From: US GIO To: Undisclosed recipients:; Subject: GIO Trade Idea 12/5/2011: January Effect Date: Mon, 05 Dec 2011 15:38:49 +0000 Attachments: GIO_Trade_Alert_2011-12-05_(January_Effect).pdf Inline-Images: image005.png; image006.png Global Investment Opportunities Group (GIO) Opportunistic Investments December 5, 2011 TRADE ALERT: JANUARY EFFECT In the US. year end's a time ex holiday cheer. time with famiy. and for many investors. tax lost harvesting. Each year healing No December, ewestors look for nvestments that have declined that year to use the shed term losses against tax obligations. Likevase, this sell off creates an opportunity as it makes these stocks more atracevely valued, potentially resulting in outperformance ii January as investors return to market in the new year. Historic" this -January Effect' has impacted smaller market cap and low priced stocks most and while this has become a better known phenomenon over die years, small cap still tends to outperform large cap from m4-December to no-January (see that below). As with much of investing ths 6 not a science nor a guarantee but vie have included below a quantitative screen on the Russell 3000 Index that fit some of the criteria that typically make for good candidates. Please note these are not recommendations but rather a est of companies that meet the t0ll0W19 criteria: • Member of the Russell 3000 • Year to Date Total Return Less than -15% • Price between S5 and $15/share • Market Cap between S250mm and 558 • 3 Month Average Dady Volume Greater than 500k shares • 52 Week LOW after 6/30/2011 and off lows by no more than 15% • Covered by JPMSI wth a Neutral or OW rating Risks: • Past performance is not nchcatrve of future results. Russell 2000 vs. Russell 1000 10.00% 8.00% 6.00% 4.00% 2.00% 0.00% -400% w Small Cap vs. Large Cap 411, it it I I II #eiteettiessinte Son: elccenterg. %ale Imelestats. aim Dab Moon re tans Scat Do IS-an S.:fadyam tiveafie