Hot Stocks You're Buying Now

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

There goes the clicker. After two weeks at the top, cable TV systems suppliers no longer rule the Foolish realm. Their 13.0% average return over the past 30 days trails the 13.2% gain industrial real estate trusts such as Public Storage (NYSE: PSA  ) and ProLogis (NYSE: PLD  ) have produced over the same period.

And in the third spot? Jewelry retailers such as Blue Nile (Nasdaq: NILE  ) and Tiffany & Co. (NYSE: TIF  ) are glittering with an 11.8% average return since late February.

According to you, our Foolish readers, the best stocks in these industries to own now -- i.e., those with four or five of the maximum five stars in CAPS -- are:

Company

CAPS Stars

No. of CAPS Ratings

Percent Bulls

30-Day Price Change

Neogen

*****

199

97.9%

(2.0%)

Net Servicos de Comunicacao (NASDAQ:NETC)

*****

295

98.6%

(10.8%)

NDS Group

*****

108

97.2%

(3.3%)

Sources: Motley Fool CAPS, Yahoo! Finance. Data as of March 20.

And your favorite short candidates -- i.e., those rated with one or two stars in CAPS -- are:

Company

CAPS Stars

No. of CAPS Ratings

Percent Bears

30-Day Price Change

Mediacom

*

75

78.7%

(9.1%)

BIDZ.com

(NASDAQ:BIDZ)

*

194

55.1%

7.2%

Sources: Motley Fool CAPS, Yahoo! Finance. Data as of March 20.

My favorite stock among today's contenders is Net Servicos de Comunicacao, which might best be described as Time Warner (NYSE: TWX  ) for Brazil. Translated from the company's website:

The NET Services is the largest cable company [in] Latin America. Present in 79 cities, including Sao Paulo, Rio de Janeiro, Belo Horizonte, Porto Alegre, Curitiba, Florianopolis, Brasilia and Goiania, [the company] offers services of pay TV, internet broadband, and voice through a single cable.

Talk about a massive opportunity. According to the CIA's online "Factbook" for Brazil, more than 190 million people live in that country and nearly 100 million of them are active in the labor pool. Gross domestic product is growing by 4.5% annually as a result.

It's for these reasons and more that Foolish colleague Tim Hanson, a recent visitor to this South American power, says Brazilian stocks have serious upside potential.

CAPS All-Star spiritof78 agrees. Here's what he wrote more than a year ago, when shares of Net Servicos de Comunicacao were trading for more than $12 each:

Obscene undervaluation, some to be expected given the emerging market (Brazil) that it's placed in. Has anyone noticed all the Brazilian based news stories recently, talks of local supermodels, celebrities, etc. ... hitting the American news. Why does this matter? Adoption of a local celebrity culture is growing on in this country. This fuels television watching, which fuels the cable industry.

If it was "obscenely undervalued" then, what must it be now? Really obscenely undervalued? With a 0.27 PEG ratio based on 2008 estimated earnings, it sure seems like it.

But I'm more interested in what you think. Would you buy Net Servicos de Comunicacao at today's prices? 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:


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