5 Stocks Losing Top Investor Support

Recs

7

"Bull markets are born on pessimism, grow on skepticism, mature on optimism, and die on euphoria. The time of maximum pessimism is the best time to buy, and the time of maximum optimism is the best time to sell." -- Sir John Templeton

Just as it makes sense to research the stocks attracting top investors, it's equally important to figure out why smart money is leaving other investments. Using Motley Fool CAPS, the Fool's 125,000-member-strong investing community, we can see which stocks are losing support from CAPS All-Star players.

A sudden decrease in interest from top-rated investors could signal that the stock is losing steam, which might make it an awful stock to avoid for now. At the very least, such drops should signal that further research is in order.

Here are five stocks receiving less support from CAPS All-Stars over the past month:

Company

Industry

% Change in All-Star Bulls From 12/29 to 1/28

CAPS Rating (out of 5)

CAPS Research

FINANCIAL BEAR 3X (NYSE: FAZ)

Funds

(29%)

1 Stars FAZ

Grupo Aeroportuario del Sureste (ADR) (NYSE: ASR)

Transportation Infrastructure

(29%)

4 Stars ASR

Satyam Computer (ADR) (NYSE: SAY)

IT Services

(28%)

3 Stars SAY

Simpson Manufacturing Co, Inc. (NYSE: SSD)

Building Products

(24%)

3 Stars SSD

Granite Construction, Inc. (NYSE: GVA)

Construction and Engineering

(23%)

4 Stars GVA

Source: Motley Fool CAPS, as of Jan. 28, 2009.

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Disclosure is important to us here at The Motley Fool. No individual person selected the stocks in this article, so there is no author to disclose an interest in them. Since this article was automatically generated, it is possible that Motley Fool personnel (and even The Motley Fool itself, through our Million Dollar Portfolio, Motley Fool PRO, and Ready Made Millionaire services), have positions in these stocks. We thought you'd like to know that. You can learn more about The Motley Fool’s disclosure policy here.

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On January 29, 2009, at 5:21 PM, cubanstockpicker wrote:

    FAZ doesnt fit into the seven day caps buy and hold rules. You have to catch it only when sitting in a lull for a few days with smaller strecthec in volatility. This should be going from 4-5 star to 2-1 star almost every two weeks.

  • Report this Comment On February 02, 2009, at 1:38 PM, BenGriffin71 wrote:

    'Eschew obfuscation, espouse elucidation.' is another quote you might have considered for this article, as the writing in this piece is more than superficially ambiguous.

    This piece begins with a quote explaining the logic behind a contrarian view of market sentiment.

    The writing then seemingly does an about-face and suggests caution concerning stocks falling from public approval, in opposition to the initial quote, which would suggest falling sentiment is a sign that a time to buy would be approaching (a pessimistic extreme can only occurs after a decrease in sentiment).

    Some incongruity is common in most writing, but this next little tidbit is sheer genius... genius for being a problem, that is.

    Just when you are trying to figure out which way the author is approaching this subject (and wondering if the author is any more certain), the phrase:

    'an awful stock to avoid' is thrown in, to complete the confusion.

    'An awful stock to avoid'. What could be more clear? Rhetorical questions, who needs them?

    You can bet the author meant, ' a stock for which a choice to avoid would be awful'. and, someone else can bet the author meant, 'a stock that is awful, and should be avoided'. And we will have wager, but not more clarity.

    Personally, I'll bet the author will be happy to provide disambiguation.

    CUBANSTOCKPICKER.. You can get around the 7 day rule... fairly effectively by utilizing the ETF's inverse. For example, if you enter a thumbs down on FAS, and want to exit three days later, just enter a thumbs down on FAZ. Then exit both positions at the same time, 7 days after you initiated the FAZ thumbs down.

    The ETF pairs don't track as exact inverses, so sometimes you will come out a little behind and sometimes a little ahead. For only a few days, the disparity shouldn't be too great.

  • Report this Comment On February 03, 2009, at 10:22 AM, Deepfryer wrote:

    That's it? Where's the rest of the article? There was no discussion of the stocks mentioned in the table.

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Related Tickers

11/24/2009 4:05 PM
ASR $48.25 Up +1.02 +2.16%
Grupo Aeroportuari… CAPS Rating: *****
GVA $31.26 Down -0.26 -0.82%
Granite Constructi… CAPS Rating: ****
SAY $5.05 Down -0.10 -1.94%
Mahindra Satyam CAPS Rating: ****
SSD $26.18 Down -0.49 -1.84%
Simpson Manufactur… CAPS Rating: ****

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