Another week of declines led to another new low for the Mobile Application Index. All of the major indices declined as well, so it appears that this week was just a general market trend. Maybe the Mobile Application Index was an early indicator for the broader markets again? Prediction of upward trend for the Mobile Application Index remains, but the broader indices will likely continue to decline through the week - this maybe a repeat of what we experienced in February. If so, then let's look for news on exotic derivatives that have come unglued.
Earning update: VOCS beat earnings expectations but did not see a bump in their share price following. Next week is a big week for earnings (see
highlighted below)
Upcoming Earnings:
11/1 MM, 11/2 GLUU, 10/30 EPOC, 11/5 ROVI, COBR 11/8, 11/13 VELT, 11/14 VRNG, 11/14 MITK, P 11/21, 1/9/2013 AUGT, 1/14/2013 COOL.
Winners: AUGT +15.15%, MM +11.47%, VRNG +1.78%
Losers: P (10.33)%, EPOC (7.95)%, MITK (7.46)%, COBR (5.94)%, VELT (5.19)%, COOL (3.67)%, VOCS (1.13)%
Comparison: DJI (1.77)%, Nasdaq (0.59)%, S&P500 (1.48)%, EEM (0.55)%, FONE (1.41)%
Ken,
ReplyDeleteI love the idea of creating my own stock index and have a few questions about yours.
- What are you using to perform your calculations and what is your weighting?
- Are you just querying Yahoo Finance from an excel file and doing the calculations there?
Thanks.
I update a spreadsheet each week for the calculation and use it to regenerate the graph.
ReplyDeleteHere's the basic method:
a) each stock is in a 'category.' the index uses: gaming and entertainment (e.g. GLUU), marketing (e.g. AUGT) and unique (stocks which do not have any similar counterparts like COBR),
b) give each category an overall percentage of the portfolio. Example: Unique is 40%, gaming and marketing are each 30% -- that defines 100% of the portfolio.
c) count up the number of stocks in each category and divide by the percentage in that category to arrive at a total percentage per stock
d) Choose an overall basis dollar amount like $100,000 and use that to determine the dollar amount for each stock
e) use the dollar amount to calculate the closest integer for number of shares for that stock
f) use the integer amount to calculate the real value of the stock in the index
g) each week update the value of the shares in each stock and regenerate the index value by using the closing price.
h) update the graph with the updated index value.
It's pretty straightforward, and I'm sure that software can be written to recalculate it in real-time or daily. Hope this helps. Thanks for inquiring.
You can also use the integer values for the shares of each stock to produce a portfolio on sites like Google Finance.
ReplyDelete