|
 Nasdaq
100 Fundamentals Suggest Stock Market Bubble Still Exists
Although it is
difficult to remember, there once was a day where dividend yields were a
significant part of the return provided by stock market investments.
From 1880 to 2000 the dividends on the S&P 500 averaged
4.7%. Today, the dividend yield on the S&P 500 is 1.85%, much less
than one-half of the historical average yield. Unless business
fundamentals have changed in recent times, the relatively low dividend
yield is way out of whack. It is not different this time! But the
overvaluation in the US stock market is much more severe in some other
indices and sectors, especially the Nasdaq 100 index. I have compiled
some key statistics which are presented in Table 1.
Table
1 - Key Nasdaq 100 Statistics (Data from Yahoo Finance)
|
Nasdaq
100 Company
Name |
Symbol |
Last |
Dividend
Yield (% |
Trailing
P/E |
Insider
Purchases
(last 6-months |
Insider
Sales
(last 6-months) |
|
ACTIVISION
INC
|
ATVI
|
12.16
|
N/A
|
65.46
|
13,500
|
645,951
|
|
ADOBE
SYSTEMS INC
|
ADBE
|
38.76
|
0.02
|
32.1
|
N/A
|
1,028,870
|
|
ALTERA
CP
|
ALTR
|
19.92
|
N/A
|
26.53
|
N/A
|
824,496
|
|
AMAZON.COM
INC
|
AMZN
|
38.72
|
N/A
|
45.42
|
N/A
|
3,617,870
|
|
AMER
POWER CONV
|
APCC
|
20.2
|
2.49
|
27.85
|
N/A
|
3,049,830
|
|
AMGEN
|
AMGN
|
58.75
|
N/A
|
26
|
9,000
|
955,000
|
|
AMYLIN
PHARMA INC
|
AMLN
|
40.91
|
N/A
|
N/A
|
3,000
|
68,463
|
|
APOLLO
GP INC A
|
APOL
|
57.74
|
N/A
|
22.45
|
N/A
|
1,506,250
|
|
APPLE
COMPUTER
|
AAPL
|
71.32
|
N/A
|
37.26
|
N/A
|
4,178,400
|
|
APPLIED
MATERIALS
|
AMAT
|
19.23
|
0.62
|
29.68
|
50,000
|
1,240,050
|
|
ATI
TECHNOLOGIES
|
ATYT
|
17.36
|
N/A
|
N/A
|
N/A
|
N/A
|
|
AUTODESK
INC
|
ADSK
|
36.31
|
0.04
|
28.87
|
N/A
|
1,713,160
|
|
BEA
SYSTEMS INC
|
BEAS
|
10.43
|
N/A
|
27.65
|
N/A
|
1,777,500
|
|
BED
BATH & BEYOND
|
BBBY
|
35.53
|
N/A
|
19.27
|
4,300
|
2,038,160
|
|
BIOGEN
IDEC INC
|
BIIB
|
47.32
|
N/A
|
99.35
|
N/A
|
1,406,620
|
|
BIOMET
INC
|
BMET
|
36.68
|
0.69
|
22.6
|
N/A
|
682,456
|
|
BROADCOM
CORP CL
|
BRCM
|
44.9
|
N/A
|
39.95
|
N/A
|
2,510,900
|
|
C.H.
ROBINSON WW
|
CHRW
|
44.02
|
0.84
|
36.49
|
7,030
|
244,125
|
|
CADENCE
DESIGN SY
|
CDNS
|
17.78
|
N/A
|
111.91
|
N/A
|
N/A
|
|
CDW
CORP
|
CDWC
|
57.16
|
0.75
|
17.5
|
N/A
|
3,729,510
|
|
CELGENE
CP
|
CELG
|
71.83
|
N/A
|
214.88
|
N/A
|
35,000
|
|
CHECK
POINT SOFTW
|
CHKP
|
21.12
|
N/A
|
16.27
|
N/A
|
N/A
|
|
CHECKFREE
CORP
|
CKFR
|
50.09
|
N/A
|
52.85
|
N/A
|
139,192
|
|
CHIRON
CP
|
CHIR
|
45.5
|
N/A
|
46.55
|
N/A
|
1,128,220
|
|
CINTAS
CP
|
CTAS
|
40.9
|
0.87
|
22.07
|
N/A
|
4,900,000
|
|
CISCO
SYS INC
|
CSCO
|
19.67
|
N/A
|
22.48
|
2,000
|
4,563,700
|
|
CITRIX
SYSTEMS
|
CTXS
|
31.46
|
N/A
|
32.87
|
20,000
|
295,000
|
|
COGNIZANT
TECH SO
|
CTSH
|
56.67
|
N/A
|
57.36
|
N/A
|
202,701
|
|
COMCAST
CP A
|
CMCSA
|
26.52
|
N/A
|
62.5
|
N/A
|
N/A
|
|
COMVERSE
TECH INC
|
CMVT
|
28.8
|
N/A
|
51.89
|
N/A
|
615,240
|
|
COSTCO
WHOLESALE
|
COST
|
51.51
|
0.91
|
22.81
|
N/A
|
493,000
|
|
DELL
INC
|
DELL
|
29.75
|
N/A
|
23.05
|
1,300
|
20,122,500
|
|
DENTSPLY
INTL INC
|
XRAY
|
55.02
|
0.46
|
97.47
|
1,000
|
1,034,440
|
|
DISCOVERY
HLDNG A
|
DISCA
|
14.53
|
N/A
|
107.19
|
N/A
|
N/A
|
|
EBAY
INC
|
EBAY
|
41.35
|
N/A
|
52.58
|
1,000
|
5,637,570
|
|
ECHOSTAR
COMMUN A
|
DISH
|
28.51
|
N/A
|
8.99
|
1,500
|
123,312
|
|
ELECTRONIC
ARTS
|
ERTS
|
51.43
|
N/A
|
62.56
|
550
|
1,104,630
|
|
EXPEDIA,
INC.
|
EXPE
|
20.3
|
N/A
|
N/A
|
N/A
|
N/A
|
|
EXPEDITORS
INTL
|
EXPD
|
77.82
|
0.4
|
38.77
|
N/A
|
332,992
|
|
EXPRESS
SCRIPTS C
|
ESRX
|
93.91
|
N/A
|
37.78
|
N/A
|
190,514
|
|
FASTENAL
CO
|
FAST
|
43.09
|
0.86
|
37.5
|
12,000
|
369,700
|
|
FISERV
INC
|
FISV
|
41.76
|
N/A
|
15.24
|
N/A
|
582,939
|
|
FLEXTRONICS
INTL
|
FLEX
|
10.55
|
N/A
|
36.18
|
N/A
|
|
