In the UK, statistics have shown that shares rise in the month of December around 80% of the time, and hence the term 'Christmas rally' being widely used around this time of the year. With this in mind I thought I'd start early this year and compile a list of 10 shares I think could rise strongly between now and 1 January 2008.

Before I do that I would like to remind people that this is only a bit of fun. The shares listed are just my opinion and should in no way be construed as recommendations as I am not qualified to give financial advice.

Okay with that out of the way, here's my list of 10 shares that I believe will benefit from a Christmas rally this year (if we have one):

1. PartyGaming (PRTY) - 27.50p

This is a favourite long-term holding of mine because it's growing strongly even without the US business and if the gambling bill is ever overturned, which I think is inevitable at some point, this could easily go to 100p+. Shorter term I think this is grossly underpriced at current levels and with poker player numbers generally rising strongly during these months, I think this could well finish the year above 30p.

2. GKN (GKN) - 316p

This is a defensive share that has been knocked down quite a lot by the overall market weakness, but is a solid company with growing earnings and a growing dividend above 4%. Looks undervalued at these levels.

3. Vanco (VAN) - 156.75p

Vanco's share price has plummeted in recent months but long-term I still think it's a great company. Looks to be trading between 150p and 200p range so good value in my opinion at 156.75p.

4. CSR (CSR) - 611.50p

CSR came out with a great set of results recently and surged to 700p before being dragged back down to it's current level by overall market weakness. Great long-term share but think it could well rally strongly short-term if we get an end-of-year rally.

5. Carillion (CLLN) - 358.75p

Carillion is a solid defensive share that shows steady growth every year. Fallen back recently along with the wider market and looks very oversold on forward PE ratio of just 11.4 for next year.

6. William Hill (WMH) - 525p

Ladbrokes share price has been hit recently after reporting, which has affected William Hill, but this one has slightly better growth prospects and has a good dividend yield, so further downside is limited in my opinion.

7. Tanfield (TAN) - 150p

One of the best growth stocks on the London market, this is another company to be hit by the recent market weakness. Looks excellent value long-term, but even in short-term looks grossly undervalued.

8. BBA (BBA) - 211.75p

A very boring defensive share this one, having held it myself in the past, but at it's current price of 211.75p it's very good value trading on a forward PE ratio of just under 13 and offering a good dividend yield.

9. BT (BT.A) - 282.25p

BT is not forecast to grow much over the next few years but offering a projected yield of 5.7% in 2009 at current levels, and a forward PE of 11.5, this looks oversold in the short term and could well bounce back over 300p.

10. Lloyds TSB (LLOY) - 481.25p

A little but more risky this one with the current sub-prime crisis, but I think Lloyds will be less affected than Royal Bank of Scotland and Barclays, for example, and with a yield of over 7%, I think this could well bounce back strongly from current levels.

So there you go, there's my list of 10 shares. I shall report back early next year to see how this fictional Christmas portfolio has performed.

(Full Disclosure: Author owns shares in PartyGaming and Vanco).