The Black Box

[wahz]

WSJ Heard on the Street


Nasdaq 100 Castoffs
May Offer Investors
New Opportunities

By KEN BROWN
Staff Reporter of THE WALL STREET JOURNAL


When the Nasdaq Stock Market announced its annual changes to the Nasdaq-100 Index last week, investors responded predictably: Stocks that were added to the index generally rose, while those that were tossed out fell.

But if history is any judge, investors made the wrong bet.

A quick study of the stocks added and dropped in the past few years shows that investors would have been far better off buying the companies dumped from the widely watched index and selling those given the honor of joining the Nasdaq 100.