is Served
Five years ago, we altered our Free Lunch Strategy. The original strategy stated that stocks hitting new lows around December 15 tend to outperform the market by February 15. We tweaked the strategy by shifting the purchase date to the end of December, three days from the last trading day of the year with good results. The original strategy also only consisted of NYSE traded stocks. The updated strategy incorporated AMEX, NASDAQ and OTCBB stocks with great results.
This year we noticed that there were indeed two Free Lunches, one most likely caused by institutions selling off their losers and one, we theorize, caused by individuals doing the same. The institutional free lunch occurs around the 15th of the month after the last mid-month cash inflows for the year. The individually triggered free lunch occurs three days before the last trading day of the year. This is the last day of the year you can sell a stock and have it settle that calendar year; thus allowing for tax losses to be claimed for the year.
This is the first course of the Free Lunch. The second course will be served before the open (as early as possible) the morning of the 28th. As a reminder this is a short-term trading strategy. You get in and get out as soon as you have a significant gain. The stocks all behave differently and there is no automatic trigger point to sell at. Standard trading rules do not apply for these trades. You should be out of all of these stocks between the middle of January and the middle of February. Advice a la G.M Loeb, never forget why you bought a stock.
Also, be careful not to chase these stocks if they have already run away.
2005 FREE Lunch Menu of Bargain Stocks 71 Mid-December NYSE, NASDAQ, AMEX & OTCBB New Lows |
|||||
| 52 Week Low |
52 Week High |
% Down From High |
12/15/2005 Close |
||
| NYSE | |||||
| BBA | Bombay Company | 2.75 | 6.59 | -58.3% | 2.80 |
| CTC | Compania de Tel de Chile | 8.50 | 12.07 | -29.6% | 8.69 |
| DLX | Deluxe | 31.00 | 43.20 | -28.2% | 31.11 |
| DMH | Ducati | 11.30 | 14.75 | -23.4% | 11.30 |
| FA | Fairchild | 2.11 | 4.04 | -47.8% | 2.18 |
| MAD | Madeco | 8.01 | 11.72 | -31.7% | 8.40 |
| MNI | McClatchy | 57.45 | 76.05 | -24.5% | 57.72 |
| MDS | Midas | 17.65 | 24.74 | -28.7% | 17.93 |
| NTY | NBTY | 16.80 | 27.70 | -39.4% | 17.04 |
| NAT | Nordic American Tanker | 30.01 | 56.68 | -47.1% | 30.92 |
| PIR | Pier 1 Imports | 9.72 | 19.98 | -51.4% | 9.80 |
| PRM | PRIMEDIA | 1.66 | 4.75 | -65.1% | 1.69 |
| RUS | Russ Berrie | 11.15 | 24.25 | -54.0% | 11.20 |
| TG | Tredegar | 11.69 | 20.71 | -43.6% | 11.76 |
| VCI | Valassis Communications | 29.42 | 40.80 | -27.9% | 29.59 |
| NASDAQ | |||||
| ACTL | Actel | 18.64 | 13.20 | -29.2% | 13.37 |
| ATCO | American Tech | 11.55 | 3.00 | -74.0% | 3.39 |
| ANLY | Analysts Int'l | 4.10 | 2.25 | -45.1% | 2.33 |
| ATAR | Atari | 3.40 | 1.01 | -70.3% | 1.14 |
| ATSI | ATS Medical | 4.75 | 2.61 | -45.1% | 2.83 |
| CHNL | Channell | 10.39 | 4.33 | -58.3% | 4.46 |
| DTSI | DTS | 22.00 | 13.44 | -38.9% | 13.49 |
| GGAL | Grupo Financiero Galicia | 10.15 | 6.91 | -31.9% | 7.13 |
| HIHO | Highway Holdings | 4.85 | 2.77 | -42.9% | 2.85 |
| INOC | Innotrac | 9.00 | 4.05 | -55.0% | 4.05 |
| ISCA | Int'l Speedway | 60.59 | 44.92 | -25.9% | 45.31 |
| IPIX | IPIX | 6.48 | 2.10 | -67.6% | 2.15 |
| JBSS | John B Sanfilippo & Son | 26.97 | 13.25 | -50.9% | 13.31 |
| LANC | Lancaster Colony | 46.24 | 36.75 | -20.5% | 37.75 |
| NEXM | NexMed | 2.56 | 0.80 | -68.8% | 0.81 |
| NWIR | NWH | 17.00 | 12.75 | -25.0% | 12.76 |
| PDSN | PowerDsine | 13.90 | 6.45 | -53.6% | 6.54 |
| QLTI | QLT | 17.30 | 6.02 | -65.2% | 6.10 |
| RGCI | Regent Comm | 6.39 | 4.51 | -29.4% | 4.63 |
| RGCO | RGC Resources | 37.00 | 24.50 | -33.8% | 24.50 |
| RCKY | Rocky Shoes & Boots | 36.44 | 21.56 | -40.8% | 22.10 |
| RBNF | Rurban Financial | 14.49 | 11.80 | -18.6% | 12.18 |
| SAFM | Sanderson Farms | 49.19 | 31.18 | -36.6% | 31.89 |
| SNDA | Shanda Interactive | 45.40 | 15.15 | -66.6% | 15.56 |
| HDTV | Spatialight | 9.15 | 3.11 | -66.0% | 3.65 |
| SPPI | Spectrum Pharmaceuticals | 7.50 | 3.51 | -53.2% | 3.89 |
| SYMC | Symantec | 28.40 | 17.12 | -39.7% | 17.38 |
| TSTY | Tasty Baking | 9.78 | 7.02 | -28.2% | 7.34 |
| TOPP | Topps | 11.18 | 7.04 | -37.0% | 7.11 |
| TTPA | Trintech | 6.82 | 2.88 | -57.8% | 3.11 |
| TPTH | TriPath Imaging | 9.52 | 5.95 | -37.5% | 5.98 |
| WCAA | WCA Waste | 10.66 | 7.60 | -28.7% | 7.68 |
| AMEX | |||||
| AMM | AMS Health | 6.00 | 0.52 | -91.3% | 0.70 |
| GBR | CableTel | 8.15 | 2.60 | -68.1% | 2.70 |
| LXU | LSB Industries | 8.05 | 4.84 | -39.9% | 5.05 |
| MHG | Meritage Hospitality | 5.77 | 4.60 | -20.3% | 4.60 |
| MPE | Mpower | 1.97 | 1.17 | -40.6% | 1.18 |
| NEP | Nephros | 5.90 | 1.47 | -75.1% | 1.53 |
| SMD | Singing Machine | 1.05 | 0.21 | -80.0% | 0.22 |
| SGC | Surpieror Uniform | 15.00 | 10.43 | -30.5% | 10.50 |
| TO | Tech/Ops Sevcon | 7.15 | 4.98 | -30.3% | 5.00 |
| TFN | Transnational Financial | 0.80 | 0.35 | -56.3% | 0.42 |
| VSF | Vita Food | 3.95 | 1.80 | -54.4% | 1.80 |
| OTCBB | |||||
| ABCP | AmBase | 0.93 | 0.52 | -44.1% | 0.52 |
| ACNB | ACNB | 28.00 | 19.10 | -31.8% | 19.75 |
| AMSI | Artemis Int'l Solutions | 3.87 | 1.25 | -67.7% | 1.30 |
| AUXO | Auxilio | 3.15 | 1.55 | -50.8% | 1.60 |
| CHMS | China Mobility | 0.74 | 0.33 | -55.4% | 0.34 |
| EGMI | Electronic Game Card | 2.52 | 0.46 | -81.7% | 0.46 |
| HRAI | HouseRaising | 3.05 | 0.25 | -91.8% | 0.29 |
| MMGG | Metalline Mining | 2.09 | 0.72 | -65.6% | 0.80 |
| ONEI | Oneida | 3.14 | 0.45 | -85.7% | 0.46 |
| PFTR | PharmaFrontiers | 8.70 | 0.56 | -93.6% | 0.59 |
| SSRV | Smartserv Online | 2.40 | 0.30 | -87.5% | 0.30 |
| TKER | Tasker Capital | 5.15 | 0.57 | -88.9% | 0.59 |
| WLSA | Wireless Age | 0.90 | 0.25 | -72.2% | 0.28 |
TRADING GUIDELINES - DO NOT APPLY!
YOU ARE ON YOUR OWN TO DETERMINE YOUR EXIT POINTS.
WE WILL NOT BE UPDATING INDIVIDUAL FREE LUNCH STOCKS.
Please trade carefully. Bon Appetite!
Those who study market history are bound to profit from it.
Sincerely,
Jeffrey A. Hirsch, Editor & Publisher
J. Taylor Brown, Vice President
The next issue will be available after the close on January 12th, 2006.
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Stock Trader's Almanac® Almanac Investor © Copyright 2005 by The Hirsch Organization Inc. 79 Main Street Suite 3 Nyack NY 10960. Tel: 845-358-4220 Fax: 845-358-4223. Available only to Stock Trader's Almanac® Almanac Investor subscribers. http://www.stocktradersalmanac.com
Pursuant to the provisions of Rule 206 (4) of the Investment Advisers Act of 1940, we advise all readers to recognize that they should not assume that all recommendations made in the future will be profitable or will equal the performance of any recommendations referred to in this Email issue.
The information presented in this Almanac Investor has been obtained from sources believed to be reliable, but its accuracy is not guaranteed. The security portfolio of our employees, officers or affiliated companies may, in some instances, include securities mentioned in this Almanac Investor.