Cold Stocks You're Selling Now

Welcome back to another Foolish review of the coldest stocks as ranked by Motley Fool CAPS. We're looking at the three worst-performing industries over the past 30 days and your favorite short and long candidates in each.

Last week and the week before, subprime lenders were falling faster than Naomi Campbell's reputation, and they're still leading the laggards. Stocks in this sector are, as a group, down 42.4% over the past 30 days.

Who are the other lovable losers? Have a look:

  • Second worst are, once again, the mortgage bankers. Investors have mostly rejected the applications of lenders like Impac Mortgage Holdings (NYSE: IMH  ) which, as a group, are down 17.1% over the past 30 days.
  • Third worst are the homebuilders, whose dilapidated stocks, as a group, fell 15.8% over the past 30 days.

According to you, our Foolish readers, the worst stocks in these industries to own now -- i.e., those rated one or two out of a maximum five stars in CAPS -- are:

Company

CAPS stars (out of five)

No. of CAPS ratings

Bearish CAPS ratings

Bear ratio

Opteum

*

30

21

70.0%

Brookfield Homes (NYSE: BHS  )

*

52

35

67.3%

Beazer Homes (NYSE: BZH  )

*

97

59

60.8%

Countrywide Financial

*

329

195

59.3%

Centex (NYSE: CTX  )

*

165

94

56.9%

WCI Communities (NYSE: WCI  )

*

124

68

54.8%

Source: Motley Fool CAPS

And your favorite long candidates -- i.e., those rated four or five stars in CAPS -- are:

Company

CAPS stars (out of five)

No. of CAPS ratings

Bullish CAPS ratings

Bull ratio

Walter Industries (NYSE: WLT  )

****

786

763

97.1%

Source: Motley Fool CAPS

Do you agree? Disagree? Let us know what you think by signing up for CAPS today. It's 100% free to participate.

Cap off your day with related CAPS Foolishness:

Fool contributor Tim Beyers, who is ranked 1,327 out of more than 24,600 in CAPS, is a sucker for growth stocks and a regular contributor to David Gardner's Motley Fool Rule Breakers service. Tim didn't own shares of any of the companies mentioned in this story at the time of publication. His portfolio holdings can be found at Tim's Fool profile. His thoughts may be found in his blog. Walter Industries is a Motley Fool Hidden Gems pick. The Fool's disclosure policy freezes out Wall Street's worst.


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