Wednesday, December 28, 2011

Official Green Baron January Effect Stock Selections for 2012

Four Stocks to Choose From and One Honorable Mention!

At some point over the past few years, we have issued independent reports on our January Effect selections as either a “Stock Alert” or a “Stock Pick”.  All of these companies have no idea we selected them or we were planning to select them as our new January Effect stock picks.  We based our decision making purely on price action, recent news, and possible fundamental news that could occur in January.

Last year, we chose two stocks: Freedom Environmental (FRDM) at .014 per shares and Bulova Technologies Group (BLVT) at .07 per share, and predicted each would rally at least 100% by January 31.  FRDM hit a high of .064 up as much 357% and BLVT hit a high of .14 up exactly as much as 100%.

This year we are doubling the number of January Effect Green Baron stock picks to four.  Again, we predict that each will rally at least 100% by January 31, 2012.  Can we do it again with twice as many picks?  It is a bold prediction, but we are confident that yet again we will be right, and our members stand to make a fortune.

Definition of The January Effect:

The January Effect is a calendar-related anomaly in the financial market where financial security prices increase in the month of January. This creates an opportunity for investors to buy stock for lower prices before January and sell them after their value increases. Therefore, the main characteristics of the January Effect are an increase in buying securities before the end of the year for a lower price, and selling them in January to generate profit from the price differences.

The most common theory explaining this phenomenon is that individual investors, who are income tax-sensitive and who disproportionately hold small stocks, sell stocks for tax reasons at year end (such as to claim a capital loss) and reinvest after the first of the year.  Another cause is the payment of year-end bonuses in January.

1. Bohai Pharmaceuticals (BB: BOPH - .40) – In January, 2011, we released a report on BOPH at about $1.55.  The stock rallied in just a few days to as high as $2.21.  However, weakness in Chinese based companies for most of 2011 and a lack of new investor awareness helped cause BOPH to underperform all year.  Despite strong earnings that have the stock trading at about 1 X’s earnings (yes, that’s right we said 1 times earnings), BOPH sold off heavily at year-end.  This stock is the ideal candidate for a strong move up in January.

2. Aspire International (OTCPK: APIT - .205) – We have correctly predicted moves up in APIT several times over the past few years.  After hitting .55 per share during the summer last year, APIT struggled as it failed to report quarterly numbers.  The stock held steady in December, but that was after a steep decline in previous months.  We are impressed by the Company’s new website at www.mygos.net and believe that this division continues to add significant revenues and profits to its balance sheet.  Although we cannot predict when financials will be reported, we do believe they should come soon and the stock will bounce back above .40 by January 31.

3. Nuvilex, Inc. (OTCQB: NVLX - .0425) – Last year’s “Stock Pick of the Year” rallied huge after we selected it in May, but struggled to break out again all year.  We thought the merger with SG Austria would be completed months ago, but maintain it will still happen soon.  We sincerely believe NVLX could rally above .10 by the end of January if the merger closes.  Even if it takes longer, NVLX should get back above .07 over the near-term based on several very positive press releases it issued over the past 30 to 60 days.

4. Sillenger Exploration (OTCQB: SLGX - .015) – This mineral exploration company rallied back in 2010 after we selected it, but fell apart as it could not live up to its billing. It appears to us that Sillenger has a very good chance to completely turn around.  On November 30, 2011, it was announced that Sillenger entered into a mineral, hydrocarbon and water exploration contract with the Government of the Republic of Benin.  The share count on SLGX has remained low and the upside of its recently announced agreement could be substantial.  We also believe weak shareholders sold all or most of their holdings during the last several months, which opens the window for this stock to easily rally 100% by the end of January.  

• Santa Fe Gold (BB: SFEG - .88) – Although SFEG is not an official January Effect stock pick since it may be challenging to rally a full 100% in 30 days, news announced yesterday was fantastic and will help its balance sheet considerably.  Santa Fe Gold announced it successfully retired high interest debt and was able to raise cash to complete an acquisition as opposed to issuing more stock.  SFEG could easily rally 50 to 100% in January after investors realize what just happened.