THE MOST POPULAR STOCK IS THE MOST PROFITABLE?

I don’t think so; honestly my one decade experience says the opposite of that. The most popular means most traded and most loved and owned by small investors, pops and moms and housewives.

The list of 20 most-traded U.S.-listed stocks was put together at the Journal’s request by AJO, an investment firm in Philadelphia, and is based on trading volume of 2014. This list it proves again that the most loved stocks by the mass they are far not the best investments. It seems to me this is an evergreen rule of the market, but most of the investors still love to buy those stocks which are recommended by CNBC or by family member or colleagues.

Out of 20 stocks 14 have declined, even as the broader stock market has rallied and 12 out of 20 most-traded stocks of the year are all down by double digits in percentage terms.

Here is the list of 14 losers and their 2014 performance:

1. Splunk down 2% 
2. Netflix down 6% 

They are in double digit loss:

1. First Solar (the solar-energy firm), down 11%; 
2. Lululemon Athletica, 18%; 
3. GameStop, 23%; 
4. Stratasys (one of the 3D printing firms), 24%; 
5. Pandora Media, 26%; 
6. Twitter, 34%; 
7. Groupon, 36%; 
8. Herbalife, 45%; 
9. Peabody Energy (the coal producer), 48%; 
10. SINA, a Chinese Internet firm, 55%; 
11. 3D Systems (the other 3D printing firm), 62%; 
12. Nu Skin Enterprises, down 70% this year. 

Here is the list of 6 winners and their 2014 performance:

1. American Airlines Group
2. Micron Tech. up 65%
3. Tesla up 63%
4. Facebook up 42%
5. Yahoo 28%
6. Salix Pharm., up 14%

The BFM Assets Team.