Nasdaq 100 Watch List

It is the firm belief of the New Low Observer team that anyone who does not investigate and acquire at least one of these stocks is, in our opinion, missing the sale of the decade. While the debate about nationalized healthcare begins to wane, there will be a palatable realization that the medical sector was unduly suppressed. Below I will feature BIIB and GILD. However, let's look at the Nasdaq 100 stocks that are within 20% of their 52-week low.

Nasdaq 100 Watch List (Yahoo!Quote Summary View):

  • Stericycle (SRCL) at $53.17
  • Gilead Sciences (GILD) at $43.83
  • Genzyme Corp. (GENZ) at $54.50
  • Cephalon, Inc. (CEPH) at $54.02
  • Biogen Idec (BIIB) at $43.81
Today’s watch list has the addition of Biogen Idec (BIIB). According to Valueline, BIIB has a historical mean price-to-cash flow of 12x. Based on the 2008 per share cash flow of $4.31, BIIB should revert, at some point, to the mean price of $51.72. At $43.81, BIIB is trading 18% below the mean price.

Below is the Coppock Curve for Gilead Sciences (GILD). The Coppock Curve is intended to provided the best risk-adjusted buy signal. If you review the price of the stock and have a short time frame, the buy signals were, at times, alarmingly accurate.

Using Yahoo!Finance's long term chart for GILD, we see the following prices for the above buy signals:

  • May 1994 at $0.48
  • Jan 1997 at $2.03
  • Aug 1998 at $1.14
  • July 2009 at $48.93

The fact that the stock trades below the July buy signal bodes well for those willing to investigate the qualitative elements of GILD. Touc.

Disclosure: Long CEPH

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