I am just starting my annual portfolio of about 5 or 6 stocks that have been knocked down during the course of the year, with tax selling adding pressure.  The theory is that small cap stocks that performed poorly through tax loss season will rebound in the first couple of weeks in January - hence the "January Effect". This has been a very profitable trade in most years. So far I have only actually confirmed one stock to purchase - RFIL. I basically look for value type stocks that have been beat down (only micro-caps). Since this is only a two or three week trade (not an investment) I do limited research. I will be posting the other stocks here soon.

***Edit on December 11: I am adding these stocks to the January Effect Portfolio... JVA - LUNA - RFIL - INBK - OBCI

INBK - First Internet Bank is also a long term hold for us. This is my replacement for BOFI as it is much cheaper from the value side.