#high fliers

Wrangell–St. Elias National Park & Preserve is a vast example of arctic wilderness.

I ask because I really, really, love the L&YR 7 Class

‘The Diabolical’ UK DVD and theater dates

A film that was high on praise from many at the FILM4 FRIGHTFEST is the Ali Later starring THE DIABOLICAL. The feature is set to make it’s run in theaters and on DVD here in the states soon and we now know when our buddies across the pond will get their chance. Content Media will be releasing THE DIABOLICAL in UK cinemas and VOD on October 16th followed quickly by a DVD release on the 19th. Read…

New Post has been published on http://tradingreview360.com/facebook-wont-see-a-bounce-from-joining-the-nasdaq-100/

Facebook Won't See a Bounce From Joining the Nasdaq-100

[Stocks Technical Analysis] TradingReview360.com: We aim to locate the best posts from all over the world. The following article is useful for those interested in Trading Penny Stocks.

Warning: Penny stock/ micro-cap trading has high potential risk and should not be attempted until a full understanding of them is attained.

Read on to learn more:

Wondering whether Facebook (NASDAQ:FB) stock will see a pop when it is added to the Nasdaq-100 Index on Dec. 12?

Allow me to answer that question based on the historical data: There’s a very good chance it will not.

If anything, joining the NDX could mean declines for Facebook stock.

I looked at a list of recent Nasdaq-100 additions – 18 changes in the last two years, not including Kraft, which recently split – and the lion’s share of the picks have underperformed the market since joining the index.

Here are the highlights:

A Handful of High Fliers: Pharma player Alexion (NASDAQ:ALXN) and organic grocer Whole Foods (NASDAQ:WFM) have blown up since joining the Nasdaq-100, trouncing the index more than four times over. Also of note is discounter Dollar Tree (NASDAQ:DLTR), which has doubled the NDX since it joined the benchmark.

But That’s the Exception: Unfortunately, beyond these three stocks, only a handful of other picks have outperformed. Electronics stock Avago (NASDAQ:AVGO), satellite radio stock Sirius XM (NASDAQ:SIRI) and media mogul Viacom (NASDAQ:VIAB) are the only other ones that beat the index, even marginally.

A Majority Underperform: Simple math means that 12 of 18 stocks failed to beat the market. Some only lagged marginally, such as semiconductor stock Texas Instruments (NASDAQ:TXN), which is off 5% since joining earlier this year vs. a flat NDX. But some are pretty ugly.

The Worst Underperformers Are Quite Ugly: And of course it’s worth noting that to offset the three high fliers, there are twice as many stocks that have lost 25% or more since joining the index – led by the horrible returns of -56% in Chinese travel site Ctrip.com (NASDAQ:CTRP), -53% in streaming video provider Netflix (NASDAQ:NFLX) and -49% in Keurig company Green Mountain (NASDAQ:GMCR). When you consider that Netflix and GMCR both have rallied dramatically in recent weeks to “improve” their returns, it is even more disturbing how much recent additions can flop.

Past performance is no guarantee of future returns, as the old saying goes. But those expecting a big bounce for Facebook simply due to news it will join the NDX in the coming days should keep this track record in mind.

Related Reading

Jeff Uscher says $7.50 is fair for Facebook stock – a roughly 70% crash. (Money Morning)

Are shares safe now that the lockup is past? (Wall Street Cheat Sheet)

Options guru Ken Trester “likes” Facebook. (24/7 Trader via InvestorPlace)

Jeff Reeves is the editor of InvestorPlace.com and the author of “The Frugal Investor’s Guide to Finding Great Stocks.” Write him at [email protected] or follow him on Twitter via @JeffReevesIP. As of this writing, he did not own a position in any of the stocks named here.

Check out the original source here.

What Are Penny Stocks?

Penny stocks, also known as cent stocks in some countries, are common shares of small public companies that trade at low prices per share. In the United States, the SEC defines a penny stock as one that trades below $5 per share.[1] In the United Kingdom, stocks priced under £1 are called penny shares. In the case of many penny stocks, low market price inevitably leads to low market capitalization. Such stocks can be highly volatile and subject to manipulation by stock promoters and pump and dump schemes. Such stocks present a high risk for investors, who are often lured by the hope of large and quick profits. Penny stocks in the USA are often traded over-the-counter on the OTC Bulletin Board, or Pink Sheets.[2] In the United States, the Securities and Exchange Commission and the Financial Industry Regulatory Authority (FINRA) have specific rules to define and regulate the sale of penny stocks. [edit]