The scene is set. All over the world, families gather, Christmas trees twinkle and the streets bustle with last-minute shoppers and revelers enjoying themselves.
American investors have particularly good reasons to feel festive. US markets have soared in 2023, fueled by better-than-expected economic data and a recovery from titans like Amazon, Apple and Facebook owner Meta.
The tech-focused Nasdaq index is up more than 40 percent, and even the more traditional S&P 500 is up nearly 25 percent since January.
Strong performance: drug testing specialist hVivo was one of Midas' top tips for 2023
Most European markets have also done reasonably well, with the French and German indices up more than 15 percent over the past twelve months.
UK shares have performed poorly in comparison. Our FTSE 100 index of Britain's largest listed companies is little changed this year, while the junior AIM market has collapsed by more than 10 percent and is now little higher than in the darkest days of the Covid pandemic.
Why should this be so? Are British companies significantly worse than their American or continental counterparts? Are they less enterprising? Are their bosses slower and lazier?
No, no and no again. Instead, our markets are suffering from a sour cocktail of apathy, disillusionment and short-sightedness. Nervous investors have sold shares at the slightest sign of trouble – or even sooner – creating a downward spiral that has drawn in far too many plucky British companies.
Fortunately, a number of companies have managed to escape the prevailing malaise. Midas shares have largely beaten the market, some by a significant margin.
And optimism for the future can even be seen in companies whose shares have been treading water for months. These companies are focused on day-to-day business and determined to achieve results. Their efforts should be rewarded as sentiment changes.
Good news
For our part of the year, that shift has already begun. A drug testing specialist, hVivo, was one of Midas' top picks for 2023. The price has more than doubled, from 10 cents to 22 cents over the year.
The company conducts so-called human challenge studies, in which healthy volunteers are given doses of potential new drugs to see if they work. The trials are conducted in quarantine conditions and are intended to bring new products to the market more quickly.
Under CEO Mo Khan, hVivo has had a stormy 2023.
Days ago, Khan revealed that this year's results should be above expectations, while 2024 will be even better.
The company has just been awarded a prestigious testing contract worth £17 million and will open a new state-of-the-art quarantine facility next year so it can carry out more testing and increase annual turnover.
The new unit, in London's Canary Wharf, will be funded almost entirely by customers, a sign of how much they value hVivo's work.
Tangible evidence of the company's contribution to new medicines emerged earlier this year. After using an hVivo test on humans, pharmaceutical giant Pfizer received approval for the world's first vaccine against RSV, a flu-like virus that can be fatal to young children and the elderly.
The drug will now be on the market much sooner than without hVivo's help, potentially saving thousands of lives.
Trials are also being conducted against several other diseases, including flu, malaria and HMPV, a new virus that can be serious among people with low immunity.
A trading update in January should give investors new courage and brokers expect strong and continued growth in sales and profits. Khan even paid a special dividend of 0.45 cents earlier this year – more of the same may be on the cards.
Midas judgment: hVivo has delivered great results for shareholders and some may want to take a profit at 22 cents. But next year and beyond there is much more to be had from this stock. Supporting investors should stick with Khan and his team.
Traded on: AIM Ticker: HVO Contact: hvivo.com or 020 7756 0300.
Eden Research is another innovative British company whose shares have soared in recent months, rising 60 percent to 5.85p since Midas recommended them this summer.
The performance reflects a major change at this company, which makes pesticides that help crops grow without harming the environment.
This market is expected to be worth almost £8 billion by 2025, given growing concerns about the impact of chemical insecticides on consumer health.
Eden works with some of the industry's giants and just last week announced new approvals for a seed protection product developed in partnership with Corteva, one of the largest agricultural companies in the world.
More good news is expected in 2024 Eden shares should respond.
Traded on: AIMticker: EDEN Contact: edenresearch.com or 01285 359555
Small niche players aren't the only winners of 2023. Marks & Spencer has had a fantastic year, recommended at £1.46 in January and now 85 per cent ahead at £2.72.
After years of disappointment, M&S is starting to deliver what shoppers want – and investors are responding.
Profits rose 56 percent to £326 million in the six months to September, the dividend was reinstated for a penny and CEO Stuart Machin expressed his confidence in the company and reiterated his ambition to become Britain's most trusted retailer again become.
Sparkling again: Marks & Spencer has had a fantastic year
Changes have been made and more are coming, online and on the shop floor. M&S has long overpromised and underdelivered, and investors with long memories may have doubts about what lies ahead.
However, there are signs that things will be different this time, not least because retail veteran Archie Norman is chairman and a major reorganization is underway.
M&S shares I've had a great few months, but there should be more to come. This stock was above £7 in 2007, so there is still a long way to go.
ticker: MKS Traded on: Main Market Contact: corporate.marksandspencer.com or 020 7935 4422
Other notable winners this year include insurance specialist BP Marsh, up 20 percent, steelmaker Billington Holdings, up 15 percent and car rental and repair group Redde Northgate, up 13 percent.
This trio may be very different, but they have all exceeded market expectations this year and their shares have risen – proof that investors can and will respond to companies with consistent results and strong growth prospects.
…and not that good
There have been some losers too, most notably Pebble Group, which shocked the market last month with a profit warning and saw its share price fall more than 30 percent in response.
Pebble makes promotional items for major companies around the world, including Burberry, Michelin and Google.
Brands: Pebble makes promotional items for major companies around the world, including Burberry
However, CEO Chris Lee admitted that some customers, particularly technology and consumer companies, have placed fewer orders than expected, meaning sales and profits will be lower this year than last.
Midas recommended the shares at a price of 92 cents just weeks before Lee's unveiling, and shareholders have every right to feel insulted now that the shares are priced at 55 cents.
However, supporters are confident that Pebble's fortunes will recover and some brokers believe the stock will reach £1.50 in the coming months.
Lee is a determined individual, so all but the most cash-strapped investors should hold onto this stock for at least a while longer.
Traded on: AIM Ticker: PEBB Contact: thepebblegroup.com or 07500 124121.
Some links in this article may be affiliate links. If you click on it, we may earn a small commission. That helps us fund This Is Money and keep it free to use. We do not write articles to promote products. We do not allow a commercial relationship to compromise our editorial independence.