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.

Today, we've listed three stocks that made some of the biggest moves up 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 (out of 5)

Savient Pharmaceuticals (Nasdaq: SVNT  )

35.4%

**

Fuqi International (Nasdaq: FUQI  )

21.8%

****

Neutral Tandem (Nasdaq: TNDM  )

17.2%

*****

One-month % change from Aug. 2 to Sept. 2.

As the markets whipsaw to changes in economic performance, the S&P 500 has been volatile. So before we get shaken out again, let's see why some members of the CAPS community think these companies might continue to outperform the market.

A mighty temblor
The pharmaceutical and biotech industries had taken a lot of hits, as the Food and Drug Administration shot down an anti-obesity drug from VIVUS (Nasdaq: VVUS  ) , the hepatitis C treatment from Idenix Pharmaceuticals, and the breast cancer therapy from Roche and ImmunoGen (Nasdaq: IMGN  ) . But this week, Savient Pharmaceuticals provided some cheery news, saying that its gout treatment Krystexxa had been approved. A little more than a year ago, Savient crushed investors when the FDA rejected the drug despite an advisory panel recommending its approval, 14-1.

Gout, called the "disease of kings," has attacked historic figures such as King Henry VIII and the emperors Charles IV and Charles V. Savient believes Krystexxa bypasses the limitations on conventional therapies for gout, which manifests itself as a painful inflammation, often of the big toe.

But Savient isn't just interested in selling Krystexxa; it also wants to sell itself, possibly to a company that might want to add the drug to its own stable of anti-inflammatories. The approval now provides a potential acquirer with a more definitive opportunity, though it probably also increased the price one might have to pay.

With almost 90% of the CAPS members who have rated Savient picking it to outperform the market, it seems they believe the premium will increase.

A slick opportunity
Hard to imagine that opening a showroom would lead to a 22% jump in the stock price, but Fuqi International has been under a cloud of suspicion about its operations since earlier this year, and last week the Securities and Exchange Commission opened a formal investigation into the Chinese jewelry retailer. Perhaps the showroom hinted to the market that allegations about fraudulent accounting practices hiding a shell company were less than what meets the eye.

The move by Fuqi is all the more remarkable, particularly on a day when shares of Universal Travel Group (NYSE: UTA  ) fell after allegations that operations were far less than they were purported to be, highlighting again how risky Chinese stocks can be.

CAPS member dnblack doesn't think anyone who has doubts about Fuqi ought to invest in it, but notes the share price is trading well below its last-known book value.

If you think they are lying about their book value as well as their earnings (as you certainly might be) then just avoid this company all together. However if you have a bit of faith, $10/share of book value leaves a lot of room for error.

"Latest known book value" is a key phrase, though, because Fuqi hasn't filed financial statements since last year. Caveat emptor.

A speedy opportunity
Is Level 3 Communications' (Nasdaq: LVLT  ) loss Neutral Tandem's gain? Shares of the telecom services provider sank the other day as competition in the sector led to Level 3 offering $175 million of convertible senior notes. But yesterday, along with Neutral Tandem, the shares recovered nicely, rising almost 10%.

More than likely it has to do with the big vote of confidence insiders gave Neutral Tandem, buying up more than 100,000 shares at market prices. As CAPS member gpiazzolla points out, it's noteworthy that the chief financial officer was one of those snatching up a good chunk of those shares.

Go to the Neutral Tandem CAPS page to let us know if you think the insiders' confidence is misplaced.

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.

The Fool owns shares of Neutral Tandem. Try any of our Foolish newsletter services free for 30 days. True to its name, The Motley Fool is made up of a motley assortment of writers and analysts, each with a unique perspective; sometimes we agree, sometimes we disagree, but we all believe in the power of learning from each other through our Foolish community. The Fool has a disclosure policy.

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


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