CNBC Survey: "Main Street" vs. "Wall Street"

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(Article by Becca Lipman. List compiled by Eben Esterhuizen, CFA. Data sourced from Fidelity.)

A survey by CNBC on the subject of the Federal Reserve and the economic recovery found that "Main Street" is more pessimistic than "Wall Street," with a majority expecting the US to fall back into a recession.

Almost 5,000 audience members of CNBC and CNBC.com participated in the survey to provide an interesting comparison of "Main Street" predictions relative to those of professional economists, money managers, and analysts ("Wall Street").


"In our unscientific online survey, 48 percent of you say there will be another quantitative easing program from the Fed in the next 12 months. Only 34 percent of the professionals in our Fed survey think that will happen."

"Wall Street" also surveyed as more optimistic on real U.S GDP growth in 2011 and 2012, and thinks the country is less likely to enter a recession.

The "Main Street" pessimism brings up some questions of preparedness for a market recovery. If the US were soon to experience a rally similar to March 2009, overly pessimistic and distant retail investors might miss out on the rebound while "Wall Street" investors would more likely reap the benefits.

It is worth considering how much bad news has already been priced into the markets, in anticipation for both present and future performance. "Main Street" retail investors should wonder at how much more can be priced in.

If the answer is little more, it may be reasoned that a rally, even a small one, could have a significant effect on the market.

Are you interested in hunting down some beaten up and rebound-ready candidates?

We were, so for ideas we collected institutional trading data, and identified a list of oversold stocks, according to the RSI(14) indicator. All of the stocks mentioned below have RSI(14) readings below 30, which usually signals oversold conditions.

Wall Street's big players seem to think most of the bad news is priced into these stocks--do you agree?

Analyze These Ideas (Tools Will Open In A New Window)

1. Access a thorough description of all companies mentioned
2. Compare analyst ratings for all stocks mentioned below
3. Visualize annual returns for all stocks mentioned

List sorted by market cap.

1. First Solar, Inc. (FSLR): First Solar, Inc. manufactures and sells solar modules using a thin-film semiconductor technology. RSI(14) indicator at 29.77. Net institutional purchases in the current quarter at 4.6M shares, which represents about 7.73% of the company's float of 59.51M shares.

2. Tele Norte Leste Participacoes S.A. (TNE): Provides telecommunication services primarily in Brazil. RSI(14) indicator at 29.95. Net institutional purchases in the current quarter at 21.1M shares, which represents about 7.23% of the company's float of 291.78M shares.

3. Youku.com Inc (YOKU): Operates as an Internet television company in the People's Republic of China. RSI(14) indicator at 29.54. Net institutional purchases in the current quarter at 33.2M shares, which represents about 59.13% of the company's float of 56.15M shares.

4. Dendreon Corp. (DNDN): Engages in the discovery, development, and commercialization of therapeutics to enhance cancer treatment options for patients. RSI(14) indicator at 27.50. Net institutional purchases in the current quarter at 7.9M shares, which represents about 5.71% of the company's float of 138.42M shares.

5. SouFun Holdings Ltd. (SFUN): Provides marketing, listing, technology, and information consultancy services to real estate and home furnishing industries in the People's Republic of China. RSI(14) indicator at 28.45. Net institutional purchases in the current quarter at 3.2M shares, which represents about 32.39% of the company's float of 9.88M shares.

6. GT Advanced Technologies, Inc. (GTAT): Provides polysilicon production technology and multicrystalline ingot growth systems, and related photovoltaic (PV) manufacturing services for the solar industry worldwide. RSI(14) indicator at 27.46. Net institutional purchases in the current quarter at 15.9M shares, which represents about 12.6% of the company's float of 126.19M shares.

7. Lone Pine Resources Inc. Common (LPR): Engages in the exploration, development, and production of oil and gas properties in Alberta, British Columbia, Quebec, and the Northwest Territories of Canada. RSI(14) indicator at 29.67. Net institutional purchases in the current quarter at 11.8M shares, which represents about 78.72% of the company's float of 14.99M shares.

8. RealD Inc. (RLD): RealD Inc. licenses stereoscopic three-dimensional or 3D technologies internationally. RSI(14) indicator at 29.68. Net institutional purchases in the current quarter at 9.1M shares, which represents about 22.34% of the company's float of 40.74M shares.

9. Kraton Performance Polymers Inc. (KRA): Kraton Performance Polymers, Inc., through its subsidiary, Kraton Polymers LLC, produces styrenic block copolymers (SBC) for use in industrial and consumer applications worldwide. RSI(14) indicator at 27.31. Net institutional purchases in the current quarter at 9.5M shares, which represents about 34.17% of the company's float of 27.80M shares.

10. Jiayuan.com International Ltd. (DATE): Operates an online dating platform in the People's Republic of China. RSI(14) indicator at 21.40. Net institutional purchases in the current quarter at 4.5M shares, which represents about 68.18% of the company's float of 6.60M shares.



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Investing Ideas , Stocks


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