The last few months have been a bit grueling. Work, Holidays, Dates, Travel, etc. Regrettably there hasn’t been too much time to study the market. I made a a couple plays during the end of 2010 but they were all big losers (CSCO Jan ’11 Calls, GRYE mostly). I disobeyed the #1 rule of trading IMO – ALWAYS DO YOU OWN DUE DILIGENCE. I made one pick based off of a pump and dump Newsletter and another off of a hasty reaction to a earnings report. ALWAYS DO YOUR OWN DUE DILLIGENCE – can’t stress it enough when making stock picks. Just because you read something somewhere that says a stock has a target of $20 when it currently trades at $12 doesn’t mean its going to get there. The information is only as good as its source. Trust yourself with your decisions and learn from your own mistakes.

With that said – CTeezy and I finally found some time to sit down and crunch through some stocks last night. January is one of our favorite months to trade because, much like your local mall, many items can be had for bargain basement prices. A lot of stocks get sold off towards the end of each year for tax purposes. Short sellers know this occurs and pile on to drive stocks down even further. No big deal to the longs though, they get a bigger tax break by selling before December 31st then just have to wait 30 days to buy back their shares at lower prices the following calendar year. Its like riding a ferris wheel 2 times but only having to take the big drop once…

Ok enough blabbing – here are your “2011 Bounceback Canditates”:

GAPTQ – The Great Atlantic & Pacific Tea Company

My favorite pick. We’re talking about a small grocery company founded in 1859. Places like this usually find ways to make it out of hard times. Either that or they merge with another medium sized company (a la the Kmart \ Sears merger). Down over 90% after filing for Chapter 11 bankruptcy back in Decmeber, the company is now in stages of restructuring. They may close some stores but should still make themselves attractive enough to get by. Rumor is they’ve made some bad decisions in the past that , if corrected, will save the company a lot of money. Either way, I like the chances of this stock to rebound enough to warrant a recovery.

CNST – Constar International Inc.

The name of this company should be the name of the newsletter that recommended its readers buy GRYE last November … but actually Constar may be able to bounceback in 2011. Constar is in the packing industry and recently have filed for bankruptcy. They’ve already been told by the NASDAQ that they would be delisted on January 20th and I’m waiting for that to occur before buying. Constar hit a new 52W low of .42 on January 18th. I may wait a few more days to see if it bottoms out further once it hits the OTC or Pink Sheets.

ESLRD – Evergreen Solar Inc.

Another company beaten down recently the last 6 months. Any investor that bought this stock last year hoping to catch that next “green solar stock” probably suffered some losses so why not sell, lock in some losses then buyback in 2011 for less. Not like green technology has really taken over yet, right? I like this one as a quick runner back too the $6s soon … Solar companies are going to keep getting tax cuts as long as our government keeps pushing for alternative energy solutions

Note: I may be long, short, or hedged with any of these securities at anytime. I post my thoughts here as a learning tool for myself and hopefully others too. Always do your own research before making your own trades!