Are You Trading the Hype?

Thu Oct 24, 2013 9:54am EDT

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Are You Trading the Hype?

Wall Street and Main Street Don't Agree on What Stocks are Hot, According to Abel/Noser's Liquidity Analysis

PR Newswire

NEW YORK, Oct. 24, 2013 /PRNewswire/ -- In its quarterly study of liquidity in the U.S. equity markets, Abel/Noser offers new data that show differences between activity at the institutional investment firms and the activity of all investors. The data summarizes trading of all equities in the third quarter. Stocks are then ranked by their average dollars traded per day. That ranking is then compared to the ranking of those stocks seen traded in the Abel/Noser universe ($4 trillion in dollars traded) which is comprised of some of the largest institutional managers in the world. 

According to the analysis, the retail investor community has a heavy appetite for relatively new issue "high flyers"—stocks that are trading with high multiples—and subsequent media darlings like Facebook (Nasdaq: FB), Tesla Motors (Nasdaq: TSLA) and Netflix (Nasdaq: NFLX).

"Apple, for example is the most actively traded stock in the US.  It is ranked at the top in our universe of trades we analyze and also sits at the top of all trading.  It represents more than 4 percent of all US stock trading.  Tesla, on the other hand, ranked 5th in the US in dollars traded in the third quarter, but of the institutions we analyze was ranked only 346.  Tesla saw more trading volume than did names like Citigroup, Exxon, JPMorgan Chase, and GE, but among institutional trading, 345 other stocks traded more," noted Bill Conlin, President and Chief Executive Officer, Abel/Noser.

Other stocks which showed a particularly large gap between all trading (market rank) and institutional trading (universe rank):

  • General Motors (NYSE: GM), with a market rank of 40 and a universe rank of 141
  • Tesla Motors (Nasdaq: TSLA), with a market rank of 5 and a universe rank of 346
  • Yelp (NYSE: YELP), with a market rank of 164 and a universe rank of 1,187
  • Berkshire Hathaway A (NYSE: BRK.A), with a market rank of 524 and a universe rank of 2009
  • Abbott Labs (NYSE:ABT), with a market rank of 104 and a universe rank of 45
  • Time Warner (NYSE:TWX), with a market rank of 100 and a universe rank of 46

Stocks such as Apple (Nasdaq: AAPL), Microsoft (Nasdaq: MSFT) and Google (Nasdaq: GOOG) continue to pique the interest of all investors.

Other facts about liquidity:

  • The top 10 most liquid stocks ranked by average dollars traded per day make up 13% percent of all the dollars traded in more than 12,500 stocks that traded in the third quarter
  • One quarter of all the dollars that are traded are traded in just 40 stocks
  • It takes only the 188 most liquid stocks to trade half of all dollars
  • By stock rank 568, three quarters of all dollars have been traded, which means 4.5% of companies represent 75% of all activity

The liquidity report does not include ETFs as they tend to dominate individual stocks in value traded.

Liquidity Report: 07/01/2013 to 09/30/2013

Market Rank

Universe Rank

Symbol

Name

Average $ Per Day

Cumulative $ Per Day

% of Grand 'Total

Cumulative % of Total

1

1

AAPL

APPLE INC

5,958,821,376

5,958,821,376

4.04

4.04

2

44

FB

FACEBOOK INC-A

2,673,141,163

8,631,962,539

1.81

5.85

3

4

MSFT

MICROSOFT CORP

1,689,702,613

10,321,665,152

1.15

7.00

4

2

GOOG

GOOGLE INC-CL A

1,585,925,461

11,907,590,613

1.09

8.09

5

346

TSLA

TESLA MOTORS INC

1,489,089,109

13,396,679,723

1.02

9.11

6

26

BAC

BANK OF AMERICA CORP

1,333,677,312

14,730,357,035

0.91

10.02

7

12

C

CITIGROUP INC

1,163,141,504

15,893,498,539

0.79

10.81

8

3

XOM

EXXON MOBIL CORP

978,786,581

16,872,285,120

0.67

11.48

9

5

JPM

JPMORGAN CHASE & CO

971,955,072

17,844,240,192

0.66

12.14

10

14

CSCO

CISCO SYSTEMS INC

825,015,317

18,669,255,509

0.56

12.71

 

Full Liquidity Reporting is available for a small annual subscription price. Please contact info@AbelNoser.com or visit us at www.abelnoser.com

About Abel/Noser Corp.
Abel/Noser Is one of the oldest and largest independent agency brokerages providing a range of tools and services for institutional sponsors and investment managers. Abel/Noser offers comprehensive solutions and analytics throughout the pre-trade, execution and post-trade cycle, including Transaction Cost Analysis (TCA), domestic and international commission recapture for equities and fixed income, transition management, liquidity analysis and customized algorithms. Founded in 1975 and headquartered in New York, Abel/Noser is a member of the NYSE, FINRA and SIPC.

About Abel Noser Solutions
A sister company to Abel/Noser, Abel Noser Solutions was launched in 2007 to pioneer new trading methods, and to provide broker-neutral pre-trade, real-time and post-trade tools to institutional investors. Each day the company collects data from over 500 firms, and records trading data for over 20,000 stocks that trade on over 100 exchanges to provide one of the most comprehensive views of the industry. Clients receive actionable analysis at every point in the trade lifecycle, and on average pay commissions that are 44% lower than industry benchmarks.

Contacts:
Sharron Silvers / Taylor McGrann
KCSA Strategic Communications
212-896-1282 / 212-896-1253
ssilvers@kcsa.com / tmcgrann@kcsa.com 

SOURCE Abel/Noser Corp.

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