TrimTabs Investment Research

The Leading Independent Institutional Research Firm for Equity Market Liquidity

 
 
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TrimTabs Investing:
Using Liquidity Theory
to Beat the Stock Market

Charles Biderman,
with David Santschi

• Buy Now
• More information

Hardcover, 2005
John Wiley & Sons, Inc.

TrimTabs In The Media

Forbes.com
Mar 20, 2007
- Smart Money Favors Stocks

"We remain leveraged bullish (200% long) on the U.S. stock market. Amid all the market turmoil during the past three weeks, two key factors have not changed: the U.S. economy continues to grow rapidly, and corporate America continues to announce massive float shrink. "
Forbes.com
Mar 12, 2007
- Boom Times By Scott Woolley

"The company Biderman founded, Trimtabs, has made a nice business selling its liquidity data to mutual funds and hedge funds for between $15,000 and $150,000 a year. More recently it has opened up its own fund for private clients, seeking to repeat its past success at calling market turns. (Following Trimtabs calls to buy S&P Index funds in bullish times and going to cash in bearish periods, Biderman says his fund would have yielded 104% since 1998, versus 48% for holding the S&P the entire time.)"
Businessweek.com
Mar 12, 2007
- What The Market Is Telling Us

"To the extent that U.S. mutual fund investors are interested in stocks at all, they're interested in foreign ones. According to fund-flow tracker TrimTabs Investment Research, last year saw U.S. funds draw just $20billion in inflows, compared with nearly $150 billion dedicated to hot foreign investments. If there are excesses in global markets, they're far more pronounced overseas than they are in the U.S. And if history is a guide, the U.S. market is where investors will run if and when emerging markets get choppier."
Forbes.com
Mar 5, 2007
- Spiders Start Sucking In More Money

"After three days of massive liquidation, U.S. equity ETFs issued $630 million last Friday, the largest inflow since Feb. 22. The leading issuers were the S&P Depositary Receipts (amex: SPY), or Spiders, which issued $676 million, and iShares Russell 2000 (amex: IWM), which issued $450 million. By contrast, Nasdaq 100 Trust (nasdaq: QQQQ) redeemed $959 million (5.8% of assets)."
MarketWatch.com
Mar 2, 2007
- Investors flee equity mutual funds By Ciara Linnane

"Investors withdrew an estimated $2.39 billion from global equity mutual funds tracked by TrimTabs Investment Research in the week ended Thursday, a sharp reversal from the $2.73 billion that flowed into the funds during the previous week."
Reuters
Mar 1, 2007
- UPDATE 1-Investors pull money from stock funds, ETFs-report

" TrimTabs Investment Research, a Santa Rosa, California-based firm that tracks market trends for institutions, said U.S. equity funds suffered an estimated $3.4 billion outflow during the week ended Feb. 28. Some $3 billion of that was withdrawn on Tuesday and Wednesday alone. TrimTabs also said U.S. exchange-traded funds bled $4.2 billion during the same period."
Forbes.com
Mar 1, 2007
- Broad Market Vipers Get Big Inflow

"Panic selling hit U.S. equity ETFs in the wake of Tuesday's market meltdown. After redeeming $2.1 billion on Tuesday, U.S. equity ETFs redeemed a staggering $2.7 billion on Wednesday. Breadth was barely positive at 28:23. Once again, the leading redeemers were IWM (iShares Russell 2000), which lost $1.8 billion (19.1% of assets), and SPY (Spiders), which lost $1.0 billion (1.7% of assets). IYR (iShares Dow Jones Real Estate) also posted a sizeable outflow, redeeming $212 million (11.0% of assets). The only fund issuing more than $100 million was QQQQ (Cubes), which issued $412 million (2.3% of assets)."
Dow Jones Newswire at Nasdaq.com
Mar 1, 2007
- Stock Mutual Funds Saw $2.39 Billion Outflow Thursday-Wed-TrimTabs By Nyrie Jackson

"Stock mutual funds saw an outflow of $2.39 billion during the week ended Wednesday, compared with an inflow of $2.7 billion during the previous week, according to TrimTabs Investment Research estimates. For the week ended Wednesday, domestic funds saw an outflow of $3.5 billion, compared with an inflow of $530 million during the previous week. International stock funds saw an inflow of $1.34 billion, compared with an inflow of $2.2 billion during the previous week."
Forbes.com
Feb 28, 2007
- U.S. Equity ETFs Bleed $2.1 Billion

"U.S. equity ETFs redeemed a whopping $2.1 billion on Tuesday, the highest outflow since a $3.2 billion outflow on Feb. 12. Breadth was positive at 34:17. The leading redeemers were both futures-related funds: SPY (Spiders) lost $1.5 billion (2.6% of assets), and IWM (iShares Russell 2000) also lost $1.5 billion (13.1% of assets). But QQQQ (Cubes) was the leading issuer, receiving $831 million (4.7% of assets). Sector flows were fairly subdued. The only sectors with significant flow were Materials, which lost $284 million (9.0% of assets), and Industrials, which issued $77 million (2.7% of assets)."
New York Sun
Feb 28, 2007
- Time To Be A Bit Aggressive By Dan Dorfman

"A liquidity tracker, Charles Biderman, who in Monday's New York Sun predicted an imminent and substantial decline in what he described as an overpriced Chinese market, agrees. I think the American market will calm down shortly, but it could be nasty overseas for a while, he says."
Investor's Business Daily
Feb 28, 2007
- Investors Warm To U.S. Stock Funds By Trang Ho

"Performance chasers should watch out for a severe correction abroad. The rapid advance in foreign stocks, especially the BRIC countries, came to a screeching halt this week. A 9% plunge in the Shanghai index sparked a worldwide sell-off Tuesday. If the global markets keep correcting, that could be very good for U.S. stocks as they (investors) will want to put their money back into U.S. markets, said Charles Biderman, president of TrimTabs, a research firm that tracks fund flows."
Forbes.com
Feb 26, 2007
- Consumer Discretionary ETFs Post Big Outflow

"U.S. equity exchange-traded funds (ETFs) issued $2.9 billion ($734 million daily) during this past week, more than reversing the previous week’s outflow of $2.6 billion ($522 million daily). Breadth was broadly positive at 74:30. The only funds issuing more than $300 million were futures-related funds: iShares MSCI Russell 2000 (amex: IWM) issued $2.3 billion (18.9% of assets), and the Diamonds Trust (amex: DIA) issued $881 million (11.3% of assets). The leading redeemer was the S&P Depositary Receipts (amex: SPY), which lost $1.6 billion (2.6% of assets). "
New York Sun
Feb 26, 2007
- China Syndrome By Dan Dorfman

"Mr. Biderman, president of TrimTabs Investment Research of Santa Rosa, Calif., a liquidity service for institutional investors, primarily hedge funds, says the last time so much money went into one sector was in 1999 and 2000 when about $300 billion poured into Internet stocks just before the dot-com crash."
BusinessWeek.com
Feb 20, 2007
- Stock buybacks growing by the day By Joe Bel Bruno

"Companies were in a buying mood on Tuesday -- for their own shares, announcing billions of dollars in stock buybacks that could make 2007 a record year for share repurchases...That brings the total of buybacks announced by public companies so far this year to $96 billion, according to TrimTabs, a market research firm. At this time a year ago, there were $80 billion in repurchases announced."
Reuters
Feb 15, 2007
- U.S. stock funds take in $3.6 bln in week-TrimTabs

"U.S.-based stock mutual funds took in a net $3.61 billion in the week ended Feb. 14, up from an inflow of $110 million during the prior week, as flows to funds investing domestically turned positive, TrimTabs Investment Research estimated on Thursday."
Investor's Business Daily
Jan 30, 2007
- Investors Bail Out Of U.S. Stock Funds By Trang Ho

"In January, investors stuffed $12 billion into world stock funds, according to estimates from fund flows tracker TrimTabs. They retrieved $2 billion from U.S. stock funds. The lopsided asset flow trend is unsustainable, said TrimTabs President Conrad Gann. We believe it's driven by return chasing, Gann said. A correction in emerging market and international funds will eventually lead to funds returning to the U.S."
USA Today
Jan 16, 2007
- U.S. investors send their cash packing By John Waggoner

"Lured by red-hot gains in foreign markets, investors poured money into international stock mutual funds at a record-shattering pace in 2006. Investors flooded international stock funds with an estimated $150 billion last year, according to TrimTabs.com, which tracks flows of money into and out of mutual funds. An estimated $180 billion flowed into stock funds of all types."
Smartmoney.com
Jan 8, 2007
- Buyouts and Buybacks Remain Poised to Drive Markets By Igor Greenwald

"The figures come from TrimTabs.com, which estimates that cash buyouts and share buybacks absorbed more than 3% of the U.S. market cap last year. No wonder the NYSE Composite index went up 18% last year despite a virtual boycott of domestic stocks by mutual-fund buyers. The real wonder is that the market's benefactors may have no choice but to spoil it yet again."
Biotech Stock Research
Jan 3, 2007
- Crystal Balls and Ground Glass By David Miller

"The answer, according to this article and the good folks from TrimTabs, is the total market cap shrunk by $600 billion in 2006. Even conservatively assuming the same amount of money is in the economy now as at the beginning of last year, fewer goods to buy with equivalent demand (money) means prices will go up.."
Gold Strategies Review
Jan 2, 2007
- Leading Indicators Tell Us What to Expect in 2007 By Clif Droke

"While monetary liquidity is increasing, the supply of shares outstanding in the stock market has been shrinking steadily to form a potentially bullish combination. This has been mostly a consequence of share buybacks, M&A, the private equity trend, and Sarbanes-Oxley. The stock market liquidity analytical firm Trimtabs Investment Research recently observed that for 2006 the amount of oustanding shares has fallen by approximately $500 billion. Trimtabs observed, "U.S. equity fund inflows from 2001 through 2006 have been much lower than they were from 1995 through 2000. The bull run since 2003 has occurred even though indvidual investors have not been big buyers of U.S. equity funds."
MSNBC
Dec 7, 2006
– Sound and Fury of US Payrolls  By John Authers

“Charles Biderman of TrimTabs Research describes BLS figures, and the notion that the US is sliding into recession as "utter nonsense". Tracking income tax withholdings data, he says that the wages of those on payrolls jumped by 6.7 per cent year-on-year during the period from November 10 to December 4. He says the BLS misses the self-employed – baby boomers working at home – and hence misses the new boom."
MarketWatch
Nov 24 , 2006
– Investing: Chasing a Trend By Doug Rogers

“
Conrad Gann, TrimTabs' president and chief operating officer, notes that the current rally has been fueled less by inflow from retail investors and more by contraction in the supply of stocks outstanding. "That's favorable," Gann said. "It's not like the previous peak, where the market was pumped up by a huge flow coming in every month."”

TheStreet.com
Aug 11, 2005
– “RealMoney” Radio Recap: IPO Torrents of Summer By TheStreet.com

“…Biderman correctly turned bullish in April after watching a step-up in fund flows….”

Fund Marketing Alert
Jul 4, 2005
– Research Shop Markets Methods in Book

“TrimTabs Investment Research is looking to garner clients by marketing its methods in a new book. The Santa Rosa, Cal.-based research shop publishes a number of data reports, including weekly mutual fund flows and daily exchange-traded fund liquidity data targeted at mutual fund managers, as well as institutional investors…


The Wall Street Journal

Jun 30, 2005

Today’s Markets by Scott Patterson

Stocks Decline After Fed Decision
“…Charles Biderman, president of TrimTabs, said he sees continuing signs of strong economic growth. Mr. Biderman pointed out that take-home pay of U.S. taxpayers has risen 11% this year from the same period a year ago, a sign of a solid labor force. ‘I don’t see any evidence of the economy slowing,’ he said.”


BusinessWeek Online
May 26, 2005
- "Cash is King" video interview of Charles Biderman
by Karyn McCormack
The best way to gauge the direction of stock prices? Measure liquidity.

Click here and scroll down to "Video Views."
http://www.businessweek.com/investor/index.html


ABC News
May 13, 2005 - Wall and Main: Market of Two Minds
 The stock market seems to be of two minds lately. Money is flowing into equity…

New York Sun
May 9, 2005- This Is Not the Time to Be Squeamish
 
. . . screaming that now is the time to scoop up stocks, and significantly, it's putting its money where its mouth is. Liquidity tracker Charles Biderman, president of TrimTabs Investment Research of Santa Rosa, Calif., has the story. Over the past two weeks, corporate America has...

Smartmoney.com
Apr 28, 2005- Liquidity Theory Points to a Bull Market
 
Marketwatch.com
April 14, 2005 - Investors Step Up Exodus from High-Yield Bond Funds

Investor’s Business Daily
Apr 1, 2005- Energy, International Funds Brighten Dim Landscape

Forbes.com
Feb 19, 2005- Pros See More Life in Bull Market

The Wall Street Journal
Feb 14, 2005 - Stock Investors Fall in Love Again

USNews.com
Jan 19, 2005- Rays of Hope on the Job Front

CBS MarketWatch.com
Dec 17, 2004- Hidden Signs of Strength

TheStreet.com
Dec 3, 2004- Fund Flows Keep Surging

Investor's Business Daily
Nov 12, 2004- Stock Buybacks on Record Pace, A Bullish Indicator for Investors

Reuters
Nov 10, 2004- ETFs take in $3 billion in latest week

The New York Sun
Oct 6, 2004- Will Friday Bring Another Bloody Nose for Bush? by Dan Dorfman

The Dallas Morning News
Sep 27, 2004- Expert Is Hearing Sell Bell

CBS MarketWatch.com
Jun 15, 2004- Is the Money Supply Really Growing That Fast? by Mark Hulbert

Press Democrat
Apr 19, 2004 - Investors Beware -- Hedge Funds Not For Everyone

FinancialSense.com
Aug 09, 2003- MP3 interview with Charles Biderman discussing Liquidity (22 mins)

Barron's
Jun 09, 2003
- Hair Of The Dog – by Alan Abelson


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