Mobile App Index: 84.70 +2.53% WE 2/10/12

Definitely more volatility this week.  GLUU and MITK performed well during their earnings announcements.  While many of the stocks in the index went down this week, the winners managed to pull the index into positive territory and beat all of the major comparison indices -- the Europe/Greek debt crisis was on our minds this week and reflected in EEM in particular, which along with FONE ended their seven (7) week streak.  MobiAppIndex is on a three (3) week streak now. VELT and P have not communicated when they will announce earnings, but my expectation is that they will occur in Mid-to-late March.

Winners: MITK 25.11%, COBR 6.88%, GLUU 4.5%

Losers: ROVI (5.16%), VELT (5.07%), AUGT (4.31%), NCTY (3.76%), P (3.19%), VOCS (2.14%)

Comparison: DJI (0.47%), Nasdaq (0.06%), S&P500 (0.17%), EEM (2.23%), FONE (0.25%)

Prediction: MobiAppIndex will not have a 4th week in strongly positive territory -- it will be flat  (<1%) or negative.

On the subject of rebalancing and re-assessing the index, this is the current state of the changes:
1) stocks like LNKD, GRPN, ZNGA do not fit into this category
2) other new candidates considered were ETAK, MDCA, TBOW, EPOC, VRNG and others -- only EPOC fits and will be added.
3) BGO, which was previously removed, is back on the list for consideration in the future after it jumped 40% on 2/8 -- putting it over the $2/share minimum -- when a deal with Facebook mobile was announced.
4) The index should be subdivided into three basic categories and a percentage of the total should be allotted to each: Entertainment and Gaming (30%), Marketing (30%) and Unique Niche (40%). Percentages for each stock in these categories will be: 6% (GLUU, ROVI, P, NCTY, COOL), 10% (AUGT, VOCS, VELT), and 13.3% (COBR, MITK, EPOC) respectively.
Next week, I will begin tracking the rebalanced index, but will continue to report on the current index for a while.