5 Stocks for the January Effect

Stock #5: ShengdaTech Inc. (SDTH)

While much of the news late in 2008 focused on a U.S.-led collapse, some of the
biggest losers in the market during the year had to do with China. Markets fell
hard during the year, and any stock having anything to do with China took it on
the chin. That is certainly the case with specialty chemical company ShengdaTech
Inc. (SDTH). 

Shares of SDTH fell by some 80% over the last year as investors sold the stock in
droves.  Will they return in January? I think it is likely so. Things may seem
bad today, but growth economies across the globe will return to a more normal state
in due course. SDTH has some innovative technology that will play a central role
in that growth. I’d have no hesitation owning shares at current levels.

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