Free Lunch
Find December bargain stocks and track performance.
FREE Lunch 2009 Is Served
This “Free Lunch“ strategy is only a short-term strategy reserved for the nimblest traders. It has performed better after market corrections and when there are more new lows to choose from. We just experienced the fifth worst bear market since 1900 and we suspect that we have already begun a new bull market. There are a many viable and interesting candidates this year.
We have come to the conclusion that the most opportune time to compile our list is on the Friday before Christmas. This allows us to capitalize on the Santa Claus Rally and it also comes on quadruple witching which further depresses already distressed equities. It also gives us the weekend to evaluate the issues in greater depth and weed out any glaringly problematic stocks.
Our basic parameters are that the stock set a 52-week low on Friday December 18. Preferred stocks, funds, splits, special high dividends and new issues are eliminated. In addition, we eliminated any stocks that looked questionable or thinly traded.
If you buy these stocks, sell them 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.
As a reminder, the next Alert will be the Santa Claus Rally Alert on January 5, 2010. But do check the blog for any interim comments and observations.
Happy New Year & we wish you all health & prosperity in 2010!
DISCLOSURE NOTE: Officers of the Hirsch Organization do not currently own any of the shares mentioned. However, we may participate in the Free Lunch Strategy.
| 2009 FREE Lunch Menu of Bargain Stocks | |||||
| 25 Friday-Before-Christmas New Lows | |||||
| 52-Week | 52-Week | % Down | 12/18/2009 | ||
| Low | High | From High | Close | ||
| NYSE | |||||
| TCL | Tata Communications | 14.23 | 27.46 | – 48.2% | 15.35 |
| AMEX | |||||
| EAG | American Defense Sys | 0.31 | 1.00 | – 69.0% | 0.32 |
| NASDAQ | |||||
| ATRN | Atrinsic | 0.52 | 1.50 | – 65.3% | 0.52 |
| BIDZ | Bidz.com | 1.88 | 4.97 | – 62.2% | 2.00 |
| COCO | Corinthian Colleges | 12.64 | 21.73 | – 41.8% | 13.48 |
| IESC | Integrated Electrical Serv | 5.89 | 13.64 | – 56.8% | 5.93 |
| MSFG | MainSource Financial Gr | 4.59 | 16.78 | – 72.6% | 4.59 |
| NCTY | The9 Limited | 6.61 | 16.64 | – 60.3% | 6.63 |
| NLCI | Nobel Learning Commun | 7.32 | 13.98 | – 47.6% | 7.50 |
| ONAV | Omega Navigation Enter | 2.63 | 8.20 | – 67.9% | 2.73 |
| PGC | Peapack-Gladstone Fin | 10.69 | 30.14 | – 64.5% | 11.03 |
| PLUG | Plug Power | 0.65 | 1.35 | – 51.9% | 0.68 |
| PRKR | ParkerVision | 1.41 | 4.90 | – 71.2% | 1.41 |
| PTRY | The Pantry | 12.52 | 25.97 | – 51.8% | 12.79 |
| RPRX | Repros Therapeutics | 0.65 | 1.35 | – 51.9% | 0.68 |
| RSCR | Res-Care | 10.56 | 17.13 | – 38.4% | 10.81 |
| SMTB | Smithtown Bancorp | 4.92 | 18.11 | – 72.8% | 4.95 |
| SUSS | Susser Holdings | 8.11 | 15.39 | – 47.3% | 8.29 |
| VIST | VIST Financial | 5.00 | 9.75 | – 48.7% | 5.00 |
| WSBC | WesBanco | 12.05 | 27.74 | – 56.6% | 12.10 |
| WFD | Westfield Financial | 7.85 | 10.50 | – 25.2% | 8.01 |
| OTCBB | |||||
| MDVX | Modavox | 1.22 | 4.38 | – 72.1% | 1.42 |
| MMTIF | Micromem Technologies | 0.51 | 1.75 | – 70.9% | 0.65 |
| SPLM | Sentry Petroleum | 0.56 | 3.04 | – 81.6% | 0.60 |
| TNUS | Total Nutraceutical Sol | 0.11 | 1.31 | – 91.6% | 0.25 |
STANDARD TRADING GUIDELINES - DO NOT APPLY!
YOU ARE ON YOUR OWN TO DETERMINE YOUR ENTRY & EXIT POINTS.WE WILL NOT BE UPDATING INDIVIDUAL FREE LUNCH STOCKS.
Please Trade Carefully.
Jeffrey A. Hirsch, Editor
The next ETF Lab issue will be available after the close on January 7, 2010.
The next Almanac Investor issue will be available after the close on January 14, 2010.
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