IB Net Payout Yields Model

NASDAQ-100 Index Removals to Watch

Plenty of studies show that the stocks removed from the NASDAQ-100 index typically present great buying opportunities. Normally the stocks have been beaten down for the last couple of years, making them candidates for removal. On top of that, the removal process causes forced selling in underlying products that attempt to benchmark the index, creating a market-event-generated bottom.

In December, the index makes an annual adjustment, which this year includes the removal of five stocks, effective as of Dec. 23. The stocks include Fossil (NASDAQ: FOSL  ) , Microchip Technology (NASDAQ: MCHP  ) , and DENTSPLY International (NASDAQ: XRAY  ) . One has to wonder whether the usual buying opportunity will materialize.

Read the full article here.

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