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What is the WBSI? Webmaster Stock Index

Discussion in 'Google' started by oliversk, Oct 17, 2014.

  1. oliversk

    oliversk Active Member

    The WBSI (Webmaster Stock Index) is a fictious stock index for the web industry maintained by webmaster.net since October 22th, 2014 starting with an index value of approx 1000 points. It tracks the movement of some of the most important companies in the industry every business-day. The WBSI8-LC tracks the movement of large caps (GOOG,FB,YNDX..), the WBSI8-SC tracks the movement of small cap web companies.

    What should I do with this?

    This index can help to analyze industry trends. Right now the index is a simple experiment for fun, but in the future we intend to provide some tools to conduct more meaningful research.

    Is this a weighted index?

    No, this is a price-weighted index. Stocks with higher prices have a higher weight. However, we have split the index into two sub-indices: WBSI8-SC and WBSI8-LC to make sure this index is well balanced. Over time we will consider adding more companies, but at the moment we are starting with 8. Right now, only the large cap index is live.

    What is your divisor?

    To make the index more meaningful, we are using a divisor of 4 for the large cap index to come close to the index value of 1000. You can observe this index over time and analyze the industry.

    When are you updating the index?

    We are updating the index every day after the closing bell 4PM EST.

    What companies are currently in the LC and SC indices?

    LC:
    • Google
    • Yahoo
    • Twitter
    • Facebook
    • Yandex
    • AOL* (3)
    • YY* (4.27)
    • Baidu

    * Possible replacement contender: Red Hat Inc, Verisign, ...


    SC:
    • Digital River
    • Tucows
    • Remark Media Inc
    • Renren Inc.
    • Blucora Inc
    • Demand Media
    • Rediff.com
    • Freelancer Ltd.


    Questions, feedback can be posted below. Volunteers are welcome to work with me on this but should have some basic understanding of PHP and Javascript

    The index is tracking since today, so expect a more useful graph by the end of next week.

    This should be an open project, so everyone can contribute ideas and we will try our best to improve the index. E.g. if you are not happy with the selections for our index, you are welcome to submit more names or if you are concerned about the weight-factor suggest a different setup. This is a simple experiment at this stage, nothing more.




    COMPANY / STOCK REVIEWS


    - Blucora Recap -

    If any one of you are considering investing into any web companies, Blucora may be a longterm play.

    The pros: Player in different markets, online retail, tax software and search engines (Dogpile). Oh and most recently media (HowStuffWorks). The company has been around before the DOT COM bubble.

    The cons: The problem I have with that company is that they are not focused. They simply buy other companies because they can and are now in four different markets (software,media,search engines,retail).

    How about becoming big in one industry instead? They failed to master search engines and never exceeded a meta-search engine.

    More pros They have very stable revenue and they can afford to enter other markets. Tax software is lucrative and the online retailer monoprice looks pretty cool and seems to gain traction.

    Conclusion:
    All in all, I think they may be undervalued but it's a highly speculative buy. They might as well go bust as soon as Google changes it guidelines or contracts. I know my business is greatly affected by Google and so is theirs. They depend on it (over 60% of Blucora's revenues come from search engines). I am in the same boat and must say that dependence is not always a negative thing as long as it works out it means stable revenues. My outlook is bullish due to the excellent execution so far (since 98') and this could double in 12 months if any of the products gain more traction, which is very likely.

    Underweight this position

     
    Last edited: Oct 30, 2014
  2. oliversk

    oliversk Active Member

    Added BTC price - although there is no correlation between internet companies and the value of BTC, I think it may be of value to have both in one graph. If I find a reliable source I will create a separate graph for Bitcoin venture capital combined vs Internet companies vs Internet company seed rounds by Google etc. which should be pretty interesting too - over time

    Expect further improvements next week when the index has more entry points - right now 105 is the starting point

     
    Last edited: Oct 17, 2014
  3. oliversk

    oliversk Active Member

    Right now the BTC value is simply the value two minutes after the DOW closing bell, but if I can find a good API it will display the average price of the day.

     
  4. oliversk

    oliversk Active Member

    Large cap and small cap indices are now both tracking data.

    Apparently the divisor wasn't working out for the large cap to see any actual progress. The divisor has been adjusted and both indices will start close to the 1000 mark.

    We are also displaying 4 decimal points for further accuracy. A lot of indices only display 2, so we may change that but use it for internal calculations.

    Also, replaced Akamai Technologies (large cap) with Blucora Inc. (small cap)

    Should be interesting to see how this develops over time.

    Still open to any suggestions. Going to add a full graph for 7day view, monthly view, yearly view when we have enough data for monthly views

     
  5. oliversk

    oliversk Active Member

    Digital River received a takeover bid and may be removed from the index.

    Damn, why did I not invest into the company? xD

     
  6. oliversk

    oliversk Active Member

    - Edit I am adding company reviews and stock pros/cons to the first post at the bottom -

     
  7. oliversk

    oliversk Active Member

    A little update on the current progress. I hope we can have a full graph up next year.

    Right now, it's collecting data.

    I am a little surprised how balanced the large cap index is. In 30 days, there was a 0.5% change.

    When you look at GOOG (biggest position), it changed from
    • 539.82 on October 27th
    • to
    • 541.08 on November 26th
    So, the changes are really barely noticeable.

    I am even more surprised how balanced the small cap index is - there should be more volatility. I will make sure it is tracking all stocks correctly, but I don't see a reason why it shouldn't.

     
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