Seasonality Study Finds Equities Extremely Attractive

Date : 12/04/2007 @ 9:45AM
Source : PR Newswire
Stock : Gigamedia Limited (MM) (GIGM)
Quote : 10.81  -0.12 (-1.10%) @ 8:00PM
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Seasonality Study Finds Equities Extremely Attractive

DUNCANVILLE, Texas, Dec. 4 /PRNewswire/ -- "We are entering what has historically been the best season to be invested in the stock market" according to a recent study of historical data by Joseph R. Dancy, Adjunct Professor at Southern Methodist University and fund manager of the LSGI Technology Venture Fund L.P.

Dancy noted that "When you examine historical data, the winter months have generated by far the strongest market returns. These returns have been consistent over time and even apply to international markets. The fact the data is so statistically significant over time should be of interest to anyone invested in the stock market."

Using quantitative screens Professor Dancy has identified several firms he thinks could be major beneficiaries of the seasonality trend identified in his study. Those firms include Art's Way Manufacturing Inc. (NASDAQ:ARTW), Arena Resources (NYSE:ARD), Natural Gas Services Group (AMEX:NGS), and Gigamedia (NASDAQ:GIGM).

The study found the summer months' returns have averaged so much less than those of the winter months that almost all of the stock market's long-term returns have been produced during the winter months, as well as the following:

-- The seasonality effect is present in both longer and shorter term market data, indicating the excess returns have not been arbitraged away in recent years. In theory the excess returns from this effect can still be exploited by active managers

-- The size of the seasonality effect historically has been quite significant -- larger than most other statistical related impacts examined -- and the impact compounds over time

-- The seasonality effect is present in all the major market indexes, even in international indexes, which indicates the effect is persistent, widespread and robust -- regardless of the cause

The study and findings can be found at: http://lsgifund.com/

About LSGI Advisors:

LSGI Advisors Inc. manages the LSGI Technology Venture Fund L.P., a Texas limited partnership. For more information please visit: http://lsgifund.com/

Email:

For More Information, Contact: Joseph Dancy, LSGI Advisors Inc. 972-780-1805 office; 214-263-5201 cell

DATASOURCE: LSGI Advisors Inc.

CONTACT: Joseph Dancy, LSGI Advisors Inc., +1-972-780-1805, or cell,

+1-214-263-5201

Web site: http://lsgifund.com/

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