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November 2010 Nasdaq Winners
The biggest Nasdaq winners in November 2010 were a motley crew of companies from different sectors, including energy, retail, communications and consumer. They all made the list for very different reasons.
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Tesla Motors (Nasdaq:TSLA) was the best performing Nasdaq stock during November 2010, returning 62% to investors who took a chance on this electric car company. It is difficult to determine why investors are so excited about Tesla Motors. The company reported results for the third quarter of 2010 and came in with a loss of $34.9 million, or 38 cents per diluted share.
Tesla Motors is working on a lower cost electric car model to be released in 2012, and also expects to reports its first profit sometime that year. Despite the market enthusiasm, a market capitalization of $3.2 billion may be little high for a company that has never reported a profit and whose business model may be based on the continued high price of a commodity that is known for its price volatility.
Atlas Energy (Nasdaq:ATLS) also had a great month and finished up 47%. The company was the subject of a buyout offer from Chevron (NYSE:CVX), as the integrated oil majors look to stake a claim in the unconventional resource basins located in the onshore area of the United States. It's too bad Chevron had to spend $3.2 billion to accomplish this, as the company could probably have assembled and developed this acreage on its own for a lot less.
Loral (Nasdaq:LORL) moved up 31% during the month, as the company benefited from takeover speculation on Telesat Holdings, which is 64% owned by Loral. The latest market rumors have Telesat Holdings hiring investment banks to market the company, with Intelsat SA named as the interested party.
Deckers Outdoor (Nasdaq:DECK) has been drifting higher all fall, and then moved up even faster after reporting earnings for the third quarter of 2010, and beating consensus estimates by 14 cents per share. The company has made a habit out of beating estimates and has exceeded consensus on revenues and earnings for at least four straight quarters. Deckers Outdoor was also moved from the S&P 600 Small Cap Index to the Mid Cap 400, which might have spurred some additional interest from investors. The stock ended November up by 32%.
The Bottom Line
November returns on some Nasdaq stocks made investors happy, as these winners outdistanced the overall market by a wide margin. (For related reading, take a look at Riding The Momentum Investing Wave.)
Use the Investopedia Stock Simulator to trade the stocks mentioned in this stock analysis, risk free!
IN PICTURES: Baby Buffett Portfolio: His 6 Best Long-Term Picks
Tesla Motors (Nasdaq:TSLA) was the best performing Nasdaq stock during November 2010, returning 62% to investors who took a chance on this electric car company. It is difficult to determine why investors are so excited about Tesla Motors. The company reported results for the third quarter of 2010 and came in with a loss of $34.9 million, or 38 cents per diluted share.
Tesla Motors is working on a lower cost electric car model to be released in 2012, and also expects to reports its first profit sometime that year. Despite the market enthusiasm, a market capitalization of $3.2 billion may be little high for a company that has never reported a profit and whose business model may be based on the continued high price of a commodity that is known for its price volatility.
Loral (Nasdaq:LORL) moved up 31% during the month, as the company benefited from takeover speculation on Telesat Holdings, which is 64% owned by Loral. The latest market rumors have Telesat Holdings hiring investment banks to market the company, with Intelsat SA named as the interested party.
Deckers Outdoor (Nasdaq:DECK) has been drifting higher all fall, and then moved up even faster after reporting earnings for the third quarter of 2010, and beating consensus estimates by 14 cents per share. The company has made a habit out of beating estimates and has exceeded consensus on revenues and earnings for at least four straight quarters. Deckers Outdoor was also moved from the S&P 600 Small Cap Index to the Mid Cap 400, which might have spurred some additional interest from investors. The stock ended November up by 32%.
The Bottom Line
November returns on some Nasdaq stocks made investors happy, as these winners outdistanced the overall market by a wide margin. (For related reading, take a look at Riding The Momentum Investing Wave.)
Use the Investopedia Stock Simulator to trade the stocks mentioned in this stock analysis, risk free!
by
Eric Fox
Eric J. Fox, CFA, is a freelance financial writer and has previous experience working in the asset management industry as an equity analyst and portfolio manager on the buy side. His favorite area to write on is the energy sector and he keeps current on the industry by reading Haynesville Shale, Permian Oil and Gas and various other blogs.
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