You read about it every year, and always there are skeptics, but in Q4 2011 to Q 2012 the “January effect ” rally for small cap and life science stocks were big winners. Why does this happen? Not so important just that it does happen. Here are our December focus picks (see earlier posts):
Company (Stock) Buy Price Current Price % Move
Albany Molecular (AMRI) 2.49 2.97 19.3%
Astex (ASTX) 1.63 2.08 27.6%
Dendreon (DNDN) 8 13.79 72%
Illumina (ILMN) 29 36.23 25%
SeraCare (SRLS) 2.95 3.09 4.3%
In addition we thought that the tools and diagnostics sector was oversold and on Dec.22 recommended that a bottoming process had begun with a rally in large caps tools/Dx players like Agilent (A), BioRad (BIO),ThermoFisher (TMO) and Life Technologies (LIFE). All of these stocks are up 10% or more.