Trade Alert – Nasdaq
Despite my conviction that Nasdaq (NDAQ) is a great company, with good growth and earnings power, I have resigned myself from holding this stock. I have held on to this position for over 6 months and am staring at a 5% loss in NDAQ, when during the same period, the S&P 500 index is up some 6%. Clearly there is something thats holding this stock back, during a time that has seen Chicago Merc (CME) return 15%, Intercontinental (ICE) shoot up 100% and Internation Securities Exchange (ISE) pile on a 25% gain. Clearly, despite the right moves, NDAQ, after its post-IPO run, has been a laggard. For those of you who like to invest for the long-term, this is a stock I would hold for a long time. In fact, it will probably be one of those that will end up in my Stocks for the Long Run series. For the short-term investor with a need for higher returns, and I am one of those, I am selling it here, close to the 200-day moving average and buying more Andersons, Inc. (ANDE). Its risky to buy Andersons here after the huge recent run, but sometimes, risk means greater reward.
– Faisal Laljee
P.S: Check out the new Features section where you can get personalized stock advice under Name Your Stock and see how my picks and pans performed under Advice Tracker.
