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||P/B||% from low|
|WCRX||Warner Chilcott plc||11.47||10.07||1.14||0||13.28||0.35%|
|BBBY||Bed Bath & Beyond Inc.||57.1||13.27||4.3||-||3.31||0.67%|
|FFIV||F5 Networks, Inc.||82.59||23.94||3.45||-||5.1||1.87%|
|APOL||Apollo Group Inc.||19.78||5.69||3.48||-||2.43||3.13%|
|ATVI||Activision Blizzard, Inc.||11.16||15.9||0.7||1.6||1.18||4.00%|
|VOD||Vodafone Group Public Limited Company||26.91||12.29||2.19||7.4||1.1||4.99%|
|FLEX||Flextronics International Ltd.||5.74||7.81||0.74||-||1.61||5.32%|
|MCHP||Microchip Technology Inc.||32.14||20.75||1.55||4.4||3.12||6.32%|
|EXPD||Expeditors International of Washington Inc.||36.91||21.97||1.68||1.5||3.83||7.92%|
|AMAT||Applied Materials Inc.||10.81||12.98||0.83||3.3||1.62||8.43%|
|MRVL||Marvell Technology Group Ltd.||7.98||10.22||0.78||3||0.94||9.02%|
|DLTR||Dollar Tree, Inc.||39.59||17.63||2.24||-||6.11||9.85%|
|MNST||Monster Beverage Corporation||44.03||24.6||1.79||-||6.68||9.91%|
Watch List Summary
The top stock on our list is Warner Chilcott (WCRX). On April 30, 2012, we recommended that investors sell WCRX after a +50% increase in the stock price from our December 16, 2011 watch list. Since our recommendation to sell WCRX, the stock has declined -47.41%.
We believe that WCRX will declined to the $10 level before it is worth reconsidering the value attributes of this company.
On January 12, 2012, we assessed the points at which an investor could take advantage of the decline of NetApp (NTAP). At the time, NTAP was trading at $36.85 and we suggested that the stock would be a good buy at $30 and $23.47. Afterwards, NTAP increased +34.5% to the March high and the fell below the Jan. 12th price. After falling slightly below the $30 level, NTAP rose +20% to the September high. Anyone who has not participated in the $30 purchase price can do so at the current price and potentially at the $23.47 level.
Nasdaq 100 and Apple Inc.
The most important aspect of the movement of the Nasdaq 100 (NDX) is the impact that Apple Inc. (AAPL) has on the index. Below you can see a comparison between the index and the stock.
The high level of correlation that exists between the Nasdaq 100 and Apple, since mid-2011, suggests that the tail is wagging the dog and should result in the index declining further if any negative news comes from Apple. Strictly from a technical standpoint, it would not be unusual for AAPL to retest the May 2012 lows before recovering in price. In addition, we believe that Apple Inc. could retest the conservative downside target of $312.87 based on the revised Speed Resistance Line below:
In order to understand where the Nasdaq 100 might go, consideration of Apple Inc. (AAPL) is required.
Watch List Performance Review
In our ongoing review of the Nasdaq 100 Watch List, we have taken the stocks from our list of November 4, 2011 (found here) and have checked their performance one year later. The top five companies on that list are provided in the chart below from November 4, 2011 to November 2, 2012.