January could be a good month for investors, if it’s up to stock market expert Geert Schaaij. The winner of two Gouden Stier Awards for best investor has some valuable tips ready.
Schaaij van Beursgenoten selected no less than four very promising stocks. He expects that they can already show a nice increase in the coming weeks. He calls it the ‘January effect’. “We are very successful at this every year and I am convinced that our approach with the so-called gems can lead to a great new year and that is one reason why I have won that award twice.”
But how do you determine which stocks qualify for that January effect? Which stocks are strong contenders to rise? “That is simpler than it seems,” says Schaaij convincingly. “A few weeks before the end of the year, all institutional investors close their books because they are going on vacation, but also because the reporting has to be made. Banks and most asset managers are also closing their offices or sitting there with one and a half men and a horse’s head. No new positions are taken. And then opportunities arise.”
Prices slip away unnoticed
This of course requires some explanation and Schaaij provides it. “Companies that came up with the third-quarter figures will not be looked at for a while. Prices can then slip away unnoticed. For example, we saw that an institutional party issued a price target for Ordina of €5, while the price at that time was €4. A nice recommendation with an up-site of almost 25%. Fellows on the exchange does not have a holiday and always has the radar on. We now note that the share is kind of ‘forgotten’ and the price has fallen by almost 15% to € 3.50. So the up-site is now even bigger!”
Stock exchange peers continuously monitors for subscribers whether there is reason to revise their buying advice. “Then you check, double check and check again,” says Schaaij. “And then you come across the fact that the sector is doing more than well. This was confirmed this week in the case of Ordina. Accenture – a sector colleague of Ordina – came up with good figures. Organic sales growth was 22 percent, raising the forecasted growth for full-year 2021. The share price on Wall Street rose by more than 6 percent. And when it rains at one, it drips at the other. So Ordina is definitely an opportunity. You can download Ordina’s report here for free.”
While analysts and asset managers are already lazing around and in the Christmas spirit, according to Schaaij, Beursgenoten is starting 2022 with fresh courage. “We go through our own recommendations, look at new updates for clients and their positions. And we see Ordina as a very good contender for the so-called ‘January effect’.”
Schaaij’s motto is ‘one share is no share’ and has therefore selected four shares. “When anticipating a technical positive price reaction, we want to spread across several stocks.”
Curious, we ask Schaaij to give another example. “Naturally. I never act secretive,” he says. “I put the analysis of all four stock tips that qualify for the January effect in a report and you can just download that report.
He briefly gives an analysis of Boskalis. “In the case of Boskalis, the stock market year 2021 can be cut into two parts. In the spring, the share price performed well and was bought by everyone. The price rose nicely and steadily without any price explosion. Then the tide turned and the price slowly started to fall.”
But according to Schaaij there is nothing fundamentally wrong with this share. Boskalis Westminster N.V. is a leading global service provider whose activities are divided into four clear sectors: dredging and barge infrastructure, offshore energy, towage and salvage. “Boskalis has closed a busy third quarter and everything indicates that the fourth quarter of 2021 will also have a more than encouraging course,” said the stock market expert.
“Their order book stood at the gigantic amount of 5.1 billion euros at the end of September and the order book is therefore very well filled. Such a well-filled portfolio provides a solid basis for the rest of the financial year and the periods thereafter. The reddit ipo date is found online. Sooner or later, the strong fundamentals will inevitably lead to a rediscovery of this company by investors, allowing speculation on the January effect and higher price targets in the current price weakness.”
The other two stocks of the four to which Schaaij refers have also been extensively analyzed in the aforementioned report. “We would like private investors to read carefully whether they agree with us they agree on their substantiation,” says Schaaij. “Public peers propose, but the reader decides.”