A 1-in-100 Investor

Recs

5

The first 100 days in office set the tone for any new president. Motley Fool CAPS keeps an eye as well on how investors do in their first 100 days. Some of our best -- we call them All-Stars -- have achieved scores of 100 on stock selections in their first 100 days on CAPS. Because data shows that the best stocks to buy and sell have gotten top ratings, might we also assume that when the best players rate the best stocks, there is a correlation?

One of our highest-rated CAPS members is FlaxSeedOil, who sports a near-perfect 99.93 member rating. A member since October 2006, FlaxSeedOil has 191 active picks on CAPS out of more than 1,050 stock picks made. While achieving 76% accuracy, FlaxSeedOil has also attracted 21 "groupies," CAPS players who've listed this leading investor as one of their favorites.

Here are a few of this top member's most recent stock selections and how they were rated.

Stock

CAPS Rating  (5 max)

Call

Price*

Current Score

A-Power Energy Generation (Nasdaq: APWR)

***

Outperform

$3.80

(1.39)

Canadian Solar (Nasdaq: CSIQ)

**

Outperform

$5.81

(19.15)

CNOOC

****

Outperform

$82.00

8.34

Coventry Health Care

*****

Outperform

$13.96

(6.30)

Deere (NYSE: DE)

****

Outperform

$34.81

(3.36)

Mechel (NYSE: MTL)

****

Outperform

$6.05

(18.16)

ReneSola (NYSE: SOL)

*****

Outperform

$6.88

(44.75)

Rio Tinto

****

Outperform

$98.96

(21.55)

Sun Microsystems   (Nasdaq: JAVA)

**

Outperform

$4.09

(17.04)

Vale (NYSE: RIO)

****

Outperform

$11.10

(5.64)

Source: Motley Fool CAPS; *price when call was made. Current score is how many points by which a member is beating (lagging) the S&P 500 index from the time of the call.

Let's take a look at what other CAPS members are saying about some of these stocks and whether they agree with this top player's assessment.

ReneSola
Despite the sunny disposition of many investors toward the solar industry, it's becoming harder to ignore some red flags about the industry. ReneSola is one company that's having difficulty getting customers to honor their agreements, and CAPS member TeaBeri thinks it's not just marked for underperformance; it's an outright sell:

ReneSola is in an uncertain place in the Chinese Solar market right now. Too much inventory and too little cash means weakness in hard times. SOL might take off in the future, but right now we have no indication of that. I think even minimal attention to this company will give you ample warning before that happens. Rather than lowering risk by buying several Chinese Solar plays, wait and watch-and snap up the companies that prove they have a future. You might miss a 30% gain, but you'll avoid a 90% loss.

Sun Microsystems
A deal with Microsoft might signal a change for the Wizard of Redmond, but it also indicates Sun Microsystems is willing to provide fodder in the war for search. That might not change the search industry hierarchy, but CAPS All-Star member ebitebit sees the sum of Sun's parts as a rich vein that a rival might be willing to search for:

Valuation on individual bits of Sun compelling.

Server technology: Server market will grow boosted by home servers.

Storage: Another market that will keep growing.

SQL and java software platforms: market for providing services to these technologies will grow.

Any of the above would be a good bolt on acquisition for several competitors. Putting these technologies together can be a potential winning value proposition but need new [management] vision and drive.

A 1-in-100 opportunity
Some of the best and smartest members in the CAPS investor-intelligence community have made their mark, so it pays to start your own research on these stocks on Motley Fool CAPS. Read a company's financial reports, scrutinize key data and charts, and examine the comments your fellow investors have made -- all from a stock's CAPS page.

As hockey great Wayne Gretzky once noted, "You miss 100% of the shots you never take." At Motley Fool CAPS, every investor's opinion counts, and because it's free to sign up, why not use this opportunity to take your best shot?

Closed for 15 months – opening 10 days only! Get notified ahead of time as our expert portfolio manager invests $1 MILLION in the best opportunities from across The Motley Fool’s premium investment services. This is the first open since August 2008, by invitation only. Enter email below.

CNOOC is a Motley Fool Global Gains selection, Microsoft is an Inside Value pick, and Coventry Health Care is a Stock Advisor recommendation. Try any of our Foolish newsletters today, free for 30 days.

Fool contributor Rich Duprey does not have a financial position in any of the stocks mentioned in this article. You can see his holdings. The Motley Fool has a disclosure policy.

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Related Tickers

11/11/2009 12:19 PM
CSIQ $16.87 Down -0.17 -1.00%
Canadian Solar, In… CAPS Rating: ***
APWR $11.31 Down -0.04 -0.35%
A-Power Energy Gen… CAPS Rating: *****
MTL $20.43 Down -0.78 -3.68%
Mechel OAO (ADR) CAPS Rating: ****
RIO $17.42 Down +0.00 +0.00%
Vale CAPS Rating: *****
JAVA $8.49 Up +0.34 +4.11%
Sun Microsystems,… CAPS Rating: **
SOL $3.91 Down -0.18 -4.40%
RENESOLA LTD CAPS Rating: *****
DE $48.28 Down -0.07 -0.14%
Deere & Company CAPS Rating: ****

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