Some stocks are one-hit wonders, making a big splash when they first appear, then quickly fizzling into obscurity or oblivion. But for other stocks, that initial big move is only a preview of bigger and better gains to come.
Today, we've listed five stocks that made some of the biggest upward moves over the past month, which we'll pair with the ratings issued by our Motley Fool CAPS community. The higher each stock's rating, the greater CAPS members' faith in that company's ability to keep on beating the market.
|
Stock
|
30-Day Change^
|
CAPS Rating
(out of 5)
|
|
Star Scientific (Nasdaq: CIGX )
|
164.86%
|
*
|
|
InterMune (Nasdaq: ITMN )
|
134.22%
|
*
|
|
Wabash National (NYSE: WNC )
|
109.62%
|
*
|
|
Puda Coal (Nasdaq: PUDA )
|
97.34%
|
**
|
|
Maguire Properties (NYSE: MPG )
|
67.33%
|
*
|
^Feb. 5 to March 9.
As the markets whipsaw to changes in consumer sentiment, there will be weeks like this one where we see gains that are exceptionally ahead of the pace of the movers and shakers of prior weeks. So before we get shaken out again, let's see why the CAPS community thinks some of these companies might continue to outperform the market.
A mighty temblor
While the FDA usually goes along with what its advisory panels recommend, it's not required to do so, and on more than one occasion hasn't. Just ask Dendreon (Nasdaq: DNDN ) shareholders, who saw their shares spike following an advisory panel recommendation for Provenge, only to see the stock crash and burn a month later when the FDA went its own way and issued an approvable letter.
So not all investors are convinced an FDA advisory panel's recommendation to approve InterMune's lung therapy pirfenidone is reason enough to send the shares soaring as high as they have. All-Star CAPS member TMFBreakerJava had this to say, "FDA approval of the IPF drug is far from assured. The run-up is premature and thus the odds favor an underperform call here."
However, the potential for a buyout has been adding fuel to the stock's fire, with shares tripling over the past three months. One analyst speculates that Gilead Sciences (Nasdaq: GILD ) would be the perfect partner, but you can add your own suspicions on the InterMune CAPS page.
Still feeling the aftershocks
This isn't the first time commercial real estate REIT Maguire Properties has found itself shaking the market. Last September, right after it stopped making payments on $1 billion in loans, Maguire saw its stock double.
Now the stock is on the move again, as $125 million worth of debt that it won't be able to repay is maturing. Although Maguire is unloading two properties tied to its founder, who resigned last year, CAPS All-Star TSIF says this is another example of the irrationality of the stock market:
Maguire Properties share price spike today is additonal proof, (as I posted with ABK) that investors can't read quarterly reports. It's also another chance for the irrational market to slam a hammer on my red thumb and make it throb, but I'm willing to take that risk under these conditions. I really didn't expect Maguire to hit that $100 Million market cap again here on caps, at least not in the current decade. Just the phrase "owning and operating high-quality office properties in the Southern California market" should make someone shudder.
Nerves of steel
Although 87% of the CAPS members who have registered an opinion think Puda Coal will outperform the market, its CAPS rating has taken a nosedive just as the stock was taking off. The supplier of metallurgical coking coal used by the steel industry in China is looking to expand operations, and recently priced more than $13 million worth of stock for an offering. The proceeds from the offering will be used to purchase two coal mines. Not so surprising, really, since it's been steadily moving upstream into coal mining.
You can let us know on the Puda Coal CAPS page whether this will end up being just the canary sent in ahead of the miners.
Shake, rattle, and roll
With these stocks shaking the market this past month it pays to start your own research on them at 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.
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