I’m sure you’ve already heard about the bloodbath yesterday on Wall Street. The Dow was down 4.31% and the S&P 500 was down 4.78%. The market is obviously in panic mode. I think at this point, it would be interesting to know how much money the stock market has lost.

Nearly a month ago, I have calculated the total value of the stock market, and back then it amounted to $23.34 trillion. Now it’s easy to assume that the total loss in the stock market (by looking at the Dow and the S&P movement) was around 4.5% on August 4th. So, the total loss, in dollars, would be: $23.34 trillion x 4.5% = $1.04 trillion. Yes, the stock market lost more than $1 trillion in only one day. For those of you who hate stock traders and are gloating, don’t. Stock trading is a job like any other job, except that the person is working with money. It’s not nice to be happy when others are losing. Some investors lost quite a bit of money yesterday, and no, “it’s not easy comes, easy goes”. Try to live with the stress for a few days and you’ll see what I mean!

August 4, 2011 | In: Lists

Stocks that Make Up the S&P 500

After my previous post on the stocks making up the Dow, I have decided to create another post which lists the stocks that make up the S&P 500. Obviously, as the name implies, there are 500 stocks that make up the S&P 500 (one of them is now inactive).

The list below is ordered based on the market capitalization of the listed companies:

Company Name Symbol Market Cap Contribution to the S&P
Exxon Mobil Corporation XOM $385,382,242,613 3.21%
Apple Inc. AAPL $363,948,075,907 3.03%
Microsoft Corporation MSFT $225,542,915,491 1.88%
International Business Machines Corp. IBM $213,572,775,375 1.78%
Chevron Corporation CVX $205,522,725,486 1.71%
Google Inc. GOOG $194,110,430,965 1.62%
General Electric Company GE $184,670,490,018 1.54%
Berkshire Hathaway Inc. CL ‘B’ BRK.B $182,909,008,683 1.52%
Wal-Mart Stores, Inc. WMT $178,072,896,509 1.48%
AT&T Inc. T $174,787,500,000 1.45%
Johnson & Johnson JNJ $173,815,904,288 1.45%
The Procter & Gamble Company PG $169,839,540,051 1.41%
The Coca-Cola Company KO $156,841,203,499 1.31%
JPMorgan Chase & Co. JPM $156,016,985,966 1.30%
Oracle Corporation ORCL $152,927,900,555 1.27%
Wells Fargo & Company WFC $144,094,085,949 1.20%
Pfizer Inc. PFE $142,378,373,893 1.18%
Philip Morris International Inc. PM $123,919,540,708 1.03%
Schlumberger Limited. SLB $117,651,340,361 0.98%
Intel Corporation INTC $115,636,617,168 0.96%
Citigroup Inc. C $108,720,949,102 0.90%
ConocoPhillips COP $102,720,327,166 0.85%
PepsiCo, Inc. PEP $101,888,127,314 0.85%
Verizon Communications Inc. VZ $101,815,997,349 0.85%
Merck & Co., Inc. MRK $100,931,328,454 0.84%
Bank of America Corporation BAC $96,670,627,453 0.80%
Amazon.com, Inc. AMZN $95,308,263,885 0.79%
QUALCOMM, Inc. QCOM $90,252,392,680 0.75%
McDonald’s Corporation MCD $88,767,082,990 0.74%
Cisco Systems, Inc. CSCO $85,197,863,090 0.71%
Abbott Laboratories ABT $77,827,900,197 0.65%
Occidental Petroleum Corporation OXY $76,269,377,232 0.63%
United Technologies Corporation UTX $72,070,020,339 0.60%
Visa Inc. V $71,465,780,011 0.59%
Hewlett-Packard Company HPQ $71,102,056,167 0.59%
The Walt Disney Company DIS $70,748,454,129 0.59%
Goldman Sachs Group, Inc. GS $68,382,477,919 0.57%
United Parcel Service, Inc. UPS $66,332,766,643 0.55%
Comcast Corporation CMCSA $62,785,384,472 0.52%
Caterpillar Inc. CAT $62,071,004,955 0.52%
3M Company MMM $61,147,789,514 0.51%
Kraft Foods Inc. KFT $60,295,152,525 0.50%
American Express Company AXP $58,289,980,728 0.49%
Altria Group, Inc. MO $54,597,737,412 0.45%
The Home Depot, Inc. HD $52,464,485,464 0.44%
EMC Corporation EMC $51,706,249,731 0.43%
UnitedHealth Group Inc. UNH $51,116,583,138 0.43%
American International Group, Inc. AIG $50,650,315,099 0.42%
The Boeing Company BA $49,905,099,098 0.42%
Amgen, Inc. AMGN $49,267,679,718 0.41%
CVS Caremark Corporation CVS $49,098,631,131 0.41%
U.S. Bancorp USB $48,567,749,119 0.40%
Bristol Myers Squibb Co. BMY $48,253,312,052 0.40%
Freeport-McMoRan Copper & Gold Inc. FCX $47,981,522,454 0.40%
Union Pacific Corporation UNP $47,969,356,447 0.40%
Halliburton Company HAL $47,959,052,440 0.40%
E.I. du Pont de Nemours & Company DD $47,019,085,500 0.39%
Apache Corporation APA $45,419,248,481 0.38%
Ford Motor Company F $44,248,854,127 0.37%
Eli Lilly & Co. LLY $43,193,366,427 0.36%
MasterCard Incorporated MA $43,067,056,313 0.36%
MetLife, Inc. MET $41,700,247,900 0.35%
eBay Inc. EBAY $41,562,483,232 0.35%
NIKE, Inc. NKE $41,348,222,523 0.34%
Colgate-Palmolive Company CL $41,021,338,608 0.34%
News Corporation NWSA $41,001,686,655 0.34%
Morgan Stanley MS $40,422,154,540 0.34%
Honeywell International Inc. HON $40,365,318,870 0.34%
Anadarko Petroleum Corporation APC $39,969,104,657 0.33%
The Dow Chemical Company DOW $39,620,517,957 0.33%
DIRECTV DTV $37,982,345,120 0.32%
Monsanto Company MON $37,918,065,985 0.32%
Emerson Electric Co. EMR $36,425,998,409 0.30%
Medtronic, Inc. MDT $36,401,651,079 0.30%
Time Warner Inc. TWX $35,947,449,800 0.30%
Walgreen Company WAG $34,532,674,234 0.29%
Target Corporation TGT $34,284,978,625 0.29%
Texas Instruments Incorporated TXN $34,251,757,708 0.29%
Simon Property Group, Inc SPG $33,850,134,927 0.28%
Costco Wholesale Corporation COST $33,746,623,758 0.28%
The Southern Company SO $33,460,973,421 0.28%
BlackRock, Inc. BLK $33,353,384,867 0.28%
National-Oilwell Varco, Inc. NOV $32,834,075,485 0.27%
Deere & Company DE $32,346,988,764 0.27%
Danaher Corporation DHR $32,083,957,378 0.27%
Devon Energy Corporation DVN $32,059,170,387 0.27%
Baxter International Inc. BAX $31,747,218,242 0.26%
Baker Hughes Incorporated BHI $31,280,661,761 0.26%
Gilead Sciences, Inc. GILD $30,846,570,295 0.26%
Praxair, Inc. PX $30,687,209,819 0.26%
The Bank of New York Mellon Corporation BK $30,385,842,688 0.25%
Dell Inc. DELL $29,967,499,328 0.25%
Starbucks Corporation SBUX $29,444,287,085 0.25%
Exelon Corporation EXC $28,853,621,694 0.24%
Newmont Mining Corporation NEM $28,227,441,691 0.23%
PNC Financial Services PNC $28,177,819,839 0.23%
Prudential Financial, Inc. PRU $27,757,440,521 0.23%
Franklin Resources, Inc. BEN $27,710,138,230 0.23%
Dominion Resources, Inc. D $27,697,686,545 0.23%
Viacom, Inc. VIA.B $27,477,092,704 0.23%
FedEx Corporation FDX $27,181,900,905 0.23%
Celgene Corporation CELG $26,972,069,981 0.22%
Lowe’s Companies, Inc. LOW $26,588,266,150 0.22%
EOG Resources, Inc. EOG $26,301,267,786 0.22%
priceline.com Incorporated PCLN $25,914,113,687 0.22%
CSX Corporation CSX $25,771,974,588 0.21%
Carnival Corporation CCL $25,537,098,403 0.21%
Kimberly Clark Corp KMB $25,316,511,197 0.21%
Express Scripts, Inc. ESRX $25,049,799,220 0.21%
Norfolk Southern Corp. NSC $24,991,009,671 0.21%
Automatic Data Processing ADP $24,820,336,600 0.21%
Johnson Controls, Inc. JCI $24,711,200,104 0.21%
Lockheed Martin Corporation LMT $24,688,392,561 0.21%
Duke Energy Corporation DUK $24,563,071,840 0.20%
Allergan, Inc. AGN $24,536,373,825 0.20%
General Dynamics Corporation GD $24,514,829,234 0.20%
Illinois Tool Works Inc. ITW $24,485,751,888 0.20%
Corning Incorporated GLW $24,163,866,860 0.20%
Covidien plc COV $24,084,864,429 0.20%
Biogen Idec Inc. BIIB $23,958,670,963 0.20%
Yum! Brands, Inc. YUM $23,708,253,176 0.20%
General Mills, Inc. GIS $23,672,909,898 0.20%
WellPoint, Inc. WLP $23,345,541,006 0.19%
Medco Health Solutions Inc. MHS $23,074,660,760 0.19%
NextEra Energy, Inc. NEE $22,798,510,009 0.19%
The Travelers Companies, Inc. TRV $22,704,014,126 0.19%
ACE Limited ACE $22,602,955,146 0.19%
Time Warner Cable Inc. TWC $22,590,474,800 0.19%
Precision Castparts Corp. PCP $22,526,921,431 0.19%
Chesapeake Energy Corporation CHK $22,283,729,702 0.19%
Cognizant Technology Solutions Corp. CTSH $22,122,006,242 0.18%
Hess Corp. HES $22,105,779,913 0.18%
Thermo Fisher Scientific Inc. TMO $21,699,472,483 0.18%
American Tower Corporation AMT $21,287,163,361 0.18%
AFLAC Incorporated AFL $20,952,625,905 0.17%
Capital One Financial Corp. COF $20,948,567,583 0.17%
The TJX Companies, Inc. TJX $20,714,652,030 0.17%
CenturyLink, Inc. CTL $20,694,761,266 0.17%
State Street Corporation STT $20,384,791,289 0.17%
Tyco International Ltd. TYC $20,320,626,455 0.17%
Reynolds American, Inc. RAI $20,301,983,141 0.17%
Stryker Corporation SYK $20,220,246,548 0.17%
Public Storage PSA $19,977,794,494 0.17%
The Estee Lauder Companies Inc. EL $19,801,023,679 0.16%
Cummins Inc. CMI $19,770,031,713 0.16%
Marathon Oil Corporation MRO $19,675,005,293 0.16%
Kellogg Company K $19,674,699,448 0.16%
Broadcom Corporation BRCM $19,313,499,184 0.16%
salesforce.com, inc. CRM $19,278,921,428 0.16%
McKesson Corporation MCK $19,251,144,521 0.16%
Wynn Resorts, Limited WYNN $18,931,989,928 0.16%
Archer Daniels Midland Company ADM $18,906,768,798 0.16%
CME Group Inc. CME $18,766,087,561 0.16%
Air Products & Chemicals, Inc. APD $18,410,424,845 0.25%
FirstEnergy Corp. FE $18,179,869,027 0.25%
The Charles Schwab Corporation SCHW $18,113,011,122 0.25%
Coach, Inc. COH $18,071,322,098 0.25%
American Electric Power Company, Inc. AEP $17,902,004,017 0.25%
CBS Corporation CBS $17,829,793,148 0.25%
Becton, Dickinson and Co. BDX $17,728,984,731 0.25%
Equity Residential EQR $17,696,809,341 0.25%
The Chubb Corporation CB $17,682,914,564 0.25%
Williams Companies, Inc. WMB $17,679,673,075 0.25%
SYSCO Corporation SYY $17,440,184,891 0.25%
BB&T Corporation BBT $17,143,592,666 0.14%
Spectra Energy Corp. SE $17,080,025,431 0.14%
NetApp Inc. NTAP $17,037,776,838 0.14%
Yahoo! Inc. YHOO $16,964,298,002 0.14%
Noble Energy, Inc. NBL $16,957,672,162 0.14%
H.J. Heinz Company HNZ $16,635,373,274 0.14%
Marsh & McLennan Companies, Inc. MMC $16,152,787,661 0.13%
Applied Materials, Inc. AMAT $16,095,834,516 0.13%
PG&E Corporation PCG $16,085,126,792 0.13%
Alpha Natural Resources, Inc. ANR $16,032,000,732 0.13%
Public Service Enterprise Group Inc. PEG $16,022,002,933 0.13%
Vornado Realty Trust VNO $15,982,257,921 0.13%
PPL Corporation PPL $15,923,606,221 0.13%
Northrop Grumman Corporation NOC $15,879,817,393 0.13%
Aon Corporation AON $15,684,163,537 0.13%
Loews Corporation L $15,519,817,741 0.13%
Eaton Corporation ETN $15,513,227,844 0.13%
Consolidated Edison, Inc. ED $15,401,280,264 0.13%
Raytheon Company RTN $15,307,907,094 0.13%
Alcoa Inc. AA $15,175,250,708 0.13%
Boston Properties, Inc. BXP $15,013,903,849 0.12%
El Paso Corporation EP $14,987,169,461 0.12%
Intuitive Surgical, Inc. ISRG $14,827,356,912 0.12%
Lorillard Inc. LO $14,808,310,501 0.12%
Cardinal Health, Inc. CAH $14,791,243,405 0.12%
Southwestern Energy Company SWN $14,761,797,520 0.12%
Motorola Solutions Inc MSI $14,761,732,860 0.12%
St. Jude Medical, Inc. STJ $14,702,875,464 0.12%
The Kroger Co. KR $14,686,068,226 0.12%
PACCAR Inc PCAR $14,652,895,056 0.12%
Peabody Energy Corporation BTU $14,625,194,821 0.12%
Aetna Inc. AET $14,617,680,285 0.12%
Waste Management, Inc. WM $14,567,598,239 0.12%
Kohl’s Corporation KSS $14,557,615,674 0.12%
Mead Johnson Nutrition CO MJN $14,369,858,753 0.12%
The Allstate Corporation ALL $14,242,892,383 0.12%
T. Rowe Price Group, Inc. TROW $14,187,448,712 0.12%
HCP, Inc. HCP $13,991,688,187 0.12%
Intuit Inc. INTU $13,956,659,098 0.12%
Symantec Corporation SYMC $13,803,736,115 0.11%
Progress Energy, Inc. PGN $13,706,015,891 0.11%
Prologis Inc PLD $13,682,697,728 0.11%
Netflix, Inc. NFLX $13,659,423,960 0.11%
Agilent Technologies Inc. A $13,643,369,871 0.11%
Discover Financial Services DFS $13,576,257,722 0.11%
Bed Bath & Beyond Inc. BBBY $13,522,491,710 0.11%
Adobe Systems Incorporated ADBE $13,517,129,065 0.11%
The McGraw-Hill Companies, Inc. MHP $13,453,045,460 0.11%
Citrix Systems, Inc. CTXS $13,315,715,305 0.11%
PPG Industries, Inc. PPG $13,273,262,229 0.11%
Valero Energy Corporation VLO $13,264,019,620 0.11%
Cameron International Corporation CAM $12,947,105,394 0.11%
The Hershey Company HSY $12,869,562,120 0.11%
Altera Corporation ALTR $12,804,504,572 0.11%
Omnicom Group Inc. OMC $12,662,922,014 0.11%
Cliffs Natural Resources Inc CLF $12,576,434,938 0.10%
Juniper Networks, Inc. JNPR $12,575,097,791 0.10%
CIGNA Corporation CI $12,573,362,858 0.10%
V.F. Corporation VFC $12,535,971,652 0.10%
Xerox Corporation XRX $12,490,918,065 0.10%
SunTrust Banks, Inc. STI $12,477,718,557 0.10%
Sprint Nextel Corporation S $12,415,540,196 0.10%
International Paper Company IP $12,408,286,744 0.10%
The Progressive Corporation PGR $12,365,547,853 0.10%
Ameriprise Financial, Inc. AMP $12,254,759,406 0.10%
Humana Inc. HUM $12,223,598,663 0.10%
Edison International EIX $12,015,917,625 0.10%
Polo Ralph Lauren Corporation RL $11,927,683,914 0.10%
Sempra Energy SRE $11,895,646,899 0.10%
Macy’s, Inc. M $11,876,938,463 0.10%
The Western Union Company WU $11,853,474,617 0.10%
Sara Lee Corp. SLE $11,851,324,810 0.10%
C.H. Robinson Worldwide, Inc. CHRW $11,839,451,530 0.10%
Nucor Corporation NUE $11,801,008,328 0.10%
AutoZone, Inc. AZO $11,699,283,846 0.10%
Murphy Oil Corporation MUR $11,683,988,685 0.10%
Parker-Hannifin Corporation PH $11,674,930,285 0.10%
Goodrich Corporation GR $11,607,985,827 0.10%
Entergy Corporation ETR $11,580,373,932 0.10%
Ingersoll-Rand PLC IR $11,527,926,625 0.10%
Ecolab Inc. ECL $11,490,683,983 0.10%
Xcel Energy Inc. XEL $11,362,862,864 0.09%
Whole Foods Market, Inc. WFM $11,233,592,670 0.09%
AvalonBay Communities, Inc. AVB $11,202,707,730 0.09%
CONSOL Energy Inc. CNX $11,194,208,971 0.09%
Limited Brands, Inc. LTD $11,165,059,385 0.09%
Fifth Third Bancorp FITB $11,157,394,107 0.09%
CF Industries Holdings, Inc. CF $11,081,337,131 0.09%
Zimmer Holdings, Inc. ZMH $11,045,437,842 0.09%
Dover Corporation DOV $11,016,302,422 0.09%
Marriott International, Inc. MAR $10,985,847,151 0.09%
Staples, Inc. SPLS $10,961,178,205 0.09%
Stanley Black & Decker, Inc. SWK $10,891,174,202 0.09%
Cerner Corporation CERN $10,875,056,970 0.09%
CA, Inc. CA $10,800,497,653 0.09%
Discovery Communications Inc. DISCA $10,641,170,798 0.09%
Avon Products, Inc. AVP $10,595,387,198 0.09%
M&T Bank Corporation MTB $10,592,447,002 0.09%
Campbell Soup Company CPB $10,576,818,774 0.09%
The Gap Inc. GPS $10,573,689,449 0.09%
FMC Technologies, Inc. FTI $10,522,019,809 0.09%
Fluor Corporation (NEW) FLR $10,516,158,167 0.09%
Republic Services, Inc. RSG $10,471,313,838 0.09%
Host Hotels & Resorts, Inc. HST $10,457,969,329 0.09%
AmerisourceBergen Corp. ABC $10,454,419,185 0.09%
Northern Trust Corporation NTRS $10,447,018,785 0.09%
Nordstrom, Inc. JWN $10,405,256,983 0.09%
Brown-Forman Corporation BF.B $10,381,862,533 0.09%
Range Resources Corp. RRC $10,372,180,783 0.09%
Boston Scientific Corporation BSX $10,349,974,495 0.09%
ConAgra Foods, Inc. CAG $10,302,754,319 0.09%
Weyerhaeuser Company WY $10,212,613,907 0.08%
Chipotle Mexican Grill, Inc. CMG $10,205,543,329 0.08%
Pioneer Natural Resources PXD $10,154,233,892 0.08%
SanDisk Corporation SNDK $10,140,333,698 0.08%
Best Buy Co., Inc. BBY $10,088,167,631 0.08%
Rockwell Automation ROK $10,080,957,841 0.08%
Analog Devices, Inc. ADI $10,037,722,920 0.08%
W.W. Grainger, Inc. GWW $9,979,323,454 0.08%
Hartford Financial Services HIG $9,947,413,074 0.08%
First Solar, Inc. FSLR $9,930,020,675 0.08%
Harley-Davidson, Inc. HOG $9,925,792,205 0.08%
Paychex, Inc. PAYX $9,911,092,835 0.08%
Starwood Hotels & Resorts Worldwide, Inc HOT $9,889,876,212 0.08%
Forest Laboratories, Inc. FRX $9,883,008,000 0.08%
Expeditors International of Washington EXPD $9,853,978,950 0.08%
Invesco Ltd. IVZ $9,653,270,913 0.08%
Fastenal Company FAST $9,609,150,715 0.08%
Ventas, Inc. VTR $9,522,503,107 0.08%
The Clorox Company CLX $9,478,610,862 0.08%
ITT Corporation ITT $9,352,279,860 0.08%
Tiffany & Co. TIF $9,331,988,871 0.08%
Joy Global Inc. JOYG $9,318,061,134 0.08%
Teradata Corporation TDC $9,174,279,742 0.08%
Noble Corporation NE $9,172,336,441 0.08%
The AES Corporation AES $9,141,673,601 0.08%
Diamond Offshore Drilling, Inc. DO $9,121,564,114 0.08%
EQT Corporation EQT $9,024,321,236 0.08%
Principal Financial Group, Inc. PFG $8,971,222,317 0.07%
Fortune Brands, Inc. FO $8,932,261,079 0.07%
Ross Stores, Inc. ROST $8,913,239,973 0.07%
NVIDIA Corporation NVDA $8,890,271,293 0.07%
Watson Pharmaceuticals, Inc. WPI $8,843,130,417 0.07%
Laboratory Corp. of America Holdings LH $8,834,633,817 0.07%
Fidelity National Information Services FIS $8,834,250,119 0.07%
Mattel, Inc. MAT $8,822,568,934 0.07%
Coca-Cola Enterprises Inc. CCE $8,800,288,129 0.07%
Mylan Inc. MYL $8,700,022,928 0.07%
The J.M. Smucker Company SJM $8,668,709,937 0.07%
Newfield Exploration Co. NFX $8,618,295,444 0.07%
IntercontinentalExchange, Inc. ICE $8,603,662,383 0.07%
Health Care REIT, Inc. HCN $8,558,592,888 0.07%
Fiserv, Inc. FISV $8,415,614,460 0.07%
Expedia, Inc. EXPE $8,403,193,531 0.07%
Xilinx, Inc. XLNX $8,343,294,684 0.07%
Amphenol Corporation APH $8,281,067,268 0.07%
Molson Coors Brewing Company TAP $8,263,372,468 0.07%
Edwards Lifesciences Corp EW $8,256,894,768 0.07%
Dr Pepper Snapple Group Inc. DPS $8,220,627,264 0.07%
CenterPoint Energy, Inc. CNP $8,218,936,120 0.07%
DTE Energy Company DTE $8,209,064,461 0.07%
NYSE Euronext NYX $8,184,879,940 0.07%
C.R. Bard, Inc. BCR $8,176,812,230 0.07%
Rockwell Collins, Inc. COL $8,175,057,438 0.07%
Moody’s Corporation MCO $8,148,581,244 0.07%
Quest Diagnostics Incorporated DGX $8,112,173,029 0.07%
Genuine Parts Company GPC $8,042,251,806 0.07%
Hospira, Inc. HSP $8,027,490,714 0.07%
Sherwin-Williams Company SHW $8,026,172,127 0.07%
Lincoln National Corporation LNC $7,984,039,220 0.07%
Leucadia National Corp. LUK $7,955,524,530 0.07%
O’Reilly Automotive, Inc. ORLY $7,903,076,735 0.07%
SLM Corporation SLM $7,883,609,782 0.07%
Sigma-Aldrich Corporation SIAL $7,854,779,946 0.07%
Autodesk, Inc. ADSK $7,840,894,757 0.07%
Red Hat, Inc. RHT $7,790,385,191 0.06%
L-3 Communications Holdings, Inc. LLL $7,767,492,843 0.06%
Life Technologies Corp. LIFE $7,740,559,696 0.06%
Western Digital Corp. WDC $7,704,110,146 0.06%
Constellation Energy Group, Inc. CEG $7,668,843,449 0.06%
Hormel Foods Corporation HRL $7,647,468,371 0.06%
Cabot Oil & Gas Corporation COG $7,642,288,973 0.06%
BMC Software, Inc. BMC $7,601,814,751 0.06%
Waters Corporation WAT $7,593,180,004 0.06%
Roper Industries, Inc. ROP $7,588,346,201 0.06%
KeyCorp KEY $7,554,270,313 0.06%
QEP Resources, Inc. QEP $7,543,230,542 0.06%
F5 Networks, Inc. FFIV $7,536,269,356 0.06%
DaVita Inc. DVA $7,519,198,166 0.06%
Unum Group UNM $7,501,042,002 0.06%
ONEOK, Inc. OKE $7,407,357,153 0.06%
Denbury Resources Inc. DNR $7,282,199,536 0.06%
Regions Financial Corporation RF $7,264,429,976 0.06%
Kimco Realty Corporation KIM $7,264,211,094 0.06%
Sears Holdings Corporation SHLD $7,253,977,990 0.06%
Southwest Airlines Co. LUV $7,217,800,842 0.06%
Scripps Networks Interactive, Inc. SNI $7,196,961,427 0.06%
Frontier Communications Corp FTR $7,155,624,667 0.06%
Nabors Industries Ltd. NBR $7,152,522,266 0.06%
Stericycle, Inc. SRCL $7,110,986,751 0.06%
Electronic Arts Inc. ERTS $7,070,922,367 0.06%
Varian Medical Systems, Inc. VAR $7,044,297,764 0.06%
Micron Technology, Inc. MU $7,017,825,800 0.06%
Wisconsin Energy Corporation WEC $7,014,726,517 0.06%
Apollo Group, Inc. APOL $6,891,932,512 0.06%
Ameren Corporation AEE $6,884,793,973 0.06%
Safeway Inc. SWY $6,867,000,294 0.06%
Helmerich & Payne, Inc. HP $6,846,061,376 0.06%
CarMax, Inc KMX $6,835,577,492 0.06%
XL Group plc XL $6,735,969,285 0.06%
Cablevision Systems Corporation CVC $6,646,027,421 0.06%
CB Richard Ellis Group, Inc. CBG $6,639,491,762 0.06%
Darden Restaurants, Inc. DRI $6,635,144,684 0.06%
Motorola Mobility Holdings Inc MMI $6,615,814,670 0.06%
KLA-Tencor Corporation KLAC $6,561,650,485 0.05%
Tyson Foods, Inc. TSN $6,534,552,494 0.05%
Linear Technology Corporation LLTC $6,524,582,279 0.05%
J.C. Penney Company, Inc. JCP $6,487,957,147 0.05%
McCormick & Company, Incorporated MKC $6,314,850,447 0.05%
Microchip Technology Inc. MCHP $6,301,067,303 0.05%
Iron Mountain Incorporated IRM $6,273,561,662 0.05%
National Semiconductor Corporation NSM $6,238,121,930 0.05%
Family Dollar Stores, Inc. FDO $6,170,798,773 0.05%
Abercrombie & Fitch Co. ANF $6,153,376,705 0.05%
Ball Corporation BLL $6,134,062,521 0.05%
Windstream Corporation WIN $6,089,058,839 0.05%
Cephalon, Inc. CEPH $6,080,622,802 0.05%
Plum Creek Timber Co. Inc. PCL $6,070,870,541 0.05%
FMC Corporation FMC $5,946,369,050 0.05%
Northeast Utilities System NU $5,842,468,346 0.05%
NiSource Inc. NI $5,772,514,758 0.05%
Textron Inc. TXT $5,714,968,827 0.05%
NRG Energy, Inc. NRG $5,704,175,546 0.05%
Wyndham Worldwide Corporation WYN $5,692,612,424 0.05%
Allegheny Technologies Incorporated ATI $5,681,735,081 0.05%
CareFusion Corporation CFN $5,588,168,525 0.05%
Pall Corporation PLL $5,543,753,371 0.05%
Comerica Incorporated CMA $5,496,266,911 0.05%
SAIC, Inc. SAI $5,439,378,364 0.05%
Flowserve Corporation FLS $5,388,009,362 0.04%
United States Steel Corporation X $5,371,064,790 0.04%
International Game Technology IGT $5,284,238,252 0.04%
Airgas, Inc. ARG $5,270,442,753 0.04%
AutoNation, Inc. AN $5,267,055,222 0.04%
Computer Sciences Corporation CSC $5,228,157,431 0.04%
Hasbro, Inc. HAS $5,196,009,038 0.04%
DENTSPLY International Inc. XRAY $5,155,734,788 0.04%
Whirlpool Corporation WHR $5,112,598,790 0.04%
Verisign, Inc. VRSN $5,060,203,722 0.04%
Huntington Bancshares Incorporated HBAN $5,059,073,475 0.04%
MeadWestvaco Corp. MWV $5,010,844,676 0.04%
Urban Outfitters, Inc. URBN $5,001,505,628 0.04%
Harris Corporation HRS $4,972,215,770 0.04%
SCANA Corporation SCG $4,948,343,668 0.04%
Advanced Micro Devices, Inc. AMD $4,922,811,591 0.04%
Rowan Companies, Inc. RDC $4,875,266,052 0.04%
International Flavors & Fragrances Inc. IFF $4,867,330,641 0.04%
Jacobs Engineering Group Inc. JEC $4,857,165,580 0.04%
CMS Energy Corporation CMS $4,740,295,037 0.04%
Sunoco, Inc. SUN $4,707,806,484 0.04%
Coventry Health Care, Inc. CVH $4,645,297,372 0.04%
LSI Corporation LSI $4,584,774,154 0.04%
Pinnacle West Capital Corporation PNW $4,495,847,035 0.04%
Interpublic Group of Companies, Inc. IPG $4,488,548,956 0.04%
Newell Rubbermaid Inc. NWL $4,476,040,956 0.04%
Torchmark Corporation TMK $4,444,718,224 0.04%
Cincinnati Financial Corporation CINF $4,400,051,203 0.04%
Akamai Technologies, Inc. AKAM $4,393,320,156 0.04%
H&R Block, Inc. HRB $4,373,093,718 0.04%
Legg Mason, Inc. LM $4,320,875,206 0.04%
People’s United Financial, Inc. PBCT $4,309,193,934 0.04%
Vulcan Materials Company VMC $4,260,501,300 0.04%
Pepco Holdings, Inc. POM $4,248,390,466 0.04%
Pitney Bowes Inc. PBI $4,203,457,960 0.03%
Constellation Brands, Inc. STZ $4,172,976,945 0.03%
E TRADE Financial Corporation ETFC $4,151,255,140 0.03%
NASDAQ OMX Group, Inc. NDAQ $4,141,308,476 0.03%
FLIR Systems, Inc. FLIR $4,123,002,953 0.03%
DeVry Inc. DV $4,112,180,451 0.03%
Cintas Corporation CTAS $4,093,588,550 0.03%
Equifax Inc. EFX $4,082,379,550 0.03%
Hudson City Bancorp, Inc. HCBK $4,029,313,014 0.03%
Quanta Services, Inc. PWR $3,999,464,185 0.03%
TECO Energy, Inc. TE $3,946,240,312 0.03%
Molex Incorporated MOLX $3,921,326,820 0.03%
Zions Bancorporation ZION $3,852,105,891 0.03%
Integrys Energy Group, Inc. TEG $3,846,391,321 0.03%
Genworth Financial, Inc. GNW $3,842,180,963 0.03%
The Goodyear Tire & Rubber Company GT $3,787,596,662 0.03%
Jabil Circuit, Inc. JBL $3,740,200,741 0.03%
Robert Half International Inc. RHI $3,717,645,822 0.03%
MetroPCS Communications, Inc. PCS $3,684,474,617 0.03%
Masco Corporation MAS $3,625,527,041 0.03%
Owens-Illinois, Inc. OI $3,614,056,476 0.03%
D.R. Horton, Inc. DHI $3,596,037,249 0.03%
Patterson Companies, Inc. PDCO $3,514,296,817 0.03%
Total System Services, Inc. TSS $3,498,566,211 0.03%
The Dun & Bradstreet Corporation DNB $3,455,190,598 0.03%
R.R. Donnelley & Sons Company RRD $3,423,750,000 0.03%
Tesoro Corporation TSO $3,364,222,415 0.03%
Assurant, Inc. AIZ $3,357,476,148 0.03%
Sealed Air Corp. SEE $3,303,983,941 0.03%
Bemis Company, Inc. BMS $3,257,136,431 0.03%
GameStop Corp. GME $3,231,961,522 0.03%
Avery Dennison Corporation AVY $3,205,178,946 0.03%
Snap-on Incorporated SNA $3,194,254,408 0.03%
Lennar Corporation LEN $3,189,931,381 0.03%
Apartment Investment and Management Co. AIV $3,186,772,065 0.03%
The Washington Post Company WPO $3,141,239,761 0.03%
JDS Uniphase Corporation JDSU $2,966,096,531 0.02%
Titanium Metals Corporation TIE $2,945,849,105 0.02%
Leggett & Platt, Inc. LEG $2,940,797,446 0.02%
Gannett Co., Inc. GCI $2,880,463,157 0.02%
Novellus Systems, Inc. NVLS $2,760,945,401 0.02%
Harman International Industries Inc./DE/ HAR $2,743,435,498 0.02%
Lexmark International, Inc. LXK $2,729,398,391 0.02%
Ryder System, Inc. R $2,666,535,286 0.02%
PerkinElmer, Inc. PKI $2,560,822,010 0.02%
Tenet Healthcare Corporation THC $2,540,777,711 0.02%
Nicor Inc. GAS $2,456,705,544 0.02%
Big Lots, Inc. BIG $2,448,331,856 0.02%
Teradyne, Inc. TER $2,394,011,962 0.02%
PulteGroup, Inc. PHM $2,331,551,217 0.02%
First Horizon National Corporation FHN $2,312,640,351 0.02%
Federated Investors, Inc. FII $2,172,735,936 0.02%
Compuware Corporation CPWR $2,064,211,370 0.02%
Dean Foods Company DF $1,894,176,025 0.02%
SUPERVALU INC. SVU $1,744,336,204 0.01%
MEMC Electronic Materials, Inc. WFR $1,609,788,559 0.01%
Janus Capital Group Inc. JNS $1,509,123,886 0.01%
Tellabs, Inc. TLAB $1,462,892,851 0.01%
Monster Worldwide, Inc. MWW $1,420,982,860 0.01%
RadioShack Corporation RSH $1,365,969,499 0.01%
AK Steel Holding Corporation AKS $1,185,370,519 0.01%
Eastman Chemical Company EMN $996,439,882 0.01%
Marshall & Ilsley Corporation MI $0 0.00%

As you can see from the above table, Exxon (NYSE:XOM), the #1 contributor to the Dow index, is also the number #1 contributor to the S&P 500. Any movement in this stock affects the two major American markets.

The total value of the S&P 500 (in other words, the total market capitalization of all companies making up the S&P 500) is just over $12 trillion. Not a lot!

For those of you who are interested, here’s a breakdown of S&P listed companies by industry:

  • Finance: 82 listed companies
  • Services: 81 listed companies
  • Information: Technology: 72 listed companies
  • Industrials: 62 listed companies
  • Health: Care: 50 listed companies
  • Consumer/Non-Cyclical: 41 listed companies
  • Energy: 39 listed companies
  • Utilities: 35 listed companies
  • Basic: Materials: 30 listed companies
  • Telecommunications: 8 listed companies

Notes:

- The above data (market cap and contribution to the S&P 500) is valid as of August 4th, 2011.
- Marshall & Ilsley Corporation (MI) is inactive (hence the market cap of 0) yet it is still listed under the S&P 500.

This article (as well as all other articles on this website) is an intellectual property and copyright of Fadi El-Eter and can only appear on fadi.el-eter.com.

I know that this post has nothing to do with stocks, but I think that many MBA candidates will benefit from it, and that’s why I’m publishing it on my website.

When you want to apply for an MBA, you are asked for a statement of purpose, here’s what should be typically included:

- Explain why you want to pursue an MBA, while telling the reader a bit about yourself.
- Explain why you want to do an MBA at the specific university you are applying to.
- Conclude on how pursuing an MBA at the specific university you are applying to will help you fulfill your dreams.

Here’s my statement of purpose that I presented to JMSB (John Molson School of Business in Concordia) and got me accepted into the program:

I have made some drastic changes to my life since the beginning of the year: I have quit my job, I have started my own company, and I have freed myself from all the non-productive endeavors I was pursuing. Starting my own company was perhaps the most important change that I did, and what a change! It made me realize that when you’re the boss, you tend to work more because it’s your business, you tend to care more because it’s your business, and you want to learn more how to make your business better, because again, it’s your business. Since I was already working and caring more, I now wanted to learn more, and although I was an IT Manager in my last two jobs as an employee, I still lacked a lot when it comes to management, business, and people skills. I also knew that I was not following a standardized process when I’m running the business, my business; I’m merely applying what I’ve learned in my previous jobs, which may or may not be the right (or optimal) process. Learning more about all these things is no longer a want, it is now a need.

As I had already been accepted as an MBA student and had the chance to attend some sessions, I knew that an MBA is exactly what I want to become the man I want to be: It will give the discipline I so much need, it will give me the tools to run my business the right way, it will enhance my professional network (on the national and the international level), and, and last but not least, it will sharpen my management expertise.

But where I could do my MBA? I found that there is no better place than the John Molson School of Business at Concordia University (here in the very beautiful city of Montreal), not because I had already been accepted there in the past, but because of the school’s reputation and worldwide reach, the brilliant professors that teach in this school, the quality students that attend this school, and the advantage this school will give me over my business competitors.

I believe that an MBA at the JMSB is the right decision to advance myself and my business in this ever competitive world. It will open my eyes to opportunities I never knew existed before, it will complement my business, and it will make me a better man, a man who’s proud to look at the mirror and smile for the achievements he has made so far, and a man who can only see a bright, prosperous, and exciting future.

Feel free to adapt the above to your needs, and don’t forget to add your name (not mine) at the end of the document!

Good luck with your MBA!

August 2, 2011 | In: Technology

Will RIMM Recover?

I see him everyday, he looks sadder and sadder, yet still hopeful, he checks Google finance to see RIMM’s latest price, he then logs in to his investor’s account, maybe Google is wrong. To his horror, Google is right, RIMM has reached another new low.

I am talking about one of my work associates. The guy has a few thousand shares of RIMM which he bought at the ridiculous price of $80. His loss is now over $200,000 (yes, that’s two hundred thousand dollars). The guy never sold the stocks when he had the chance, instead, he kept them, thinking that the RIMM’s catastrophic fall is only a blip in its long term charts. Obviously he is wrong, he knows it, but he doesn’t want to admit it. He always asks this question loudly “Will RIMM ever recover?”.

I feel sorry for him, and I feel more sorry because I know that RIMM as a stock and RIM as a company are both finished. RIMM can never reach the $50 level again, never mind the $80. In fact, I think that RIMM will trade in the single digits by the end of the year (but I would not short it). Unless a miracle happens, like if RIM comes up with the next iPhone, then the company’s intrinsic value will worth nothing by the end of 2013. Too much competition, mediocre products, and wrong strategies are the main reasons for RIM’s imminent death.

RIM’s executives are apparently no longer oblivious to the fact that RIM is just two steps from its grave, and they’re trying all kinds of CPRs to revive it, but as the saying goes, “Stick a fork in it, it’s done”.

The Dow Jones Industrial Average, as most investors now, is an index that depends on the performance of 30 “Blue Chip” stocks. So what are these stocks? In order to answer this question, I have decided to compile a list of all the companies (or stocks) that make up the Dow. For your convenience, I have ordered these companies by market capitalization. I have also included, in the last column, their contribution to the Dow as a percentage.

Company Name Symbol Market Cap Contribution to the Dow
Exxon Mobil Corporation XOM $395,646,538,960 10.77%
Microsoft Corporation MSFT $229,502,396,805 6.25%
International Business Machines Corp. IBM $217,179,500,687 5.91%
Chevron Corporation CVX $208,814,942,261 5.68%
General Electric Company GE $190,192,556,880 5.18%
Wal-Mart Stores, Inc. WMT $183,038,659,036 4.98%
Johnson & Johnson JNJ $177,598,685,145 4.83%
AT&T, Inc. T $173,365,501,356 4.72%
The Procter & Gamble Company PG $172,220,212,861 4.69%
JPMorgan Chase & Co. JPM $158,167,592,983 4.30%
The Coca-Cola Company KO $155,946,934,898 4.24%
Pfizer Inc. PFE $152,088,863,910 4.14%
Intel Corporation INTC $118,393,659,595 3.22%
Merck & Co., Inc. MRK $105,345,145,797 2.87%
Verizon Communications, Inc. VZ $99,905,992,592 2.72%
Bank of America Corporation BAC $98,393,270,441 2.68%
McDonald’s Corporation MCD $89,742,547,964 2.44%
Cisco Systems, Inc. CSCO $87,837,954,577 2.39%
United Technologies Corporation UTX $75,277,775,876 2.05%
The Walt Disney Company DIS $72,997,734,454 1.99%
Hewlett-Packard Company HPQ $72,948,053,508 1.99%
Caterpillar Inc. CAT $63,689,184,816 1.73%
3M Company MMM $61,828,943,166 1.68%
Kraft Foods Inc. KFT $60,435,785,840 1.64%
American Express Company AXP $59,697,721,092 1.62%
The Home Depot, Inc. HD $55,617,130,526 1.51%
The Boeing Company BA $52,224,719,121 1.42%
E.I. du Pont de Nemours & Company DD $47,754,112,239 1.30%
The Travelers Companies, Inc. TRV $23,085,066,301 0.63%
Alcoa, Inc. AA $15,675,416,016 0.43%

As you can see from the above list, the Dow Jones consists of five computer related companies, three pharmaceuticals company, two banking companies, two oil companies, two telecommunication companies among others. 10% of the Dow is controlled by Exxon, the mega oil company.

Note: The above data (market cap and contribution to the Dow) is valid as of August 1st, 2011.

July 31, 2011 | In: Lists

Top 100 Lowest Volume Stocks

I like to call these bugs bunny stocks, you know, stocks that have only an average of a few hundred shares/day (mind your Berkshire Hathaway has a volume of a few hundred shares a day, but each share of that stock costs more than $100k). The thing about low volume stocks is that extremely vulnerable to manipulation. For example, if a stock that is trading at $5 has an average volume of 1,000 shares/day, then a trade of $10,000 (2,000 shares) will greatly affect that stock.

Without any further delay, here is the list of the top 100 stocks that have the lowest volume (in both the NYSE and the NASDAQ):

Rank Company Symbol Average Volume Last Volume Price
1 Bear Stearns Depositor TZF 55 205 28.14
2 River Valley Bancorp RIVR 177 300 16.35
3 Merrill Lynch Can HCH 192 300 130.00
4 Liberty Global, Inc. LBTYB 228 200 42.94
5 Haverty Furniture HVT-A 305 100 11.04
6 Moog Inc. Class B MOG-B 322 3500 41.00
7 Grupo Casa Saba SAB 358 1800 16.50
8 Park Bancorp, Inc PFED 389 100 3.00
9 Synthetic Fixed GJI 394 1000 25.11
10 Rand Capital Corporation RAND 405 10452 2.98
11 National Security NSEC 419 300 11.32
12 Constellation Brands STZ-B 422 100 20.32
13 WVS Financial Corporation WVFC 459 124 9.0857
14 Seneca Foods Corporation SENEB 495 660 25.47
15 FFD Financial Corporation FFDF 553 2300 16.00
16 Webster Preferred WBSTP 573 2002 10.80
17 Daily Journal Corporation DJCO 591 1344 73.00
18 Kent Financial Services KENT 691 200 1.1901
19 Gyrodyne Company GYRO 752 700 65.01
20 Sonesta International SNSTA 764 400 18.99
21 Jeffersonville Bancorp JFBC 800 1200 10.06
22 Citizens First Co CZFC 811 2200 7.40
23 Helix Biopharma C HBP 817 300 3.05
24 Glen Burnie Banco GLBZ 825 2799 8.4999
25 John Wiley & Sons JW-B 851 100 50.02
26 Ohio Legacy Corpo OLCB 866 1400 1.24
27 Elements BG Small BSC 906 600 12.9701
28 Lehman ABS Corpor CVB 911 2800 10.64
29 Forest City Enter FCE-B 917 17500 17.90
30 SYNTHETIC FIXED F GJK 922 2200 24.99
31 Structured Produc KRJ 934 200 25.8288
32 Mayflower Bancorp MFLR 948 800 8.8001
33 The Elmira Saving ESBK 956 625 16.45
34 BB&T Corporation MSDXP 973 2265 27.70
35 Electro-Sensors, ELSE 1000 1400 4.38
36 Landmark Bancorp LARK 1047 4700 16.00
37 Sterling Bancshar SBIBN 1055 500 25.69
38 Annapolis Bancorp ANNB 1127 154 4.14
39 James Hardie Indu JHX 1130 100 31.06
40 Birner Dental Man BDMS 1139 200 20.898
41 Synthetic Fixed-I GJH 1155 6500 9.34
42 Investors Real Es IRETP 1159 400 25.80
43 Lehman ABS Corp 6 XFR 1162 600 25.15
44 Siebert Financial SIEB 1172 2418 1.52
45 Lehman ABS Cp 7.8 JBI 1190 1504 26.45
46 Lehman ABS Corp C JZT 1190 2254 24.92
47 Trust Ctfs 2002 1 TZK 1239 1200 25.10
48 Evans Bancorp, In EVBN 1286 2700 13.77
49 TSR, Inc. TSRI 1292 1915 4.84
50 SVB Financial Gro SIVBO 1334 820 24.86
51 Lehman ABS Corpor XKO 1334 440 10.92
52 DNB Financial Cor DNBF 1338 5000 10.40
53 MS Structured Ass HJG 1402 1500 24.01
54 iPath Pure Beta B BCM 1408 900 48.07
55 PreferredPlus Tr PJR 1409 975 25.25
56 Preferred Plus Tr PJA 1425 600 25.70
57 Lehman ABS Corp 7 JZV 1456 2575 25.03
58 McCormick & Compa MKC-V 1466 711 48.7701
59 Merrill Lynch Dep PYV 1467 750 25.16
60 Corts Tr Boeing C HYM 1477 2101 25.50
61 Structured Produc KTN 1498 200 27.97
62 Bank of South Car BKSC 1528 430 10.35
63 New Century Banco NCBC 1538 2142 4.2601
64 Structured Produc HYY 1539 400 25.35
65 MS Structured Ass HJA 1564 6066 25.25
66 First Bancshares, FBSI 1567 200 6.75
67 Fauquier Bankshar FBSS 1578 100 12.14
68 Merrill Lynch Dep CPP 1594 1300 25.13
69 Preferred Plus Tr PKJ 1595 324 25.35
70 Harleysville Savi HARL 1609 2550 14.98
71 Community Financi CFFC 1642 300 3.53
72 Investors Title C ITIC 1675 857 38.10
73 New York Communit HAVNP 1676 4423 11.40
74 Good Times Restau GTIM 1697 810 1.77
75 Hubbell Inc A Com HUB-A 1717 8051 54.00
76 ACNB Corporation ACNB 1727 1543 15.286
77 First Community Corporation FCCO 1747 1040 6.58
78 Nobility Homes NOBH 1765 2036 7.90
79 Plumas Bancorp PLBC 1809 520 2.1494
80 Lehman ABS Corpororation JZS 1817 200 23.36
81 Stratus Properties STRS 1823 194 13.58
82 Norwood Financial NWFL 1844 300 26.755
83 HMN Financial, Inc. HMNF 1881 200 2.35
84 Lehman ABS 6.30 JBO 1923 2863 23.50
85 Mesa Laboratories MLAB 1941 500 33.06
86 North Central Banshares FFFD 1956 3100 17.64
87 Community Bank CBIN 1963 2300 10.50
88 MS Structured Asset DKQ 1966 300 22.39
89 Bel Fuse Inc. BELFA 1973 8200 20.60
90 Pax MSCI North America NASI 1997 357 27.99
91 Perfumania Holdings PERF 2055 1051 13.33
92 Citizens Community Bank CZWI 2059 400 6.28
93 Baldwin & Lyons BWINA 2072 732 25.69
94 Lehman ABS 3.50 JBK 2083 2075 22.22
95 Saturns Goldman Sachs DKP 2102 1698 24.02
96 TIB Financial Cor TIBB 2141 882 13.00
97 Merrill Lynch Dep PKH 2188 1300 25.51
98 Lehman ABS Corpor CWZ 2203 2050 26.03
99 PPlus Trust Ser C PYJ 2223 867 25.20
100 California First CFNB 2266 1084 15.52

Notes:

- Only NYSE and NASDAQ stocks are included in this list. This list does not include AMEX and OTC stocks.
- There are some stocks such as PGEB that have an average volume of 5 stocks a day, but I’ve opted not to list them because they didn’t have any volume this last Friday. I wanted to list only active stocks.

July 29, 2011 | In: Financial

Is BAC a Good Buy?

I have traded BAC many many times before, and I have stopped trading it back in January. The reason why I stopped trading it is because it was one of the very few stocks (and the only non-bear stock) that I have lost money on. It’s not that I think this stock is jinxed, it’s just that I’m now burned so many times before because of BAC that I dread even thinking about buying it.

In any case, the stock is currently trading below the $10 level, which means that the stock is, by all standards, cheap. But the question is, is it a good buy?

Here are some facts about Bank of America:

- It is still one of the most powerful banks in the United States, with some exposure to Europe (and its myriad of problems).
- Its market capitalization has dropped below $100 billion for the first time since April 2009 (when recession was at its peak)
- It is resolving, slowly but surely, its problems with the government.
- It is addressing its exposure to the sub-mortgage crisis.
- Its stock is trading at its lowest since April of 2009.
- Its stock has been showing bearish technical movement since mid 2010 (which means it will take some time to confirm that the stock has reversed the bearish trend).
- Its stock is consistently outperformed by that of Citigroup (Hmmm, check my article about Transocean and Noble, maybe at one point BAC will catch up with C)
- Its stock is trading more than 50% below its book value (which is $20.29).
- Bank of America is here to stay.
- The gloomy days are over, it’s just that investors (like me) really hate this stock and are afraid of it.
- Once the bank shows a positive EPS, the stock will jump!

I think BAC has a huge chance of becoming a good stock, simply because it is way undervalued by most standards, and the bank has a huge potential once the sky becomes clear. But I will definitely stay away from it until I see a clear sign that BAC has reverted its bearish trend.

I am constantly monitoring LinkedIn’s Stock (NYSE:LNKD), and I can’t help but comment on this stock (even though I will never ever trade it): This stock is one of the most overvalued stocks of all times, here’s why:

- It is currently trading at a P/E ratio of around 2,800 (2,770 at this very moment). Which means that it will take LinkedIn 2,800 years to buy back its public debt with the current earnings.

- LinkedIn might be soon crushed by Facebook, Google, or maybe another emerging social website.

- LinkedIn has one of the worst CTR of all time (some say that the CTR on LinkedIn’s “targeted” ads is less than 0.01%). This is because of the demographics of LinkedIn’s visitors.

- LinkedIn can be easily cloned. It’s not the most intelligent website on this planet.

- There was no reason (other than to fill the founders’ pockets) for LinkedIn to go public. Think about it, why did they need the money in the first place? The company was making enough and it was profitable.

I guess everyone who’s long on LNKD is either a sucker or is someone who knows something I don’t. In my opinion, there will be another market crash because of all these junk stocks (such as LNKD, YOKU, DANG, and maybe FB) in the next year or two.

Let’s see!

July 27, 2011 | In: General

What Is a Good P/E Ratio?

A P/E Ratio (meaning the Stock Price/Earnings ratio) is an important metric in assessing the health of a stock. A P/E Ratio is simply the price of the stock divided by the current yearly earnings per share. Let’s look at C (NYSE:C). C has a current price of $39.72 and its current yearly earnings (also known as EPS or Earnings Per Share) are $3.29. This means that C’s P/E ratio is $39.72 / $3.29 = 12.07. In other words, it will take Citigroup 12 years to buy back all its stock provided it can sustain the current EPS. Generally, the lower the P/E ratio is, the more of a bargain the stock is. However, this is not always the case….

I have discussed before the dangers of a low P/E ratio; in short, a very low P/E means that the investors do not trust neither the company nor its stock. This is generally due to a gloomy future that the investors believe that the company will face.

On the other hand, a very high P/E ratio means that the investors have high hopes and expectations about the stock, and the company persistently beats their expectations. Examples of stocks trading at a very high P/E ratio are: NFLX (P/E ratio is 76), AMZN (P/E ratio is 93), and LNKD (P/E ratio is 2825, which makes it one of the most overvalued stocks of all time).

So, we know now that both very high and very low P/E ratios are not signs of healthy stocks. So what is a good P/E ratio?

I think a P/E ratio between 10 and 30 is a good P/E ratio, it’s not that high, it’s not that low. Anything falling between 15 and 20 is ideal. Keep in mind, however, that a good P/E ratio alone is not the one and only sign of a good stock, there are many other factors that should be taken into consideration before deciding on buying a stock…

AAPL keeps outperforming the market with its stronger than expected results. The stock has moved from a low of $315 back in June 20th to a record $400 yesterday. The stock touched the $400.00 level for a second yesterday but eventually closed at $1.50 shy of that number (still a record though).

I expect AAPL to close above the $400 level today, and if the stock maintains a price above the $400 for the remainder of the week, then expect it to skyrocket next week, and who knows maybe it may reach $500 by the end of next week.

But the question is, how much is AAPL really worth?

Apple, as stated earlier in this post, keeps beating estimates every quarter, and there is no reason for it whatsoever to trade at a P/E of a mere 15.77. A P/E of 25 is fairer and more logical. Which means that a fair price for AAPL, if we take the current earnings into consideration (EPS = $25.26), should be 25 x $25.26 = $631.25. Yes, AAPL is worth 57% more than what it is worth today. Beware though, AAPL may collapse if the following happens:

- People start hating their products
- Mass media start conspiring against Apple and badmouthing them (I think they’ve done it before)
- Steve Jobs dies

Is AAPL too big to fail? I think not, but at the current moment, nobody wants it to fail, and that’s what really counts.