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.
1 Month % Change
CAPS Rating (out of 5)
|PharmaAthene (NYSE: PIP )||
|Hyperdynamics (NYSE: HDY )||
|Taseko Mines (AMEX: TGB )||
One-month % change from Sept. 15 to Oct. 15.
The markets whipsaw to changes in economic news, so the S&P 500 has been volatile. 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
Investors have been waiting for drugmaker SIGA Technologies (Nasdaq: SIGA ) to win a contract for antiviral smallpox drugs from the Department of Health and Human Services. Well, SIGA Technologies was awarded the contract worth about $500 million in revenue for 1.7 million courses of its treatment. Its shares soared 50% on the news.
Good for it, but good for PharmaAthene, too, because it has been locked in a legal battle with SIGA Technologies over the marketing rights for the drug. After a failed merger agreement between the two, analysts expect a ruling to go in PharmaAthene's favor, hence the run-up its shares, too. CAPS All-Star MstrGold is bullish, but wary.
Lawsuit against SIGA for smallpox development and marketing rights. This is high risk/reward pick as I don't know much else than this, and stock value depends on the judge [decision].
Let us know what you think on the PharmaAthene CAPS page.
A sunny disposition
Independent oil and gas exploration company Hyperdynamics has been piling on one positive development after another as it tries to appropriately exploit its stake off the coast of Guinea in West Africa. A respected resource evaluation company confirmed its estimates of recoverable unrisked prospective oil resources, and Hyperdynamics followed that news by saying it had reached agreement with Dana Petroleum on a budget for drilling up to three exploration wells. It was an important milestone because it allows Hyperdynamics to satisfy the minimum work obligations it has with the country. The company has a 77% interest in the concession, while Dana Petroleum has a 23% interest.
Well at least Hyperdynamics is consistent-they haven't produced a dime of revenue and lose between 8 and 9 million dollars a year. They're dealing with a whopping 25 cents in net cash and they'll burn through that in a heartbeat. They are hoping as always that they hit oil but until they start producing just assume its the same spike you've seen 20 times over the last decade. These spikes always lead to sell-offs. Just play the numbers here in more ways than one and bet against a company trading at 14 times book and an infinite amount to sales.
Africa's west coast is a potential gold mine in oil resources, and while the major oil players have interests there, others are looking to exploit it, too. Dry bulk shipper DryShips (Nasdaq: DRYS ) , which most people don't associate with drilling, just signed a contract for its drilling services subsidiary Ocean Rig for exploration off of Ghana.
Add Hyperdynamics to your My Watchlist page and get all the Foolish news and analysis about this stock in one place.
A speedy opportunity
Despite an apparent "fat finger" trade that sent Taseko Mines' stock down 30% for five minutes one day last week, shares of the copper miner are up 150% over the past year. Taseko realized higher prices for copper and molybdenum, like both Freeport McMoRan (NYSE: FCX ) and Southern Copper (NYSE: SCCO ) , enabling it to report higher second-quarter earnings and revenue.
With the Prosperity mine closer to receiving federal approval, among other factors, 9profitseeker9 looks for superior growth.
Prosperity mine approval. Improved performance at Gibraltar mine. Strong copper and gold pricing. Underowned by institutions. Large outperformance expected both short-term and long-term, although after a short-term spike expect a consolidation pull-back to levels higher than current pricing.
To determine whether Taseko belongs in your own portfolio, and to know how many similar businesses already occupy your stable of investments, be sure to add it into the Fool's free portfolio tracker, My Watchlist.
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.