FAANG

To many, FAANG stocks define the market. To me, a conservative investor, it is not. For market-cap ETFs such as SPY, FAANG has more weights than other stocks. As a group, FAANG has been very profitable for the last year. To me they seem to be risky today. The following tables summarize them and I’ll check them one year later (or after September, the worst month of the year) to confirm my findings. It is also a case of momentum vs. value.

All the info are available free in web sites such as finviz.com. All data are based on 8/5/2017. They are for info only and I’m not liable for any errors.

Stocks	Current Price	Gain in a year
FB	169.62	36%
AMZN	173.85	30%
AAPL	156.39	48%
NFLX	180.27	93%
GOOGL	945.79	19%
Avg.1	247.41	45%
Beat SPY by		216%2
SPY (for comparison)		14%

¹ All averages in this article are estimates.

² Beat = (45% - 14%) /14%. Similar to other calculations for “Beat”.

Fundamentals

Stocks	P/E	P/E Forw	P/S	P/B	Debt/ Eq.	Sales Q/Q	EPS Q/Q	ROE
FB	37	26	15	7	0.00	45	69	23
AMZN	16	14	6	4	1.11	2	18	27
AAPL	18	15	4	6	0.73	5	10	35
NFLX	221	90	8	25	1.55	32	58	13
GOOGL	34	24	7	4	0.03	21	-28	14
Avg.	65	34	8	9	0.68	21	25	22
Beat SPY 1	164%		277%	186%
SPY2	25		2	3

¹ Very rough estimates.

² Most fundamental metrics are from other source than finviz.com, so there may be small discrepancy.

Technical

Stocks	SMA50%	SMA200%	RSI(14)	52-week height	Short%	Insider Trans.
FB	8%	23%	67	-3%	1%	-86%
AMZN1	35%	8%	51	-6%	1%	0%
AAPL	5%	17%	63	-2%	1%	-31%
NFLX	10%	26%	59	-6%	6%	-69%
GOOGL2	-2%	8%	41	-6%	0%	0%
Avg.	11%	16%	56	-5%	2%	-37%
Beat 3  SPY by	1020%	173%	-9%
SPY	1%	6%	62	0%

¹ Recent double top. Bearish.

² Multiple top.

³ Very rough estimates.

The two SMA (Simple Moving Average) technical metrics are positive.

Summary

As a group, FAANG is fundamentally unsound but technically sound compared to SPY. I said the same on the market.  As suggested, use trailing stops if you own any of these stocks. When they turn to be technically unsound, this is the time to exit. They could stay in the current valuations for a long time. However, when the institution investors are dumping them, they will fall very fast and steep. SMA-20% would be another indicator for exit. One’s opinion.

Afterthought

The above is written by a human being in 2017. You can see how easy for the robot to gather this info, analyze the data, confirm the results (using the historical database) and trade the stocks without any human interactions. 
Stock analysts, your professional days are numbered.

NFLX is the most fundamentally unsound. Will check its performance in one year.

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This article is written for my book Profit from 2017 Market Crash.
 

Western China

Warning. Italians may want to skip this one. The kangaroo was made in China. If you do not believe me, ask the kangaroo, but not the Australian.

Click here or type

https://www.youtube.com/watch?v=TiwIjK74JCk


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The above is also included in from my book "Can China Say No?". Click here for more info in Amazon.com. 

Live longer or happier.

There is no guarantee to live longer but to live happier.

Click here or type the following.

https://www.facebook.com/worldeconomicforum/videos/vb.7746841478/10154657155171479/?type=2&theater

Top down investing

Top-down investing: When the market and the specific sector (scenery) are good, look for the best stock in the sector (the lady) to make a potential profit (perfect picture). Today the market is too cloudy and many sectors are over-valued.

Understand your customers please

Some of the luxury hand bag companies forget their customers. Many Chinese, their main customers, do not understand English. If you take out the identifier such as "C" for Couch and "B" for another brand, you lose sales for sure. Coupled with deteriorating Chinese economy, they're not doing well. It is the deductive logic in momentum investing.

Do not fix them please

My friends complained that emails were returned with the domain name ymail.com Yahoo.com is OK. I read the difference between the two from Google and it does not make any sense to me. It must convert mine automatically to another domain at one time.

Yahoo!Finance takes out some metrics and features. If they are the 'enhancements' or avoiding some bugs, please do not fix them.

Book promotions in August

Here are the monthly promotions of my books. If you already have my book “Complete the Art of Investing”, there is no need for other books except sending this link to your friends.

My best sellers (Swing, Sector Rotation, Momentum and Complete the Art of Investing) usually have no promotion as they are low-priced already. Free books and the priced-reduced books are Kindle versions only. If the reader finds the book useful, s/he can buy the full version or “Complete the Art of Investing” which has 900 pages (6*9). Click the book name if available to access to more info in Amazon.com. Alternatively, type the name of the book in Amazon.com.  The following are subject to change without notice.

Books (Kindle version & printed books are also available)	List Price	Promotion Price	From	End on
Art of Investing: Scoring stocks		$0.99	8-24	8-31
Art of Investing: Technical analysis		$0.99	8-03	8-10
Art of Investing: Economy		Free	8-24	8-28
Dividend stocks		$2.99	8-08	8-15
Concise editions:
Finding stocks		Free	8-10	8-14
Buy Low & Sell High		Free	8-02	8-06
Buffettology		$0.99	8-16	8-23
Strategies		$2.99	8-17	8-24
Investing for beginners	$0.99	$0.99	Now	Eternity
My best sellers:		Already	discounted
Complete the Art of Investing1	$9.99
Swing Investing 3rd Edition2	$9.95
Sector Rotation 3rd Edition	$8.95
ETF Rotation for Couch Potatoes	$8.50
Momentum Investing. 2nd Edition	$6.95
Profit from 2017 Market Crash	$6.95

¹ If you have my book for over a year, it is time to upgrade the book.

² This book is the same as Sector + Momentum. If you are into these two strategies, buy this book as it has several chapters not found in Complete the Art of Investing.