REVENGE OF THE NERDS

Early on in 2013 the theme is to buy the biggest nerds the world has ever seen and sell short the cool kids. As AAPL declines, nerd stocks like NOK and RIMM soar. This must mean something, perhaps detrimental–but I haven’t figured it out yet.

I ran a screen looking for stocks that have grossly underperformed over the past two years that are +10% this year. Here are some names of interest.

RIMM +25%
AMD +11%
TRQ +12%
IRE +40%
HPQ +19%
MRVL +19%
CTCM +16%
BBY +22%
ALU +21%
ODP +29%
YOKU +19%
NOK +14%
SNE +13%

I can go on and on. I gots nerds for days.

Eventually this nerd stuff ends and the cool kids throw them down flights of stairs, snatch their lunch money, and give them wedgies.

Here are some underperforming “cool kids.”

MLNX -13%
IACI -11%
LULU -11%
FDO -9%
FIRE -8%
ASNA -9%
GME -6%
AAPL -6%
ANN -6%
CSTR -6%

This is not exactly a huge outlier. January tends to be a buy the dip month, following the tax loss selling of December. Ultimately fundamentals win and the nerds get stuffed back in their lockers. Only a select few get to put the suspenders down and join the football team, lift dumb-bells in the hallways, whilst talking to hot chicks wearing cheerleader costumes.

If you enjoy the content at iBankCoin, please follow us on Twitter