3 Stocks Shaking the Market

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 for even bigger and better gains to come.

Today, we've listed three 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

1 Month  % Change*

CAPS Rating

Arena Pharmaceuticals (Nasdaq: ARNA  )

57.4%

***

VisionChina Media (Nasdaq: VISN  )

23.1%

****

JA Solar (Nasdaq: JASO  )

19.6%

****

*From June 16 to July 16.

As the markets whipsaw to changes in consumer sentiment, the S&P 500 has stayed essentially flat. 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
Suddenly, all the fat profits to come in obesity drugs have as much substance as cotton candy on the tongue. VIVUS (Nasdaq: VVUS  ) got sumo-wrestled to the mat by an FDA advisory committee, which recommended that the agency not approve VIVUS's fat-fighting therapy Qnexa. It shouldn't have surprised anyone that Arena Pharmaceuticals and Orexigen Pharmaceuticals (Nasdaq: OREX  ) got body-slammed, too.

Safety was the panel's top concern; its members undoubtedly still remember the whole fen-phen disaster years ago. Orexigen's Contrave doesn't seem to fall into the same ring as Qnexa in that regard, but its weight-loss benefits weren't as great, either. The Fool's Jordan DiPietro isn't hopeful here, and while he thinks Arena's lorcaserin also falls a bit short in the reward-to-risk ratio, it does offer more safety data.

Arena investors likely see the field thinned for their preferred heavyweight, given the way the pharma's shares bounced back up. Japanese pharmaceutical Eisai thought enough of lorcaserin to put some money on the table for its development, which may suggest a promising future ahead.

Highly rated CAPS All-Star member JPG101 predicted that VIVUS would be shot down over safety concerns, and feels Arena will prosper for just that reason:

Vivus will probably be turned down by FDA panel on safety concerns. This should help Arena that has a much safer (although less powerful) drug. Lorcaserin is a truely innovative drug that has protection from generics. 

Arena has a real partner that has the cash and sales force to launch if approved.

Lorcaserin works relatively well especially in certain sub groups that could benefit significantly from even modest weight loss. More data on this subset of patients will be upcoming soon.

A speedy opportunity
ChinaVision Media operates an ad network of digital TV displays on China's buses and subway system. The company got a clear picture of its future when its exclusive contract to operate Beijing's subway mobile-digital television and ad network was renewed for five years. That gives the company room to compete against ChinaMediaExpress (Nasdaq: CCME  ) , the country's largest television ad network on intercity buses.

Two months ago, CAPS member binaili delineated five reasons why ChinaVision Media was a good investment:

Will outperform S&P500 in long term because,
1. out-of-home advertising/mobile digital television business is INEVITABLE
2. doninate outdoor advertising/mobile digital television market in China
3. Strong management team
4. will get more market via ShangHai World Expo and Asia 2010 Game in GuangZhou
5.current price $3.86 is a great entry-point

No laughing matter
My mom always told me, "If you don't have something nice to say about someone, don't say anything at all." That kind of attitude now seems to be propelling JA Solar higher. An analyst initiated coverage on the solar shop with a hold rating -- but, um, shouldn't you start off with a buy before you can hold?

With the CAPS Solar Power sector down 11% over the past year, but JA Solar's stock soaring 28%, a hold recommendation is equivalent to not saying something bad about the company. Compared to MEMC Electronic Materials (NYSE: WFR  ) , down 44% but also getting a hold rating, you might even think JA's rating was a ringing endorsement.

You won't find much argument from the CAPS community, where 95% of those rating JA believe the sun will shine on this solar specialist. Shed your own light on its prospects on the JA Solar CAPS page.

Shake, rattle, and roll
It pays to start your own research on these market-shaking stocks 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.

Try any of our Foolish newsletter services 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 here. You can shake, rattle, and roll The Motley Fool's disclosure policy, but it still won't break.


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