How will new IBD100 format effect featured stocks?

[mooddude]

As you might know they now highlight buy points for stocks. That would probably mean that a lot of readers will want to buy them on Monday or later next week. Any opinions?

[skiracer]

This is the first time I'm hearing about this. Are they only doing it for the stocks in the IBD 100 an are they only giving entry for long positions or short positions also.
This could be a dangerous move for them if things don't go their way although Briefing.com has a column called the Swing Trader who makes recommendations for stocks both long and short plus his general commentary on the markets actions during the week. I've been a subscriber to their Platimum subscription for awhile an have been quite successful following up on his leads and suggestions for trades.
It should be interesting how IBD does with it because I don't see their discipline working in all markets conditions.

[mooddude]

They show mini-graphs and fundamentals for all IBD100 stocks, plus some deeper analysis for selected stocks like GOOG this week. They put a black frame around graphs of stocks currently within 5% of pivot points. Buying IBD100 leaders is now so obvious. I also think that could be dangerous, i.e. cause bigger than usual swings for such stocks.

I wanted to buy AHMC on Friday and now I regret I didn't since it was featured as being at a proper buy point in this IBD issue. It will most likely fly high on Monday.

[Runner]

I guess IBD is trying to increase subscriptions. Not a member and would be curious how this pans out. Many shorts love the IBD 100.

Think about it the herd buys because of the B/O and the shorts wait to ambush then. I think IBD teaches the 7% stop. Once it starts falling all the stops will get hit and cause an avalanche>lo

[billyjoe]

I have some problems with IBD , but you have to give them credit for making changes and attempting to come up with new formats from time to time. Don't we as individual investors try new ideas occasionally? How much these features effect the markets is debatable. Our measly buys are a drop in the bucket compared to institutional block purchases.

billyjoe

[scifos]

I wanted to buy AHMC on Friday and now I regret I didn't since it was featured as being at a proper buy point in this IBD issue. It will most likely fly high on Monday.

Good news for me, AMHC is 1/2 of my Portfolio of the Week next week and bought late yesterday.

[IIC]

Good news for me, AMHC is 1/2 of my Portfolio of the Week next week and bought late yesterday.

It will be interesting to see how the stocks w/ boxes around them do

[billyjoe]

Scifos,
Hope your AMHC doesn't gap up before opening Monday. IIC's picks are known for that. Too bad you can't get in on some pre-market action.

billyjoe

[New-born baby]

Amhc

Good news for me, AMHC is 1/2 of my Portfolio of the Week next week and bought late yesterday.

'Dude,

Here's a chart on AMHC. If the market is good this week, it would help a lot.

[mrmarket]

You know how IBD says that the IBD 100 outperforms the S&P 500? How do they calculate this number anyway?? Do they take the performance of the stocks after they enter the IBD 100 or before?

If they are accounting the pre-IBD 100 performance, then their claim is not only meaningless, it is ridiculous.

That would be like a mutual fund manager taking the highest return stocks and putting them in his portfolio on Dec 31 and then saying he had a killer year.

What am I missing?

[drutzen]

If they want to be like they are supposed to, they need to take the Monday closing price. Just like if an analyst upgrades a stock on Wed night after earnings came out, it doesn't count until Thurs close.
FWIW,
Results for this year, the 100 is from the Friday close.
100 -6.43
naz -11.56
dow -5.79
s p -4.89
russ 2k -9.54

IBD is not doing any better

[IIC]

You know how IBD says that the IBD 100 outperforms the S&P 500? How do they calculate this number anyway?? Do they take the performance of the stocks after they enter the IBD 100 or before?

If they are accounting the pre-IBD 100 performance, then their claim is not only meaningless, it is ridiculous.

That would be like a mutual fund manager taking the highest return stocks and putting them in his portfolio on Dec 31 and then saying he had a killer year.

What am I missing?

Who knows??? But I think the IIC 100 has outperformed the IBD 100 by 30%...now, somebody prove me wrong...LOL

Let's see how the boxed IBD 100's do today: AMHC CVH SRX BRG

[mrmarket]

If they want to be like they are supposed to, they need to take the Monday closing price. Just like if an analyst upgrades a stock on Wed night after earnings came out, it doesn't count until Thurs close.
FWIW,
Results for this year, the 100 is from the Friday close.
100 -6.43
naz -11.56
dow -5.79
s p -4.89
russ 2k -9.54

IBD is not doing any better

I don't understand this. What is the time frame you are talking about? Can you please explain the calculation?

[drutzen]

It is from Jan 1.
They are all from Fri close each week to Fri close next week, and then just add up the gain and loss percentages.
The indexes come close, but are not exact by doing it this way but it is the best way to compare them to the 100.
Since the 100 changes stocks each week, it is the easiest way to see how the 100 is doing.

The problem that does come up though is the following.
say an index is 100 and goes to 90 the first week, gives loss of 10%
next week it goes to 81 another loss of 10% for total of 20% loss, but year to date would only be loss of 19%

I've got a spreadsheet if anyone is interested

[mooddude]

Let's see how the boxed IBD 100's do today: AMHC CVH SRX BRG

Company | price | daily change | volume vs. 50-day average

AMHC $39.10 +$0.50 +160%
CVH $68.38 +$1.61 -19%
SRX $67.71 +$3.46 +139%
BRG $40.76 +$0.76 +146%

As you can see, all up on higher volume except CVH which is up on lower volume.