Saturday, April 10, 2010

Dead Cat Bounces of the S&P 500

Forget the Dogs of the Dow. How about the Dead Cat Bounces of the Standard & Poor's 500? A dead cat bounce takes place when a generally bad stock drops substantially and has a little bounce in price after the big drop. If you take a look at the stocks of the S&P 500 that have greatly underperformed other stocks in their industry, some interesting names turn up.

However, I wouldn't necessarily call them dead cats because most of them are fairly high quality stocks, however, because of their huge drop, there may be some buying opportunities.

One nice feature about all of these stocks which have underperformed their industry average by over 15% is that they all pay dividends of at least 1.5%. Shown below is the performance versus the other stocks in their industry, the market cap, and the yield.

Monsanto Company (MON) -21.7% $37.6B 1.5%
Sempra Energy (SRE) -17.9% $12.5B 3.1%
KLA-Tencor Corporation (KLAC) -17.7% $5.4B 1.9%
The Dun & Bradstreet Corporation (DNB) -17.4% $3.8B 1.9%
Archer Daniels Midland Company (ADM) -17.3% $18.2B 2.1%
H&R Block, Inc. (HRB) -16.7% $6.0B 3.3%
QUALCOMM, Inc. (QCOM) -15.8% $70.8B 1.8%

By the way, if yu like stocks that pay a high yeild, you should check out the high dividend stock lists at

Author does not own any of the above.


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