Out Fox The $treet

Historical analysis from Schaeffer's suggests that the annual adjustments in the NASDAQ-100 index typically provide buying opportunities for the stocks that are removed. As an example, the stocks kicked out last year averaged 57% returns for the year compared to only 34% for those added to the index last December. See the table below. The index makes a yearly adjustment at the end of December to rerank the top 100 non-financial stocks that are listed on the NASDAQ exchange. Read the full article at Seeking Alpha  Disclosure: Long SHLD. Please review the disclaimer page for more details. 

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 . Disclosure: No positions mentioned. Please review the disclaimer page for more details. 

The data is undeniable -- being added to or removed from a major index has a dramatic impact on stock prices over the next six months to a year. The NASDAQ-100 index is doing its annual update effective Dec. 23. Based on research from Schaefer's and raw numbers from the 2012 updates, investors clearly do better investing in the group removed from the index over the short run. For 2012, the stocks added to the index gained in line with the NASDAQ-100 over both the six-month and 12-month periods. The removals from the index actually smashed the index with an average six-month gain of 43.5% versus 8% for the index. The 12-month numbers were not as impressive, but still very strong at nearly 69% versus 32% for the index. Read the full article here . Disclosure: No positions mentioned. Please review the disclaimer page for more details. 

While shareholders typically cheer the inclusion of their stock in a major index such as the NASDAQ-100 ( QQQ ) , research and history tells a different story. Not only is inclusion typically based on a few years of excellent results, but also the process of being included in index funds can create a temporary peak in the stock. In the case of Green Mountain Coffee Roasting ( GMCR ), the specialty coffee and single serve beverage innovator had soared over the last year and comes amidst continuing questions regarding accounting procedures. Read the full article at Seeking Alpha. Disclosure: No positions mentioned. Please review the disclaimer page for more details. 

Historical research from Schaeffer’s shows that stocks entering the Nasdaq-100 shouldn’t be bought at that point. Typically the best stock to buy is the one leaving an index such as the Nasdaq-100. In the normal scenario, a company that leaves such a big index has faced a couple of weak years and the exclusion from the list places extra pressure on the stock. In essence, a catalyst that more » Disclosure: No positions mentioned. Please review the disclaimer page for more details. 

This article is the second part of a series focused on the stocks being removed from the Nasdaq-100 Index. The first part highlighted the stocks being removed and the research behind the benefits of investing in these stocks. This one will focus on analyzing which stock might provide the best investment opportunity. Valuation Metrics One way to ascertain the stock that provides the best value at the current levels is more » Disclosure: No positions mentioned. Please review the disclaimer page for more details. 

In a matter of a few months, Facebook (FB) has gone from a bumbling internet behemoth to a tech darling. Now prior to market open on Wednesday, the tech giant will be added to the NASDAQ-100 Index according to the news release by NASDAQ OMX Group (NDAQ) . An event easily predicted, but another example that has added to the momentum for the stock. The stock has jumped 50% since mid-November when it traded around $19. At the current price of nearly $28, the company trades at extreme valuations that could finally help the short thesis. As a firm hoping to short Facebook stock (see articles here ), the NASDAQ-100 event could be a signal of a top. Plenty of funds will be forced to buy the stock, hopefully pushing it to near-term highs. An important question is whether being adding to the index signaled past tops? Similar to how the stock lockup that created potential added sales actually produced the November bottom and the ensuing rally. Read the full article at Seeking Alpha. Discl...