Category Archives: Nasdaq 100 Watch List

Nasdaq 100 Watch List

Posted on February 5, 2011 by | Leave a comment
As with our most recent Dividend watch list (found here), the Nasdaq 100 watch list is ladened with biotechnology and pharmaceutical companies. From our experience, this indicates that the sector as a whole is reasonably undervalued.  We think that now is the time to selectively acquire as many of these companies as possible.  It is times like these that mergers, acquisitions and bidding wars should soon follow.

Below are the Nasdaq 100 companies that are within 20% of the 52-week low. This list is strictly for the purpose of researching whether or not the companies have viable business models. Although theses companies are very risky, they provide significant opportunity to outperform the market in the coming year.


Symbol Name Price P/E EPS Yield P/B % From Low
CELG Celgene Corp $51.29 27.28 1.88 0 4.42 6.81%
CEPH Cephalon $59.96 11.2 5.35 0 1.81 9.02%
QGEN Qiagen N.V. $18.48 29.06 0.64 0 1.77 9.61%
AMGN Amgen $55.20 11.52 4.79 0 2.16 9.83%
TEVA Teva Pharma. $54.10 16.65 3.25 1.30% 2.26 15.13%
CSCO Cisco Systems $22.05 16.09 1.37 0 2.73 16.05%
ATVI Activision $11.74 39.93 0.29 1.30% 1.31 17.52%
URBN Urban Outfitters $34.76 21.6 1.61 0 4.21 19.74%

Watch List Summary


The following is the order that we think the watch list companies might perform over the next year (from best to worst on a percentage basis) and our thoughts on the reasons why.
  • Celgene (CELG): Celgene has no debt, strong earnings growth, while the book value has increased nearly 50% in the last 5 years.
  • Urban Outfitter (URBN): This clothing retailer has no debt and a book value increase of nearly 24% in the last ten years. We do not expect the same growth rate of the book going forward since the fashion industry is so fickle.
  • Teva Pharmaceutical (TEVA): Although saddled with some debt, this Israeli based pharmaceutical company is undervalued on a cash flow basis by 23% according to Value Line.
  • Cisco Systems (CSCO): One drawback for Cisco Systems is its management team which appears highly compensated for lackluster performance in the stock price. Despite this concern, CSCO has reduced the shares outstanding by nearly 23% since 2001. However, this may be a result of the large amount of debt that has been taken on since 2006. Such borrowing may be prudent given the current low interest rate environment. The book value for CSCO has grown almost 12% annually over the last 10 years.
  • Amgen (AMGN): Amgen has reduced the shares outstanding by nearly 23% since 2002. Unfortunately, the share reduction has been at the expense of a nearly 250% increase of long-term debt in the same period of time. According to Value Line dated December 17, 2010, AMGN normally trades around 12 times cash flow. Using the most conservative numbers provided by Value Line, AMGN should be selling at $72 a share instead of the current price of $55.20.
  • Cephalon (CEPH): There is a severe disconnect with Cephalon and the stock market. CEPH shares trade at less than the 2001 high. According to Value Line, the annualized growth rate of the book value over the same period has been 26%. The company’s debt has remained relatively steady while the number of shares outstanding has grown by “only” 7.6% annually. CEPH should be selling for at least $76 if the numbers on this company are accurate.

Watch List Performance Review
In our ongoing review of the Nasdaq 100 Watch List, we have taken the stocks from our list of February 7, 2010 (article here) and have checked their performance one year later. The companies on that list are provided below with the closing price for February 5, 2010 and February 4, 2011.


Symbol Name 2010 2011 % change
SRCL Stericycle $52.00 $83.63 60.83%
QCOM QUALCOMM $38.04 $55.23 45.19%
FSLR First Solar $114.19 $157.94 38.31%
GENZ Genzyme $55.17 $73.40 33.04%
ATVI Activision Blizzard $10.21 $11.74 14.99%
ERTS Electronic Arts $17.26 $18.23 5.62%
GILD Gilead Sciences $46.38 $38.79 -16.36%
APOL Apollo Group $59.93 $42.14 -29.68%
Average 18.99%


Our watchlist from last year did quite well.  Only one in four stocks from our list registered losses.  Stericycle (SRCL), Qualcomm (QCOM), First Solar (FSLR) and Genzyme (GENZ) either matched or exceeded the returns of the Nasdaq 100 Index (QLD).

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Nasdaq 100 Watch List

Posted on January 8, 2011 by | Leave a comment
Below are the top Nasdaq 100 companies that are within 20% of the 52-week low. This list is strictly for the purpose of researching whether or not the companies have viable business models. These companies are deemed highly speculative unless otherwise noted.
Symbol Name Price P/E EPS Yield P/B % from Low
ISRG Intuitive Surgical $267.40 31.8 $8.40 - 5.26 8.68%
CEPH Cephalon, Inc. $60.32 11.3 $5.35 - 1.81 9.67%
CSCO Cisco Systems $20.97 15.4 $1.36 - 2.62 10.37%
APOL Apollo Group, Inc. $37.98 10.5 $3.62 - 4.30 12.54%
AMGN Amgen Inc. $56.98 12.3 $4.63 - 2.24 13.37%
ERTS Electronic Arts $16.05 - -$0.48 - 2.04 14.17%
QGEN Qiagen N.V. $19.32 30.4 $0.64 - 1.89 14.59%
TEVA Teva Pharma. $54.01 16.6 $3.25 1.30% 2.22 14.94%
VRTX Vertex Pharma. $36.16 - -$3.73 - 11.31 15.71%
GRMN Garmin Ltd. $30.53 8.3 $3.66 4.80% 2.10 16.93%
INTC Intel Corporation $20.66 11.2 $1.85 3.00% 2.43 17.39%
GILD Gilead Sciences $37.50 11.0 $3.42 - 5.36 18.18%
SHLD Sears Holdings $70.18 41.9 $1.68 - 0.94 18.53%
^NDX Nasdaq 100 2,276.70
***Read our Chapter 2 review of Seth Klarman's book Margin of Safety here***

Watch List Summary
From the current watchlist we are considering the prospects for Intuitive Surgical (ISRG), Intel (INTC) and Garmin (GRMN).  Garmin is interesting simply for the fact that the moving feast known as their dividend should be announced in the coming months.  We're curious if Garmin will eliminate, raise, lower or keep the dividend the same.  As has been the case in the last four years, Garmin has paid their dividend all at once.  This will be very interesting considering the 4.80% payment. 
In the Nasdaq 100 Watch List of 15 companies from December 12, 2010 to the closing price January 7, 2011, the average return from all of the companies was +3.65%.  This is compared to the NDX (Nasdaq 100 Index) which had a gain of +2.77%.
Dish Network (DISH) registered the largest gain of +12.45%. Adobe Systems (ADBE) rose 11.60% since December 12th.  Cisco (CSCO) came in third on the list with a gain of 6.45%.
Watch List Performance Review
In our ongoing review of the Nasdaq 100 Watch List, we have taken the top four stocks on our list from the closing price of January 7, 2010 and have checked their performance one year later. The top four companies on that list are provided below with the closing price for January 7, 2010 and January 7, 2011.

Symbol Name 2010 2011 % change
GILD Gilead Sciences 44.54 37.50 -15.81%
CEPH Cephalon, Inc. 63.01 60.32 -4.27%
GENZ Genzyme Corp 53.81 71.39 32.67%
APOL Apollo Group 60.50 37.98 -37.22%
Average -6.16%
^NDX Nasdaq 100 1892.59 2276.70 20.30%
Only one stock, Genzyme (GENZ), was able to to show a positive return.  This was of little consolation as the three other stocks on our watchlist fell, on average, -19%.  The Nasdaq 100 outperformed the watchlist with a gain of 20% in the last year. 
Disclaimer
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 extensive due diligence. We suggest that readers use the March 2009 low (or the companies' most distressed level in the last 2 years) as the downside projection for investing. Our view is to embrace the worse case scenario prior to investing. A minimum of 50% decline or the November 2008 to March 2009 low, whichever is lower, would fit that description. It is important to place these companies on your own watch list so that when the opportunity arises, you can purchase them with a greater margin of safety. It is our expectation that, at the most, only 1/3 of the companies that are part of our list will outperform the market over a one-year period.

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Nasdaq 100 Watch List

Posted on December 12, 2010 by | Leave a comment
Below are the top Nasdaq 100 companies that are within 20% of the 52-week low. This list is strictly for the purpose of researching whether or not the companies have viable business models. These companies are deemed highly speculative unless otherwise noted.

Symbol Name Trade P/E EPS Yield P/B % from Low
CSCO Cisco Systems, Inc. $19.70 14.44 1.36 0 2.46 3.68%
ISRG Intuitive Surgical, Inc. $260.07 30.95 8.4 0 5.1 5.70%
AMGN Amgen Inc. $53.89 11.65 4.63 0 2.11 7.22%
DISH DISH Network Corp $18.80 9.24 2.04 0 N/A 8.55%
APOL Apollo Group, Inc. $37.95 10.49 3.62 0 4.02 12.44%
ADBE Adobe Systems Inc $28.71 32.04 0.9 0 2.89 12.81%
TEVA Teva Pharmaceutical $53.80 16.56 3.25 1.40% 2.18 14.49%
CEPH Cephalon, Inc. $63.23 11.82 5.35 0 1.89 14.96%
SHLD Sears Holdings Corp $68.18 40.66 1.68 0 0.9 15.15%
GRMN Garmin Ltd. $30.23 8.26 3.66 4.90% 2.04 15.78%
FLIR FLIR Systems, Inc. $27.97 18.84 1.49 0 3.05 16.54%
GILD Gilead Sciences, Inc. $37.61 11 3.42 0 5.29 18.53%
HSIC Henry Schein, Inc. $59.90 17.35 3.45 0 2.31 19.23%
XRAY DENTSPLY Intl $33.12 17.92 1.85 0.60% 2.58 19.31%
CELG Celgene Corp. $57.46 29.01 1.98 0 5.1 19.66%

Watch List Summary

In the Nasdaq 100 watch list of 17 companies from November 26, 2010 to the closing price of December 10, 2010, the average return from all of the companies listed was +3.21%. This is compared to the NDX (Nasdaq 100 Index) which had a gain of +2.85%.
Apollo Group (APOL) registered the largest gain of +10.13% in defiance of any suggestion by us that it was going to be dropped from the Nasdaq 100.  Apollo Group's ability to stay in the Nasdaq 100 (article link) is in stark contrast to rival for-profit education company Corinthian Colleges (COCO) which was dropped from the S&P MidCap 400 Index down to the S&P SmallCap 600 Index on Thursday December 9, 2010 (article link).  Microsoft (MSFT) and Teva Pharmceutical (TEVA) rounded off the top three performers with 7.77% and 6.81% gains, respectively.
Dish Network (DISH) and Gilead Sciences (GILD) were the only two stocks with declines of less than -1.20% each.

Top Five Performance Review

In our ongoing review of the Nasdaq 100 Watch List, we have taken the top five stocks on our list from the closing price of December 11, 2009 and have checked their performance one year later. The top five companies on that list are provided below with the closing price for December 11, 2009 and December 10, 2010.

Symbol 2009 2010
change
Genzyme Corp. 49.74 69.82
40.37%
Apollo Group 56.58 37.95
-32.93%
Cephalon 58.94 63.23
7.28%
Electronic Arts 16.11 15.82
-1.80%
Gilead Sciences 46.42 37.61
-18.98%
Average
-1.21%
Nasdaq 100 1792.06 2215.34
23.62%

As a group, the top five companies on our Nasdaq 100 list watch list averaged a loss of –1.21% in the last year. This compares with the Nasdaq 100 Index gain of 23.62% in the same one-year time frame. It should be noted that Genzyme (GENZ), Apollo Group (APOL), Cephalon (CEPH), and Electronic Arts (ERTS) gained 10% in the first 41 days of the watch list posting. This equals approximately 80% annualized returns if sold at the 10% mark. As we continually state, if you can beat historical market gains in less than a year then it may be worth seeking out any viable alternatives from the most recent watchlist.

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Nasdaq 100 Watch List

Posted on November 26, 2010 by | Leave a comment
Below are the top Nasdaq 100 companies that are within 20% of the 52-week low. This list is strictly for the purpose of researching whether or not the companies have viable business models. These companies are deemed highly speculative unless otherwise noted.

Symbol Name Price P/E EPS Yield P/B % from Low
APOL Apollo Group, Inc. $34.46 9.53 3.62 0 3.75 0.76%
CSCO Cisco Systems, Inc. $19.46 14.27 1.36 0 2.4 1.46%
ISRG Intuitive Surgical, Inc. $257.08 30.6 8.4 0 4.92 4.48%
AMGN Amgen Inc. $53.83 11.64 4.63 0 2.12 7.10%
TEVA Teva Pharma.  $50.37 15.5 3.25 1.40% 2.07 7.19%
DISH DISH Network $19.01 9.34 2.04 0 N/A 9.76%
ADBE Adobe Systems $28.40 31.7 0.9 0 2.84 11.59%
MSFT Microsoft Corp $25.37 10.91 2.33 2.50% 4.58 11.61%
SHLD Sears Holdings $66.22 27.13 2.44 0 0.84 11.84%
GRMN Garmin Ltd. $29.40 8.03 3.66 5.30% 1.93 12.60%
XRAY DENTSPLY Intl $31.40 16.99 1.85 0.60% 2.43 13.11%
FLIR FLIR Systems, Inc. $27.62 18.6 1.49 0 2.93 15.08%
PAYX Paychex, Inc. $28.81 21.48 1.34 4.40% 7.1 16.88%
ATVI Activision Inc $11.74 40.76 0.29 1.30% 1.3 18.23%
HSIC Henry Schein, Inc. $58.21 16.86 3.45 0 2.2 18.55%
GILD Gilead Sciences, Inc. $37.78 11.05 3.42 0 5.28 19.07%
CTAS Cintas Corp $27.53 18.87 1.46 1.80% 1.61 19.18%

Watch List Summary
In the Nasdaq 100 watch list of 17 companies from November 10, 2010 to the closing price of November 24,2010, the average return from all of the companies listed was –0.05%. This is compared to the NDX (Nasdaq 100 Index) which had a decline of –1.55%. Urban Outfitter (URBN) carried our watch list by rising 15.42% while office supplies company Staples (SPLS) was not far behind with a gain of 9.05%.
The laggards from the November 10, 2010 watch list were Intuitive Surgical (ISRG) with a –7.51% decline followed closely behind by Apollo Group (APOL) which fell –6.46% in APOL’s long quest to find a bottom.
Although we often take an interest in stocks with a declining trend, Apollo Group (APOL), with a declining trend over 2 years long, has not found it’s way on our Speculative Observation list. On the other hand, the steady decline of Intuitive Surgical (ISRG) does warrant additional consideration. Intuitive Surgical (ISRG) has a Dow Theory fair value from the March 2009 low to April 2010 high at $154 with the support level of $256.12 recently broken, the only remaining support levels before the fair value level is $221.90 and $187.68.
Top Five Performance Review
In our ongoing review of the Nasdaq 100 Watch List, we have taken the top five stocks on our list from November 27, 2009 and have check their performance one year later. The top five companies on that list are provided below with the closing price for November 27, 2009 and November 24, 2010.
Name 2009 2010 1yr % change
Cephalon, Inc. 55.23 65.47 18.54%
Ryanair Holdings 25.83 30.99 19.98%
Gilead Sciences 45.56 37.78 -17.08%
Genzyme Corp 51.07 71.81 40.61%
Apollo Group, Inc. 55.76 34.46 -38.20%
Average 4.77%
Nasdaq 100 1765.46 2153.91 22.00%
Nasdaq Composite 2138.44 2534.56 18.52%

As a group, the top five companies on our Nasdaq 100 list averaged a gain of 4.77% in the last year. This compares with the Nasdaq 100 Index gain of 22% and the Nasdaq Composite gain of 18.52% in the same one-year time frame. Surprisingly, only one stock, Gilead Sciences (GILD), did not achieve 10% gains within the first four months.
Of the two companies that took large losses, Apollo Group (APOL) fell –38.20% while Gilead Sciences (GILD) fell –17.08%. It is worth noting that Apollo Group (APOL) will probably be dropped from the Nasdaq 100 index on December 10th thereby adding more downside pressure to the stock.
Disclaimer
On our current list, we excluded companies that have no earnings. 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 extensive due diligence. We suggest that readers use the March 2009 low (or the companies' most distressed level in the last 2 years) as the downside projection for investing. Our view is to embrace the worse case scenario prior to investing. A minimum of 50% decline or the November 2008 to March 2009 low, whichever is lower, would fit that description. It is important to place these companies on your own watch list so that when the opportunity arises, you can purchase them with a greater margin of safety. It is our expectation that, at the most, only 1/3 of the companies that are part of our list will outperform the market over a one-year period.
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Nasdaq 100 Watch List

Posted on November 10, 2010 by | Leave a comment


Watch List Summary

The companies on our Nasdaq 100 Watch List from October 18, 2010 have averaged a 6.36% gain in the intervening period.  In the same period, Oct. 18 to Nov. 9th (based on the closing price), the Nasdaq 100 has gained 3.46%.  FLIR Systems (FLIR) gained 9.93% while Intel (INTC) gained 9.52%.  When including the dividend paid by Intel, the stock increased in value by 11.13%  The laggard of the group was Apollo Group (APOL) with a decline of -1.15%.  The chart below shows all of the Nasdaq 100 stocks from October 18th.

Nasdaq 100 Watch List

Symbol Name Price P/E EPS Yield P/B % from Low
WCRX Warner Chilcott plc $20.89 10.28 2.03 N/A 2.66 5.67%
APOL Apollo Group, Inc. $36.84 10.19 3.62 N/A 4.01 5.80%
TEVA Teva Pharmaceutical In $50.81 15.64 3.25 1.40% 2.11 8.13%
ISRG Intuitive Surgical, Inc. $277.96 33.08 8.4 N/A 5.44 8.96%
AMGN Amgen Inc. $54.93 11.87 4.63 N/A 2.17 9.29%
PAYX Paychex, Inc. $27.77 20.71 1.34 4.40% 6.99 12.66%
XRAY DENTSPLY . $31.64 17.12 1.85 0.60% 2.49 13.98%
URBN Urban Outfitters, Inc. $33.27 21.65 1.54 N/A 4.07 14.61%
GRMN Garmin Ltd. $30.01 8.2 3.66 4.90% 2.04 14.94%
DISH DISH Network Corporation $19.91 11.94 1.67 N/A N/A 14.95%
ADBE Adobe Systems Incorporated $29.49 32.91 0.9 N/A 2.98 15.87%
PDCO Patterson Companies Inc. $28.22 15.25 1.85 1.40% 2.35 16.95%
SPLS Staples, Inc. $20.45 18.11 1.13 1.70% 2.32 17.19%
HSIC Henry Schein, Inc. $57.72 16.72 3.45 N/A 2.25 17.56%
FLIR FLIR Systems, Inc. $28.35 18.91 1.5 N/A 3.11 18.13%
ATVI Activision Blizzard, Inc $11.77 40.59 0.29 1.30% 1.33 18.53%
MSFT Microsoft Corporation $26.95 11.59 2.33 2.40% 4.92 18.57%
CTAS Cintas Corporation $27.62 18.93 1.46 1.70% 1.66 19.57%

Top Five Performance Review

In our ongoing review of the Nasdaq 100 Watch List, we have taken the top five stocks on our list from November 6, 2009 and have check their performance one year later. The top five companies on that list are listed below with the closing price for November 6, 2009 and November 9, 2010.
Name Symbol 2009 Price 2010 Price % change
Apollo Group APOL 55.99 36.84 -34.20%
Cephalon CEPH 58.26 65.23 11.96%
Genzyme Corp GENZ 52.28 70.65 35.14%
Phama. Prod. Develop. PPDI 19.26 25.79 33.90%
Gilead GILD 46.26 38.51 -16.75%
Average 6.01%
Nasdaq 100 1730.76 2176.88 25.78%
Nasdaq Composite 2112.44 2562.98 21.33%

As a group, the top five companies on our Nasdaq 100 list averaged a gain of 6.01% in the last year. This compares with the Nasdaq 100 Index gain of 25.78% and the Nasdaq Composite gain of 21.33% in the same one year time frame.  Of the two companies that took large loses, Gilead Sciences (GILD) appears the most appealing from a research standpoint. Apollo Group (APOL) appears unable to right itself due to signifcant governmental and industry pressures.
Disclaimer

On our current list, we excluded companies that have no earnings. 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 extensive due diligence. We suggest readers use the March 2009 low (or companies' most distressed level in the last 2 years) as the downside projection for investing. Our view is to embrace the worse case scenario prior to investing. The November 2008 to March 2009 time frame fits that description. It is important to place these companies on your own watch list so that when the opportunity arises, you can purchase them with a greater margin of safety.  It is our expectation that, at the most, only 1/3 of the companies that are part of our list will outperform the market over a one year period.

Please revisit New Low Observer for edits and revisions to this post. Email us.

* Warner Chilcott (WCRX) will be removed from our watch list due to the price decline associated with a special dividend (WSJ article link) paid in September 2010. A chart with the adjusted price after the special dividend is located here.

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Nasdaq 100 Watch List

Posted on October 18, 2010 by | Leave a comment
Watch List Summary
At the end of the week for October 15, 2010, the top performing stocks from our Nasdaq 100 list for September 17, 2010 are Seagate (STX) with a gain of 38.98%, Logitech (LOGI) with a gain of 25.15% and Google (GOOG) with a gain of 22.71%.  Gains of 10% or more in a month may require mental trailing stops or selling in our estimation.  The trajectory of the top performing stocks in this category cannot continue at the same rate for too long; expect reversion to the mean.
The worst performing stock from our September 15th watch list are Urban Outfitters (URBN) down –9.12%, FLIR Systems (FLIR) down –5.32% and Steel Dynamics (STLD) down –4.40%. The average gain for the Watch List was 6.67%. In the 1-month period from September 17th to October 15th, 86% of the stocks were up while 14% of the stocks were down.
The average gain for stocks that were up was 8.45% while the average loss for stocks that fell was –3.76%. Among the top ten performing stocks the average gain was 17.94%.
From prior observations, FLIR Systems (FLIR) and Adobe Systems (ADBE) should be examined carefully as potential investment opportunities.  It is our expectation that Apollo Group will be among the companies that will be rotated out of the Nasdaq 100 index in the coming new year.
Nasdaq 100 Watch List
Below are the Nasdaq 100 companies that are within 11% 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 Trade P/E EPS Yield P/B % from Low
APOL Apollo Group, Inc. 36.58 9.37 3.9 0 4.05 2.29%
URBN Urban Outfitters, Inc. 31 20.17 1.54 0 3.83 3.06%
FLIR FLIR Systems, Inc. 25.79 17.53 1.47 0 3.05 7.46%
INTC Intel Corporation 19.32 11.56 1.67 3.30% 2.35 9.77%
ADBE Adobe Systems 28.08 31.34 0.9 0 2.77 10.33%

Watch List Performance Review
The following is a total return (appreciation plus dividends) performance review of our Nasdaq 100 Watch List from October 15, 2009:
  • Stericycle (SRCL) up 37.95%
  • Genzyme (GENZ) up 28.93%
  • Cephalon (CEPH) up 14.33%
  • Gilead (GILD) down -19.09%
As a group, the average gain for the stocks mentioned was 15.53%. This is contrasted by the Nasdaq 100 gain of 19.64% in the same period of time. It is our expectation that only 1/3 of the companies that are part of our list will outperform the market over a one year period. However, when the market of 5,000 investment opportunities is winnowed down to what we believe are the best 50, we think that selecting one out of four companies become so much easier.
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Nasdaq 100 Watch List

Posted on September 18, 2010 by | Leave a comment

Watch List Summary

At the end of the week for September 17, 2010, the top performing stocks from our Nasdaq 100 list for August 15, 2010 are Oracle (ORCL) with a gain of 21.27%, Qualcomm (QCOM) with a gain of 12.07% and Computer Associates (CA) with a gain of 11.57%.
The worst performing stocks from our August 15th watch list are Intel (INTC) down –1.78%, Applied Materials (AMAT) down –1.34% and Activision (ATVI) down –0.46%.
The average gain for the watch list was 6.33%. Of the two stocks that we pointed out as being standouts from August 15th, Garmin (GRMN) exceeded the average return by climbing 9.57% while Paychex (PAYX) underperformed the average gain by rising 3.92%.
A distinction that needs to be made between this week’s list and our August 15th list is that we’ve ranking the companies on this list by those stocks nearest their 52-week low. Our previous list was ranked by those stocks that had the highest dividend yield and within 20% of their respective 52-week low.

Performance Review

The following is a total return (appreciation plus dividends) performance review of our Nasdaq 100 Watch List from September 11, 2009:
  • Stericycle (SRCL) up 44.48%
  • Genzyme (GENZ) up 25.54%
  • Pharmaceutical Product Development (PPDI) up 20%
  • Cephalon (CEPH) up 5.92%
As a group, the average gain for the stocks mentioned was 23.99%. This is contrasted by the Nasdaq 100 gain of 16.07% in the same period of time.

*chart does not reflect dividend reinvestment for PPDI


Nasdaq 100 Watch List

Below are the Nasdaq 100 companies that are within 20% 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
PAYX Paychex, Inc. 25.95 19.67 1.32 4.80% 6.67 5.27%
INTC Intel Corporation 18.81 11.26 1.67 3.40% 2.3 6.87%
AMAT Applied Materials, Inc. 11.02 24.44 0.45 2.50% 2.03 7.33%
YHOO Yahoo! Inc. 13.89 22.77 0.61 N/A 1.59 7.34%
MXIM Maxim Integrated Products, Inc. 16.91 41.86 0.4 5.00% 2.15 7.91%
GILD Gilead Sciences, Inc. 34.56 10.47 3.3 N/A 4.58 8.93%
ATVI Activision Blizzard, Inc 10.82 41.94 0.26 1.30% 1.21 8.96%
DELL Dell Inc. 12.45 15.74 0.79 N/A 3.92 9.80%
RIMM Research In Motion Limited 46.72 10.24 4.56 N/A 3.2 9.85%
AMGN Amgen Inc. 55.22 11.73 4.71 N/A 2.28 9.87%
DISH DISH Network Corporation 18.77 11.26 1.67 N/A N/A 10.02%
CSCO Cisco Systems, Inc. 21.86 16.46 1.33 N/A 2.82 10.31%
XRAY DENTSPLY International Inc. 30.66 16.55 1.85 0.70% 2.6 10.45%
MSFT Microsoft Corporation 25.22 12 2.1 2.10% 4.76 10.95%
SPLS Staples, Inc. 19.49 17.26 1.13 1.80% 2.2 11.69%
PDCO Patterson Companies Inc. 27.15 14.67 1.85 1.50% 2.3 12.52%
SHLD Sears Holdings Corporation 66.83 27.38 2.44 N/A 0.9 12.87%
GOOG Google Inc. 490.15 21.29 23.03 N/A 3.77 13.03%
LIFE Life Technologies Corporation 46.51 29.91 1.56 N/A 1.97 13.16%
STX Seagate Technology. 11.16 3.55 3.14 N/A 1.95 13.41%
FLIR FLIR Systems, Inc. 27.24 18.52 1.47 N/A 3.25 13.50%
GRMN Garmin Ltd. 29.64 8.95 3.31 5.10% 2.21 13.52%
TEVA Teva Pharmaceutical Industries 53.48 19 2.82 1.20% 2.48 13.81%
FLEX Flextronics International Ltd. 5.55 15.72 0.35 N/A 2.26 14.20%
COST Costco Wholesale Corporation 61.29 21.93 2.8 1.30% 2.43 14.75%
HSIC Henry Schein, Inc. 56.35 15.82 3.56 N/A 2.31 14.77%
CERN Cerner Corporation 79.18 31.31 2.53 N/A 3.83 14.85%
CELG Celgene Corporation 55.25 29.99 1.84 N/A 5.11 15.06%
CA CA Inc. 20.44 13.43 1.52 0.80% 2.02 15.48%
ERTS Electronic Arts Inc. 16.26 N/A -1.06 N/A 1.96 15.63%
VRTX Vertex Pharmaceuticals Incorpor 36.25 N/A -3.53 N/A 9.01 16.00%
KLAC KLA-Tencor Corporation 31.05 25.31 1.23 3.30% 2.32 16.34%
STLD Steel Dynamics, Inc. 15.01 15.73 0.95 2.00% 1.58 16.45%
WCRX Warner Chilcott plc 22.75 11.2 2.03 N/A 2.82 16.55%
LOGI Logitech International S.A. 15.39 22.57 0.68 N/A 2.68 16.86%
CEPH Cephalon, Inc. 62.26 12.48 4.99 N/A 2.09 17.36%
URBN Urban Outfitters, Inc. 34.11 22.19 1.54 N/A 4.26 18.85%
FWLT Foster Wheeler AG. 24.19 10.8 2.24 N/A 3.46 18.99%
FISV Fiserv, Inc. 53.56 17.16 3.12 N/A 2.57 19.55%
JBHT J.B. Hunt Transport Services, I 35.26 26.73 1.32 1.40% 7.56 19.73%
CTAS Cintas Corporation 27.71 19.64 1.41 1.70% 1.67 19.96%

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Highest Yielding Nasdaq 100 Stocks

Posted on August 15, 2010 by | 2 comments
Below are the Nasdaq 100 companies that are within 20% of their respective 52-week lows and ranked by highest dividend yield. 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 considerable due diligence.
Symbol
Name
Price
P/E
EPS
Yield
P/B
% from Low
Garmin Ltd.
$27.05
8.17
$3.31
5.40%
2.09
1.92%
Paychex, Inc.
$24.97
18.93
$1.32
5.00%
6.39
1.30%
Maxim Integrated Products
$16.75
68.93
$0.24
5.00%
2.12
6.01%
KLA-Tencor Corporation
$29.10
23.72
$1.23
3.40%
2.18
9.03%
Intel Corporation
$19.15
11.46
$1.67
3.20%
2.36
4.59%
Linear Technology
$29.25
18.52
$1.58
3.10%
170.06
14.44%
Applied Materials, Inc.
$11.17
34.91
$0.32
2.50%
2.05
2.10%
Steel Dynamics, Inc.
$13.69
14.35
$0.95
2.20%
1.44
6.21%
Microsoft Corporation
$24.40
11.61
$2.10
2.10%
4.60
7.35%
QUALCOMM
$37.95
19.96
$1.90
2.00%
3.09
19.98%
Staples, Inc.
$19.11
17.68
$1.08
1.90%
2.08
1.54%
Cintas Corporation
$25.84
18.31
$1.41
1.80%
1.57
11.86%
Patterson Companies Inc.
$26.66
14.97
$1.78
1.50%
2.29
10.48%
Costco Wholesale
$55.31
19.79
$2.80
1.50%
2.21
17.43%
Activision Blizzard, Inc
$10.87
42.13
$0.26
1.40%
1.22
9.47%
Teva Pharmaceutical Industries
$49.97
17.75
$2.82
1.30%
2.35
6.34%
Ross Stores, Inc.
$49.03
12.31
$3.98
1.30%
4.93
15.91%
Sigma-Aldrich Corporation
$53.84
17.65
$3.05
1.20%
3.85
15.78%
CA Inc.
$18.32
12.04
$1.52
0.90%
1.83
2.92%
Oracle Corporation
$22.66
18.74
$1.21
0.90%
3.74
12.74%
DENTSPLY International Inc.
$30.24
16.32
$1.85
0.70%
2.62
6.86%
Watch List Summary
The best performing stock from our July 30th Nasdaq 100 Watch List was Vertex Pharmceuticals (VRTX) which increased +7.52% .  Much of Vertex's gain can be attributed to a study which indicated that the hepatitis C drug may allow for a shorter treatment time (Forbes article).  Vertex's main competetitor in this area is Merck.
The worst performing stock from July 30th was Seagate Technology (STX).  Seagate fell -10.92% on news of a downgrade from Barclays Capital (Barron's article).  The expectation is that weak demand will impair profit margins at least until the end of 2010.
This week's list makes it challenging to ignore Paychex (PAYX) and Garmin (GRMN).  The arguments that are made for PAYX increase each day the price declines.  According to Valueline, PAYX normally trades at fair value around 22 times the cash flow per share.  If this were the case, PAYX would be trading around $35.20 or 29% higher than Friday August 13th closing price based on 2010 estimated cash flow.   The primary concern with PAYX is the dividend payout ratio which is very high.  GRMN wouldn't be so difficult of an investment  if they paid a quarterly dividend.  However, Valueline has GRMN priced at fair value around $44.10 or 63% above the current price.

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Nasdaq 100 Watch List

Posted on July 30, 2010 by | Leave a comment
Below are the Nasdaq 100 companies that are within 10% of their respective 52-week lows. Keep in mind that the March 2009 low or the November 2008 low should be your downside target for the worst case scenario.
Symbol Name Price P/E EPS Yield P/B % from Low
SYMC Symantec Corp. $12.97 14.87 0.87 0.00% 2.29 1.17%
AMAT Applied Materials $11.80 36.88 0.32 2.30% 2.19 2.79%
NVDA NVIDIA Corp. $9.19 19.07 0.48 0.00% 1.83 3.03%
TEVA Teva Pharma. $48.85 17.35 2.82 1.30% 2.19 3.96%
PAYX Paychex, Inc. $25.99 19.7 1.32 4.60% 6.73 4.42%
LIFE Life Technologies $42.99 36.04 1.19 0.00% 1.84 4.60%
GILD Gilead Sciences $33.32 10.1 3.3 0.00% 4.4 5.01%
XRAY DENTSPLY Intl $30.02 16.41 1.83 0.70% 2.35 6.08%
HSIC Henry Schein, Inc. $52.49 15.11 3.47 0.00% 2.15 6.90%
HOLX Hologic, Inc. $14.14 25.71 0.55 0.00% 1.3 6.96%
CEPH Cephalon, Inc. $56.75 11.32 5.01 0.00% 1.79 6.97%
GRMN Garmin Ltd. $28.51 8.28 3.44 5.00% 2.23 7.42%
VRTX Vertex Pharma $33.66 N/A -3.5 0.00% 6.65 7.71%
SPLS Staples, Inc. $20.33 18.81 1.08 1.80% 2.14 8.02%
AMGN Amgen Inc. $54.53 11.57 4.71 0.00% 2.31 8.37%
STX Seagate Tech. $12.55 4.01 3.13 0.00% 2.22 8.56%
EBAY eBay Inc. $20.91 10.99 1.9 0.00% 1.92 9.71%
CA CA Inc. $19.56 12.85 1.52 0.80% 1.94 9.89%

Watch List Summary

Of particular interest to us is Garmin Limited (GRMN) which happens to have the highest dividend yield.  We're suckers for high dividend yields which means we'll do just as much research as possible to determine if the yield is justified.  One approach that we used compares the dividend to the price as a ratio.  In this analysis, we were able to determine that the current price of $28.51, based on the current dividend, is the equivalent to the May 22, 2009 price of $19.74.  In addition, the earnings would have to decline 56% before the current dividend is no longer serviceable before borrowing, issuance of shares or the dividend is ultimately cut.  This appears to be a wide margin of safety for those concerned about earnings slippage going forward. 
The caveat to all of this analysis on Garmin (GRMN) is that we're not sure if the company is truly committed to paying a dividend.  Since the history of dividend payments is so short (since 2003) it is hard to say whether or not the dividend will stick.  In addition, the company has an erratic dividend payment schedule.  I'd like to say that the payment is annually however we cannot be certain that the next dividend payment will occur at the same time next year as it did this year.  Finally, annual payments of the dividend requires nerves of steel in order to get through to the next dividend payment, if it arrives.
For those drawn to the company for their dividend and the high visibility of their products, Garmin (GRMN) appears to be an interesting company to do follow-up research for the speculative portion of your portfolio.  In addition, Garmin (GRMN) might be underpriced at the current level and could be a possible takeover candidate due to their strong foothold in the niche business of GPS navigation.

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Nasdaq 100 Watch List

Posted on July 2, 2010 by | Leave a comment
Below are the top 20 Nasdaq 100 companies that are within 7% of the 52-week low. This list is strictly for the purpose of researching whether or not the companies have viable business models. These companies are deemed highly speculative unless otherwise noted.

Symbol Name Trade P/E EPS Yield P/B % from Low
APOL Apollo Group, Inc. 41.86 10.47 4 0.00% 4.9 0.99%
RIMM Research In Motion Limited 48.14 N/A 0 0.00% N/A 1.35%
DELL Dell Inc. 12.03 15.95 0.75 0.00% 4 1.60%
YHOO Yahoo! Inc. 14.07 25.26 0.56 0.00% 1.53 2.33%
QCOM QUALCOMM Incorporated 32.37 17.26 1.88 2.20% 2.53 2.34%
SPLS Staples, Inc. 19.19 17.75 1.08 1.80% 2.07 2.51%
AMGN Amgen Inc. 51.7 10.97 4.71 0.00% 2.25 2.74%
ADBE Adobe Systems Incorporated 26.73 37.54 0.71 0.00% 2.71 2.77%
SYMC Symantec Corporation 13.98 16.03 0.87 0.00% 2.43 2.95%
VRTX Vertex Pharmaceuticals 32.22 0 -3.5 0.00% 6.59 3.10%
ERTS Electronic Arts Inc. 14.6 0 -2.08 0.00% 1.73 3.84%
STLD Steel Dynamics, Inc. 13.03 18.97 0.69 2.20% 1.39 4.83%
FISV Fiserv, Inc. 45.47 14.25 3.19 0.00% 2.24 5.40%
NVDA NVIDIA Corporation 10.25 21.27 0.48 0.00% 2.08 5.56%
XRAY DENTSPLY Intl 29.39 16.07 1.83 0.60% 2.38 5.76%
MSFT Microsoft Corporation 23.27 12.06 1.93 2.10% 4.44 5.77%
GILD Gilead Sciences, Inc. 34.87 11.18 3.12 0.00% 4.19 6.18%
LOGI Logitech Intl 13.91 38.43 0.36 0.00% 2.34 6.26%
CEPH Cephalon, Inc. 55.95 11.16 5.01 0.00% 1.76 6.47%
PAYX Paychex, Inc. 25.47 19.31 1.32 4.70% 6.7 6.84%

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Nasdaq 100 Watch List

Posted on June 12, 2010 by | Leave a comment

Below are the Nasdaq 100 companies that are between 10% and  20% of the 52-week low.  For companies that are within 10% of the 52-week low, please refer to last week's Nasdaq 100 watch list.  This list is strictly for the purpose of researching whether or not the companies have viable business models or are about to go out of business. These companies are deemed highly speculative unless otherwise noted.

Symbol Name Price P/E EPS Yield P/B % from Low
FISV Fiserv, Inc. $47.51 14.9 3.19 0.00% 2.31 10.13%
BIIB Biogen Idec Inc $46.22 14 3.3 0.00% 2.18 10.71%
DELL Dell Inc. $13.15 16.3 0.81 0.00% 4.29 11.06%
XRAY DENTSPLY Intl $31.20 17.1 1.83 0.60% 2.51 12.27%
LOGI Logitech Intl $14.57 40.3 0.36 0.00% 2.58 13.56%
VRTX Vertex Pharmaceuticals $35.01 0 -3.5 0.00% 6.96 14.79%
TEVA Teva Pharmaceutical $52.97 21 2.52 1.20% 2.39 14.80%
STLD Steel Dynamics, Inc. $14.28 20.8 0.69 2.10% 1.50 14.88%
SIAL Sigma-Aldrich $52.66 18 2.93 1.20% 3.74 14.98%
SPLS Staples, Inc. $21.73 20.1 1.08 1.70% 2.36 16.08%
HOLX Hologic, Inc. $14.57 26.5 0.55 0.00% 1.32 16.37%
ORCL Oracle Corporation $22.69 20.3 1.12 0.90% 3.91 16.54%
MSFT Microsoft Corporation $25.66 13.3 1.93 2.00% 4.79 16.64%
MXIM Maxim Integrated Products $17.52 72.1 0.24 4.60% 2.17 17.11%
JNPR Juniper Networks $24.99 47.2 0.53 0.00% 2.11 17.71%
CTAS Cintas Corporation $25.30 23.6 1.07 1.90% 1.57 18.78%
PAYX Paychex, Inc. $28.36 21.6 1.32 4.40% 7.40 18.96%
CHRW C.H. Robinson Worldwide $58.21 27.2 2.14 1.70% 8.98 19.43%
NVDA NVIDIA Corporation $11.61 24.1 0.48 0.00% 2.27 19.57%
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Nasdaq 100 Watch List

Posted on June 6, 2010 by | Leave a comment
Below are the top ten Nasdaq 100 companies that are within 20% of the 52-week low. This list is strictly for the purpose of researching whether or not the companies have viable business models or are about to go out of business. These companies are deemed highly speculative unless otherwise noted.

Symbol Name Price P/E EPS Yield P/B % from Low
GILD Gilead Sciences, Inc. $34.71 11.13 3.12 0.00% 4.41 0.42%
SYMC Symantec Corporation $13.92 15.96 0.87 0.00% 2.56 0.58%
ERTS Electronic Arts Inc. $15.81 0 -2.08 0.00% 2 0.70%
APOL Apollo Group, Inc. $51.48 12.88 4 0.00% 5.98 0.81%
QCOM QUALCOMM $35.30 18.83 1.88 2.20% 2.89 2.27%
GENZ Genzyme $47.75 115.9 0.41 0.00% 1.76 5.20%
FISV Fiserv, Inc. $46.22 14.48 3.19 0.00% 2.33 7.13%
YHOO Yahoo! Inc. $15.00 26.93 0.56 0.00% 1.68 7.37%
ATVI Activision $10.70 45.53 0.24 1.40% 1.26 7.75%
RIMM Research In Motion $59.68 0 0 0.00% 0 9.91%
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Nasdaq 100 Watch List

Posted on May 29, 2010 by | Leave a comment

Below are the Nasdaq 100 companies that are within 20% of the 52-week low. This list is strictly for the purpose of researching whether or not the companies have viable business models or are about to go out of business. These companies are deemed highly speculative unless otherwise noted.

Symbol Name Price P/E EPS Yield P/B % from Low
SYMC Symantec Corporation $14.17 16.25 $0.87 0.00% 2.58 1.00%
APOL Apollo Group, Inc. $53.16 13.3 $4.00 0.00% 6.02 1.84%
QCOM QUALCOMM Incorporated $35.56 18.97 $1.88 2.10% 2.81 3.01%
GILD Gilead Sciences, Inc. $35.92 11.52 $3.12 0.00% 4.45 3.28%
ERTS Electronic Arts Inc. $16.51 0 -$2.08 0.00% 2 5.16%
AMGN Amgen Inc. $51.78 10.99 $4.71 0.00% 2.22 5.46%
GENZ Genzyme Corporation $48.65 118.1 $0.41 0.00% 1.78 7.18%
ATVI Activision Blizzard, Inc $10.75 45.74 $0.24 1.40% 1.23 8.26%
RYAAY Ryanair Holdings plc $23.54 0 $0.00 0.00% 0 9.23%
YHOO Yahoo! Inc. $15.34 27.54 $0.56 0.00% 1.71 9.81%
LOGI Logitech International S.A. $14.19 39.2 $0.36 0.00% 2.53 10.60%
RIMM Research In Motion Limited $60.69 0 $0.00 0.00% 0 11.77%
CEPH Cephalon, Inc. $58.86 11.74 $5.01 0.00% 1.86 12.01%
BIIB Biogen Idec Inc $47.43 14.36 $3.30 0.00% 2.18 13.60%
FSLR First Solar, Inc. $112.36 14.9 $7.54 0.00% 3.47 13.83%
SPLS Staples, Inc. $21.52 19.91 $1.08 1.70% 2.35 14.96%
FISV Fiserv, Inc. $47.55 14.9 $3.19 0.00% 2.35 15.67%
SIAL Sigma-Aldrich Corporation $53.32 18.19 $2.93 1.20% 3.84 16.42%
XRAY DENTSPLY International $32.43 17.73 $1.83 0.60% 2.64 16.70%
DELL Dell Inc. $13.33 16.56 $0.81 0.00% 4.4 17.65%
ORCL Oracle Corporation $22.57 20.17 $1.12 0.90% 3.98 17.80%
STLD Steel Dynamics, Inc. $14.67 21.35 $0.69 2.00% 1.58 18.02%
MXIM Maxim Integrated Products $17.76 73.09 $0.24 4.50% 2.26 18.72%
CHRW C.H. Robinson Worldwide $58.11 27.18 $2.14 1.70% 9.17 19.22%
TEVA Teva Pharmaceutical $54.82 21.77 $2.52 1.20% 2.53 19.41%
PAYX Paychex, Inc. $28.54 21.7 $1.32 4.30% 7.45 19.71%
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Nasdaq 100 Watch List

Posted on May 22, 2010 by | Leave a comment
Although we track companies that are near their 52-week lows, the true benchmark for all stocks is the lowest point reached from the period of 2006 to the present.  This means that in order to determine if the company of interest is of "value," you must contrast the current data with the lowest quarterly/annual  earnings, P/E, P/B, P/S, share price during the last 3 to 4 years. 

Do not accept the fact that these companies are undervalued unless compared to the worst period after the financial crisis began.  If, as an investor, you cannot accept the potential of the stock of interest falling to, or below, the November 2008 or March 2009 lows, then your money should not be in the stock in question.  This concept is emphasized in the quote by Charles H. Dow in our posting titled "A Comprehensive View On Valuing Earnings."  

Below are the Nasdaq 100 companies that are within 21% of their respective 52-week low. 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 thorough due diligence.   

Symbol Name Price P/E EPS Yield P/B % from Low
GILD Gilead Sciences, Inc. 36.57 11.73 3.12 0.00% 4.54 1.33%
RYAAY Ryanair Holdings plc 23.14 0 0 0.00% 0 2.39%
QCOM QUALCOMM 35.89 19.14 1.88 2.10% 2.82 3.04%
ATVI Activision 10.24 43.59 0.24 1.40% 1.19 3.15%
GENZ Genzyme 49.41 119.93 0.41 0.00% 1.75 4.93%
SYMC Symantec 14.71 16.87 0.87 0.00% 2.6 5.30%
APOL Apollo Group, Inc. 55.5 13.88 4 0.00% 6.29 6.32%
ERTS Electronic Arts Inc. 16.7 0 -2.08 0.00% 1.96 6.37%
AMGN Amgen Inc. 52.44 11.13 4.71 0.00% 2.29 8.80%
CEPH Cephalon, Inc. 57.79 11.52 5.01 0.00% 1.87 9.97%
YHOO Yahoo! Inc. 15.48 27.78 0.56 0.00% 1.64 10.77%
LOGI Logitech 14.22 39.28 0.36 0.00% 2.41 10.83%
STLD Steel Dynamics, Inc. 14.01 20.39 0.69 2.20% 1.44 12.71%
RIMM RIMM 61.61 0 0 0.00% 0 13.46%
SPLS Staples, Inc. 21.52 21.04 1.02 1.70% 2.3 14.96%
FSLR First Solar, Inc. 113.95 15.11 7.54 0.00% 3.28 15.44%
SIAL Sigma-Aldrich 52.87 18.03 2.93 1.20% 3.68 16.89%
BIIB Biogen Idec Inc 48.98 14.83 3.3 0.00% 2.23 17.32%
FISV Fiserv, Inc. 47.43 14.86 3.19 0.00% 2.29 18.58%
XRAY DENTSPLY 33.06 18.08 1.83 0.60% 2.65 18.96%
MXIM Maxim Integrated 17.69 72.8 0.24 4.50% 2.21 20.67%

Watch List Summary

The stock that fell the most from last week's watch list was Symantec (SYMC) which lost -8.75%.  The stock that gained the most was Apollo Group (APOL) at 5.15%.  In all, the Nasdaq 100 Watch List of last week lost -3.21% as compared to the Nasdaq 100 index which lost -4.42%. 
One of my favorite stocks, Dentsply Intl (XRAY), is appearing on our list for the first time in very long time.  According to Yahoo! Finance, "DENTSPLY International Inc. designs, develops, manufactures, and markets dental consumable products, dental laboratory products, and dental specialty products worldwide."  As a Dividend Achiever and a member of the Nasdaq 100, XRAY had a 15-year history of consecutive dividend increases until March 2010.  The compounded annual growth rate (CAGR) of the dividend is in the low twenties.  The lack of an increase in the last quarter is "acceptable" and probably prudent considering the state of our economy going forward.  XRAY is definitely a company to research and accumulate as the price gets closer to the March 2009 low.
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Nasdaq 100 Watch List

Posted on May 16, 2010 by | Leave a comment
Below are the Nasdaq 100 companies that are within 21% of their respective 52-week low. 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 considerable due diligence.

Name (SYMBOL) Price P/E EPS Yield P/B Pct from Yr Low
Activision Blizzard, Inc (ATVI) $10.69 45.49 0.24 1.40% 1.25 7.65%
Amgen Inc. (AMGN) $54.69 11.61 4.71 0.00% 2.42 15.14%
Apollo Group, Inc. (APOL) $52.78 13.2 4 0.00% 6.18 1.11%
Biogen Idec Inc (BIIB) $50.13 15.18 3.3 0.00% 2.32 20.07%
Cephalon, Inc. (CEPH) $60.69 12.1 5.01 0.00% 1.98 15.49%
Electronic Arts Inc. (ERTS) $17.42 0 -2.31 0.00% 2.28 10.96%
Genzyme Corporation (GENZ) $50.43 122.4 0.41 0.00% 1.83 7.09%
Gilead Sciences, Inc. (GILD) $37.78 12.12 3.12 0.00% 4.74 0.61%
Logitech (LOGI) $14.74 40.72 0.36 0.00% 2.69 14.89%
QUALCOMM (QCOM) $37.30 19.89 1.88 2.00% 3 5.88%
Ryanair Holdings plc (RYAAY) $24.72 0 0 0.00% 0 4.39%
Sigma-Aldrich (SIAL) $54.23 18.5 2.93 1.20% 4.01 21.00%
Staples, Inc. (SPLS) $22.12 21.62 1.02 1.60% 2.39 18.16%
Stericycle, Inc. (SRCL) $56.70 26.83 2.11 0.00% 5.49 21.00%
Symantec Corporation (SYMC) $16.12 18.49 0.87 0.00% 2.89 15.39%
Yahoo! Inc. (YHOO) $16.39 29.37 0.56 0.00% 1.84 17.32%

Watch List Summary

The stock that fell the most from last week's watch list was Apollo Group (APOL) which fell -3% for the week. Yahoo! (YHOO) gained the most for the week with 7.19%.

In all, the Nasdaq 100 Watch List of last week gained 1.15% as compared to the Nasdaq 100 index which gained 3.12%.  As quickly as Cintas (CTAS) got on the Watch List is as quickly as it came off the watch list.  Although CTAS is not on the watch list, I would still continue to follow the company for additional analysis and possible purchase at the right price. 
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