5 Stocks for the January Effect

Stock #4: K12 Inc. (LRN)

With two young children starting their schooling, I am keenly aware of the challenges
facing the public school system. Budget shortfalls, increasing class sizes and teacher
shortages make for a difficult environment. K12 Inc. (LRN)
is keenly aware of these issues and hopes to attract parents like me to become customers
of its online education programs.

One of the few initial public offerings done in late 2007, LRN has lost half its
value over the last year. The company has a great business model and pristine balance
sheet. It is just the type of company that can move sharply higher due to the January
effect.

Next:
Stock #5 – ShengdaTech Inc. (SDTH)