(B)(N)The NASDAQ Expendables

Marvin The Martian
Courtesy: Warner Brothers Cartoons 1948

Drama. These four stocks have been getting a bad press and maybe it’s because they’re too good to be true or maybe it’s because they’re yesterday’s heroes and they don’t have that alluring bounce and jiggle that opened-up their wallets then but not now (The Street, March 19, 2014, Cramer: Seductive Words of the Fisherman Skeptic).

And of course, we’re waiting for the end too but not the surprise and we’re not surprised now if some of the players are quietly taking some of their money off the table. But where will it go? Please the fundamentals below.

Exhibit 1: The NASDAQ Expendables – Fundamentals – March 2014

The NASDAQ Expendables – Fundamentals – March 2014

(B)(N) The NASDAQ Expendables – Risk Price Chart – March 2014

These four stocks were up +67% and $45 billion last year but have given back $2.7 billion since December.

Starbucks gave its all and paid out 8× its earnings in dividends but that didn’t save the stock price whereas Seattle Genetics gave nothing, lost money and is still up +24% this year. Let’s go ask Marvin.

Both of them are still in the Perpetual Bond™ but Nordstrom and Zillow didn’t make it; for more details, please see Exhibit 2 below.

But that isn’t all; investor angst didn’t end there and there are eleven companies in the big cap NASDAQ 100 that were big last year but are all out now; please see Exhibit 3 and 4 below.

Exhibit 2: The NASDAQ Expendables – Prices & Portfolio – March 2014

(B)(N) The NASDAQ Expendables – Prices & Portfolio – March 2014

Exhibit 3: The NASDAQ 100 Expendables – Fundamentals – March 2014

The NASDAQ 100 Expendables – Fundamentals – March 2014

(B)(N) The NASDAQ 100 Expendables – Risk Price Chart – March 2014

These eleven companies gained $60 billion and +33% last year but gave almost all of it back in the last three months.

If we were a pension fund we’d be wondering who’s at the helm and we don’t buy the “risk/reward equation” or problems in China or the Ukraine or that the government isn’t paying us enough.

Have you got any new ideas yet?

If they can’t keep our money 100% capital safe, then we know that there are vacancies on Mars – allegedly a very peaceful planet and not populated with investors – and a good alternative fund for them to manage while they figure out how to do it before we get there.

Exhibit 4: (B)(N) The NASDAQ 100 Expendables – Prices & Portfolio – March 2014

(B)(N) The NASDAQ 100 Expendables – Prices & Portfolio – March 2014

For more information on “risk management” and additional references to the theory and how to read the charts and tables, please see our Post, The RiskWerk Company Glossary.

And for more on what risk averse investing has done for us this year, please see our recent Posts on The S&P TSX “Hangdog” Market or The Wall Street Put or specialty markets such as The Dow Transports & Utilities or (B)(N) The Woods Are Burning, or for the real class action, La Dolce Vita – Let’s Do Prada! and It’s For You, Dear on the smartphone business.

And for more stocks at high prices, The World’s Most Talked About Stocks or Earnings Don’t Matter – NASDAQ 100. And for more on what’s Working in America, Big Oil, Shopping in America or Banking in America, to name just a few.

Postscript

We are The RiskWerk Company and care not a jot for mutual funds, hedge funds, “alternative investments”, the “risk/reward equation” and every other unprovable artifact of investment lore. We have just one product

The Perpetual Bond™
Alpha-smart with 100% Capital Safety and 100% Liquidity
Guaranteed
With No Fees and No Loads on Capital

For more information on RiskWerk, please follow the Tags or Categories attached to this Letter or simply enter Search for additional references to any term that we have used. Related data may be obtained from us for free in a machine readable format by request to RiskWerk@gmail.com.

Disclaimer

Investing in the bond and stock markets has become a highly regulated and litigious industry but despite that, there remains only one effective rule and that is caveat emptor or “buyer beware”. Nothing that we say should be construed by any person as advice or a recommendation to buy, sell, hold or avoid the common stock or bonds of any public company at any time for any purpose. That is the law and we fully support and respect that law and regulation in every jurisdiction without exception and without qualification to the best of our knowledge and ability. We can only tell you what we do and why we do it or have done it and we know nothing at all about the future or the future of stock prices of any company nor why they are what they are, now. The author retains all copyrights to his works in this blog and on this website. The Perpetual Bond®™ is a registered trademark and patented technology of The RiskWerk Company and RiskWerk Limited (“Company”) . The Canada Pension Bond®™ and The Medina Bond®™ are registered trademarks or trademarks of the Company as are the words and phrases “Alpha-smart”, “100% Capital Safety”, “100% Liquidity”, ”price of risk”, “risk price”, and the symbols “(B)”, “(N)” and N*.