The indications in the final week of
January were that the economy was progressing to begin
2010, but only in comparison to the slew of bad news
that greeted the start of the previous year. There was
also the uncertainty of who would preside over that
future growth, at least south of the border. As a result
of the ongoing uneasiness in the economy, investors
throughout North America displayed pairs of very cold
feet, which showed themselves in uniformly downward
stock markets.

The S&P/TSX Composite Index slid at the end of the week
to 11,094.31, down 249.12, or 2.2%. The TSX Venture
Exchange closed the week and the month at 1,492.09, off
57.58 points, or 3.7%, over the previous five trading
days.

In New York, the Dow Jones Industrials experienced a
loss of 434.44 points, or 4.3%, to 10,067.33. The
broader S&P 500 was off 17.88 points, or 1.6%, on the
week to 1,073.85, while the tech-rich Nasdaq fell 58.44,
or 2.6%, on the week to finish at 2,147.35.

Economically speaking, Statistics Canada said Friday
that the country’s economy grew in November for the
third month in a row, growing by 0.4%. Elsewhere,
StatsCan said its Industrial Product Price Index fell
0.1% and its Raw Material Price index was down by 1.7%,
due to lower petroleum prices.

On the American side, the Consumer Confidence index was
released Tuesday by the Conference Board, and rose to
55.9 in January from 53.6 in the previous month, versus
forecasts for a reading of 53.5.

Elsewhere, new home sales unexpectedly fell in December.
The U.S. Commerce Department said sales slipped 7.6% to
an annual rate of 342,000 in December from an upwardly
revised November rate of 370,000. Economists were
expecting sales to edge up to 366,000 from the 355,000
originally reported for the previous month.

On Thursday, the U.S. government also released its
monthly report on orders for durable goods, a measure of
manufacturing. Durable orders rose 0.3% in December,
which was much less than the 2% that was expected.

GDP figures down south – well, went north, in the latest
quarter, growing 5.7%, much higher than expected.

The coming week is a fairly sparse one on both sides of
the border. Manufacturing figures for January roll in
from the States on Monday, while employment figures are
reported for both countries on Friday.

Of the four stocks under the microscope this week,
Kingsway Financial Services Inc. (TSX:KFS) fared best,
peaking at $2.07, before settling back at $1.68 on
Friday, still giving its investors a return of 16 cents
or 10.5%.

However, utilities firm U.S. Geothermal Inc. (TSX:GTH)
was not so fortunate, beginning the week at $1.60, and
actually rising to $1.65, but then plummeting as the
week wore on to close Friday at $1.35, down a quarter or
15.6%.

In the States, Mobile Media Unlimited Holdings Inc.
(PINK SHEETS:MMUH) slid 13.3% on the week to finish at
4.25 cents, despite reaching intraday heights around
nine cents, while miner Magnum D’Or Resources, Inc.
(OTCBB:MDOR) started the week at 80 cents, and climbed
to 86 cents at one point, before descending to 72 cents,
a dip of 10% on the week.

If you’d invested in all four stocks over the last week,
you’d have seen an average loss of 7.1%. However, if
you’d taken positions in each and sold at their
respective peaks, you’d have prospered an average of
32.6%.

In the first week of February – the week of Groundhog
Day — we turn the spotlight on miner Antioquia Gold
Inc. (TSX Venture:AGD) and energy up-and-comer Southern
Pacific Resource Corp. (TSX Venture:STP), and hope they
don’t see their shadows!

Down south, look for great things from A.C. Moore Arts &
Crafts Inc. (Nasdaq:ACMR) and consumer goods firm
Spectrum Group International Inc. (Pink Sheets:SPGZ).

A month of promise ended somewhat limply for indices on
both sides of the line, due mostly to consecutive weekly
declines. The S&P/TSX Composite Index finished the first
month of the year at 11,094.31, giving back 651.18
points or 5.5%.

The TSX Venture Exchange also had a downward month,
dropping 29.02 points, or 1.9%, to 1,492.09.

South of the border, the Dow Jones Industrials finished
at 10,067.33, erasing 360.72 points of its strength, or
3.5%, suffering its biggest monthly drop in the last 11
months.

Meantime, the S&P 500 index capsized 41.25 points, or
3.7%, to 1,073.85, while the tech-rich NASDAQ index
finished at 2,147.35, off 121.8 points, or 5.4%, from
New Year’s Eve.

One of the major factors weighing on the market
throughout January was the status of Ben Bernanke. The
Fed chair faced lawmakers aimed at either confirming him
for another term, but that was not yet confirmed until
soon before the end of the month.

Economically speaking, Statistics Canada reported that
employment unexpectedly fell by 2,600 in December. The
unemployment rate was unchanged at 8.5%. In the U.S.,
word came out that employers cut 85,000 jobs in
December, which was much worse than expected. The
unemployment rate held steady at 10%, as expected.

As mentioned, Statistics Canada said Friday that the
country’s economy grew in November for the third month
in a row, growing by 0.4% in November. In the States,
the hike was a 5.7% annual rate in the fourth quarter,
significantly higher than the 4.7% rate that was
expected by a consensus of economists surveyed by
Briefing.com. That’s compared to an increase of 2.2% in
the prior quarter.

Late in the month, Canada received another vote of
confidence as the International Monetary Fund raised its
2010 growth outlook for the country to 2.6%, positioning
it as one of the top performers among developed
countries for this year and next.

On the merger-and-acquisition front, the major story in
the first month of 2010 was Kraft’s (NYSE:KFT) proposed
successful bid for U.K. candy king Cadbury (NYSE:CBY).
At the end of the month, Kraft was seen to be running
the idea of the $18.7-billion U.S. takeover by Cadbury’s
shareholders, and was said to be confident of success.

After months of fierce resistance, Cadbury performed an
about-face to accept a “sweetened” takeover from Kraft
Foods Inc. — forming the world’s biggest candy company
once consummated.

Among the Canadian stocks we picked this month to do
great things, the leader was Kingsway Financial Services
(TSX:KFS) which climbed 10.5% from $1.52 to $1.68 in a
week, hitting an Intraday peak of $2.07, or 36.2% higher
than the previous Friday close.

Out of the American pack, financial institution TierOne
Corp. (Nasdaq:TONE) emerged with a vengeance, rising
from a January 15 reading of 71 cents, peaking during
the late portion of the month at $1.49 — exhibiting
growth of 109.8% — before settling down to a slightly
more realistic, but still robust 99.5 cents on Friday,
January 29, a jump of 40.1% over its target date.

It’s clear to see that the U.S. stocks took top prize
for performance this month. It’s been a wild month,
especially the last two weeks as North American markets
have been experiencing a significant correction. Looking
at technical indicators for both the Dow Jones
Industrial Average and the Canadian TSX Exchange, it is
clear that most indicators are showing the indexes as
oversold. It’s still too early to tell when bullish
sentiment will return, but it is clear from the
technical readings that most of the correction is behind
us, and the markets should begin to rebound shortly.

We have stayed quiet this past week as we waited out the
stock market correction, but with a feeling that greener
pastures are upon us, we have been digging aggressively
for some interesting Penny Stock Company Spotlights and
have found several candidates, both Canadian and U.S.
listed. Look for several new spotlights in February,
even as soon as next week.