This post discloses the next batch of PowerRatings for the 7/12 and comments on the results of yesterday’s PRs:

Stocks with a PR of 9 on 7/12:

  • OPTV (3.97) – newly minted 9, was 8 yesterday
  • NTG (37.53) – 2nd day at 9
  • ILE (3.34) – 2nd day at 9
  • IDCC (27.30) – 2nd day at 9
  • ASPV (23.61) – 3rd day at 9

Let’s see how we would have done if we purchased any of yesterday’s 9’s:

  • NTG – down -1.47%
  • ILE – down -2.34%
  • ASPV – down 3.75%
  • IDCC – up 5.45%
  • FSII – up 3.07%
  • ENZ – up 1.92%
  • DXPE – up 1.53%
  • COGO – up 3.13%

Assuming that we purchased equal amounts of yesterday’s 9s, our overall return would be 1.88% minus commissions and bid/ask slippage. The S&P 500 was up 0.41% today, making stocks with a PR of 9 today yield better than 4.5 to 1 over the S&P 500.
An interesting note: the 3 stocks that performed the best (IDCC, FSII and ENZ) all went from a PR of 7 to a PR of 9 on Monday (FSII was a 4 on Friday, representing a huge jump in a few days). All the others either were an 8 over the weekend (ILE and DXPE) or remained a 9 (COGO and ASPV). Based on today’s results, it’s possible that what’s more important is not just whether the stock is a 9 today or not, but whether it advanced quickly to a 9 or just drifted there. I’ll continue to monitor this hypothesis for the remainder of this week.
To contrast the results for this basket of Monday’s stocks with a PR of 9, here’s how Friday’s stocks with a PR of 9 have performed since Monday’s open (the earliest you could have begun trading these stocks):

  • FMD – down -0.21%
  • COGO – down -4.40%
  • ASPV – down -14.95%

The average loss for these 3 stocks, assuming you purchased them in equal amounts, would be -6.52% in 2 days. Ouch! Granted, ASPV would probably have hit a stop loss on the first day, so the loss would probably be a little less in practical terms.
To further comment on FMD, which dropped from a 9 yesterday to an 8 today: it’s down 0.06% today on another tightly traded day. What an interesting stock to watch these past few days as it’s trading range has tightened–you can tell some institutional holders just dumped this one and few interested parties seem to be left to pick over the bones. I love this quote from Jim Cramer and MadMoney on 6/30 about FMD (read this and go look at the chart for a healthy laugh):

“Jim Cramer: I believe First Marblehead is going higher over the next year. The shorts have been consistently wrong on this student outsourcing play, which has defied the bear camp consistently by putting up strong numbers quarter after quarter. In addition, they are resigning all their major customers to new contracts.”

Finally, stocks with a PR of 1 are:

  • AD
  • GGXY
  • KMG
  • SBIT