Monday, September 7, 2020

Giant 14 of Stocks

 This is an update of my previous article, The Big 8 of Stocks.  The Giant 14 are all big stocks, mostly tech stocks, that have all risen greatly this year (and then dropped sharply).   This is the same as my previous Big 8 list, with Berkshire Hathaway removed, and a few smaller stocks included.  Here it is:

  1. Apple (AAPL)
  2. Microsoft (MSFT)
  3. Amazon (AMZN)
  4. Alphabet (GOOG)
  5. Facebook (FB)
  6. Alibaba (BABA)
  7. Tencent (TCEHY)
  8. Tesla (TSLA)
  9. Walmart (WMT)
  10. NVIDIA (NVDA)
  11. Adobe (ADBE)
  12. Verizon (VZ)
  13. Salesforce (CRM)
  14. Netflix (NFLZ)
See also The Wild Ride of the Giant 5 Stocks

Taiwan Semiconductor (TSMC) (current market cap $374B) could also possibly be a part of this list, but I am not that familiar with it.  

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Here is another list of the FANGMANTIS stocks:

These stocks have dropped between 5.8% (Intel) and 25.1% (Tesla) from their respective highs (date in parentheses):
  • Alphabet [GOOG]: -12.2% (Sep 2)
  • Amazon [AMZN]: -11.9% (Sep 2)
  • Apple [AAPL]: -16.5% (Sep 1)
  • Facebook [FB]: -11.9% (Sep 2)
  • Microsoft [MSFT]: -12.0% (Sep 2)
  • NVIDIA [NVDA]: -15.3% (Sep 2)
  • Netflix [NFLX]: -13.7% (Sep 1)
  • Tesla [TSLA]: -25.1% (Aug 31)
  • Intel [INTC]: -5.8% (Sep 2)
  • Salesforce [CRM]: -13.6% (Sep 1)
https://wolfstreet.com/2020/09/11/wild-ride-of-fangmantis-stocks-v-rest-of-market/

So these are the same list of stocks, minus Alibaba, Tencent, Walmart, Adobe and Verizon, plus Intel.  Intel has a market cap of $210 bn, making it the smallest company on the list.

Walmart had a high of 147.68 on Sept 2 and has since dropped 8.4%.
Adobe had a high of 533.80 on Sept 2 and has dropped 13.4% before recovering slightly.
Verizon had a high of 60.61 on Sept 3 and dropped 1.8% before recovering slightly.  So Verizon isn't acting like the other stocks.

So it looks like it is really the Giant 12 - the 14 from my original list, minus Alibaba, Tencent and Verizon, plus Intel.

Should Alibaba be in the list?  Maybe. It had a high of 298.00 on Sept 1 and then dropped 10.2%.  But here is the argument against Alibaba:  Alibaba [BABA] is not in the FANGMANTIS because it’s not a common stock; it’s an ADR, issued by a mailbox company in the Cayman Islands that has a contract with an entity of Alibaba in China. 
In other words, you can't trust that it actually owns shares in the company.

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