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Below are the Nasdaq 100 companies that are within 20% of their 52-week lows. This list is strictly for the purpose of researching whether or not the companies have viable business models. Although these companies are very risky, they provide significant opportunity to outperform the market in the coming year.
Symbol Name Trade P/E EPS Yield P/B % from Low
CSCO Cisco Systems, Inc. $18.40 13.92 $1.32 0.00% 2.25 0.93%
CEPH Cephalon, Inc. $56.17 10.66 $5.27 0.00% 1.66 2.13%
AMGN Amgen Inc. $52.32 10.92 $4.79 0.00% 2.04 4.10%
TEVA Teva Pharma. $50.32 13.73 $3.66 1.70% 2.07 7.09%
ATVI Activision Blizzard $11.27 34.15 $0.33 1.50% 1.30 12.81%
CELG Celgene Corp $54.26 28.86 $1.88 0.00% 4.83 12.99%
EXPE Expedia, Inc. $20.78 14.23 $1.46 1.40% 2.07 13.55%
MSFT Microsoft Corp $25.95 11.08 $2.34 2.40% 4.54 14.18%
MRVL Marvell Tech $16.13 12.28 $1.31 0.00% 2.27 16.29%
SPLS Staples, Inc. $20.43 17.78 $1.15 1.70% 2.25 17.08%
MICC Millicom Intl $89.59 5.88 $15.24 2.70% 3.07 18.96%

Watch List Insights

All things being equal, the number of shares outstanding affects the reported earnings of a company. Some companies have no debt but they have increased the shares outstanding by a significant amount. Ultimately, a company from 1994 with the same number of shares outstanding, or fewer, is a better value proposition as long as their debt hasn't increased at the same time.

Below is the watch list with the percentage change in the shares and the year the data started from. As you will note, companies like Amgen (NASDAQ:AMGN), Activision (NASDAQ:ATVI) and Microsoft (NASDAQ:MSFT) have decreased the number of shares outstanding. Provided their debt position hasn't increased in the same time frame, they may be quality investment opportunities.
Symbol
shares outstanding +/-
Since
CSCO
21%
1994
CEPH
82%
2000
AMGN
-6%
1994
TEVA
73%
2000
ATVI
-4%
2008
CELG
387%
1994
EXPE
17%
2004
MSFT
-7%
1994
MRVL
38%
2000
SPLS
53%
1994
MICC
n/a
n/a


Watch List Performance Review

In our ongoing review of the Nasdaq 100 Watch List, we have taken the stocks from our list of March 6, 2010 (article here) and have checked their performance one year later. The companies on that list are provided below with the closing price for March 5, 2010 and March 4, 2011.
Only three of the companies on our list managed to exceed the Nasdaq 100 while the other four on the list underperformed the index. Stericycle (NASDAQ:SRCL) was the biggest winner with a 55.19% gain. Apollo Group (NASDAQ:APOL) was the biggest loser over the last year with a decline of -29.01%.
Symbol Name 3/5/2010 3/4/2011
% change
FSLR First Solar $108.61 $146.57
34.95%
ERTS Electronic Arts $17.12 $18.79
9.75%
GILD Gilead Sciences $47.61 $40.71
-14.49%
APOL Apollo Group $62.39 $44.29
-29.01%
QCOM QUALCOMM $38.76 $58.15
50.03%
ATVI Activision Blizzard $11.03 $11.27
2.18%
SRCL Stericycle $55.35 $85.90
55.19%
Average
15.51%
NDX Nasdaq 100 1,888.56 2,359.96
24.96%


Disclosure: I am long CEPH.

Source: 11 Nasdaq 100 Stocks Within 20% of Their 52-Week Lows but Worth Tracking