Nasdaq 100 Watch List: June 20, 2012

Below are the Nasdaq 100 companies that are within 10% of their respective 52-week lows. Stocks that appear on our watch lists are not recommendations to buy. Instead, they are the starting point for doing your research and determining the best company to buy. Ideally, a stock that is purchased from this list is done after a considerable decline in the price and rigorous due diligence.

Symbol Name Price P/E EPS Yield Price/Book % from Low
EA Electronic Arts Inc. $12.66 55.04 0.23 0 1.65 3.77%
DELL Dell Inc. $12.30 7.02 1.75 0 2.29 5.31%
CHKP Check Point Software $50.55 19.08 2.65 0 3.14 5.78%
SYMC Symantec Corporation $15.03 9.57 1.57 0 2.12 5.85%
CHRW CH Robinson Worldwide $59.31 22.12 2.68 2.2 7.8 6.14%
INFY Infosys Ltd. $43.95 14.65 3 1.8 3.84 6.16%
MRVL Marvell Technology Group $12.01 12.86 0.93 2 1.38 6.95%
CTRP Ctrip.com International Ltd. $17.54 16.78 1.04 0 2.19 7.94%
RIMM Research In Motion Limited $10.33 4.65 2.22 0 0.55 7.94%
TEVA Teva Pharmaceutical Industries $37.78 11.74 3.22 2.1 1.44 7.94%
EXPD Expeditors Int'l of Washington $39.90 23.06 1.73 1.4 4.08 7.95%
SPLS Staples, Inc. $13.03 9.35 1.39 3.5 1.25 9.13%
WYNN Wynn Resorts Ltd. $104.89 22.24 4.72 2 47.38 9.47%
APOL Apollo Group Inc. $33.96 7.39 4.6 0 3.79 9.80%

Watch List Summary

In our last summary dated June 8, 2012 (found here), we referred to the struggle that we were having in not purchasing NVIDIA (NVDA).  Since that posting, NVDA is up +9.24% (all within the last 3 days) on news that their chips will power Microsoft’s new tablet PC.  We’re not sure that the latest news is going to catapult NVDA as high as the last 120% run after being on our list, however, we believe the chip stocks on the Nasdaq 100 should be closely followed and accumulated over time.

Marvell Technology (MRVL) is another chip manufacturer that is on our radar.  According to Yahoo!Finance, Marvell, “…designs, develops, and markets analog, mixed-signal, digital signal processing, and embedded and standalone ARM-based microprocessor integrated circuits. It offers mobile and wireless products comprising communications processors; modem processors; Wi-Fi and other communication protocols, including Bluetooth and/or FM; mobile computing products; and connected home computing products.”

Dow Theory suggests that the following are the downside targets for Marvell:

  • $10.61
  • $7.54
  • $4.47

So far, Marvell has fallen within 6% of the $10.61 target, however, it has not breached that point thus far.  We’d be buyers of the stock at $8.25 with little regard for downside risk at that point in time.

In a follow-up to a previous piece on Wynn Resorts (WYNN), dated January 20, 2012 (found here), we indicated that Wynn, at $115.47, was likely to decline to $74. 76.  So far, WYNN has managed to decline to the $105 level.  Although the path hasn’t been straight down we are confident that this stock will come through on our downside projections.

Watch List Performance Review

In our ongoing review of the Nasdaq 100 Watch List, we have taken the top 5 stocks from our June 17, 2011 Nasdaq 100 Watch List (found here). The top 5 companies from the watch list are provided below with the closing price from June 17, 2011 to June 17, 2012.

Symbol
Name 2011 2012 % change
URBN Urban Outfitters, Inc. 28.27 27.51 -2.69%
MRVL Marvell Technology 13.79 11.46 -16.90%
CSCO Cisco Systems, Inc. 15.05 17.1 13.62%
RIMM Research In Motion 35.33 10.89 -69.18%
SPLS Staples, Inc. 15.05 12.67 -15.81%
Average -18.19%

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The top five from our watch list from last last year got blown away by the Nasdaq 100 Index, in the end.  The index went up while the stocks, as a group, went down.  The Nasdaq 100 index outperformed the top 5 by 36.78%.  Amazingly, the top five achieved our minimum goal of +10% gains within the first three months.

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