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Value, dividend growth investing, large-cap
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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 benchmark for the worst case scenario.
Symbol Name Price P/E EPS Yield P/B % from Low
STNC 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 (NASDAQ: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.
Disclosure: No positions
Source: Our Nasdaq 100 Watch List: Stocks Within 10% of Lows