5 Stocks on Fire!

Most investors don't keep tabs on their companies' fundamental value. That's a mistake. If you take the time to read past the headlines and crack a filing now and then, you're in a much better position to spot potential trouble early. Better yet, you'll improve your odds of finding the underappreciated home run stocks that provide the market's best returns.

We can help you keep tabs on your companies with MyWatchlist.com, our free, personalized stock-tracking service. Here are five stocks from my watchlist that have been hot lately.

1. SandRidge Energy (NYSE: SD  )
SandRidge caught my eye after it had risen by more than 65% in the past three months. Since late 2009, SandRidge has made several acquisitions, notably Arena Resources, designed to shift the company's primary focus from natural gas to oil production. SandRidge now has sizable holdings in Texas and Oklahoma in which to drill for oil. It expects that its production will swing from mainly natural gas to mainly oil in 2011. SandRidge's prescient bet on oil means the company will be a big beneficiary from this year's rising oil prices. 

2. K-Sea Transportation (NYSE: KSP  )
K-Sea Transportation caught my eye after it had risen 69% over the past three months. K-Sea is a shipping transportation and logistics company for petroleum products along the U.S. East Coast. Its shares took a huge jump last week, when it agreed to be acquired by Kirby for roughly $8.15 a share. In general, oil-shipping companies' profits are expected to increase after geopolitical events have caused many disruptions in the oil-and-gas space. Read more.

3. Cirrus Logic (Nasdaq: CRUS  )
Cirrus Logic has been on a tear recently. Over the past three months, the stock has risen 31%, and longer-term it's done even better. Fool analyst Eric Bleeker bought the stock for his real-money "Rising Stars" portfolio in November, and since then it's returned an astounding 65% in just five months. Check out his buy recommendation.

4. Oilsands Quest (NYSE: BQI  )
Oilsands Quest is continuing on its quest to find oil. Its stock has risen 22% over the past three months after falling by more than 60% in the preceding year. Unlike other speculative oil plays such as ATP Oil & Gas (Nasdaq: ATPG  ) , which has producing wells and cash flow, Oilsands Quest is in the development stage, a euphemism meaning that it hasn't produced oil yet. It has spent quite some time trying to profitably drill in the Canadian oilsands, but after numerous setbacks, the company tried to sell off some of its assets to continue operating, a strategy that worked for Delta Petroleum (Nasdaq: DPTR  ) . After that failed, the company went back to the equity markets to raise more money. At this point, Oilsands Quest is purely speculative. It's sitting on some real assets with its oilsands holdings but so far hasn't been able to monetize them. The company should be interesting to follow going forward in case its fortunes change.

5. Rediff.com (Nasdaq: REDF  )
Rediff.com caught my eye after rallying 43% over the past three months. The company operates a Web portal in India much akin to U.S. portals Yahoo.com or MSN.com. Although the company isn't profitable, the opportunity before Rediff is huge. India has more than 700 million mobile-phone users but only 10.3 million broadband connections. As infrastructure expands and broadband use rises among the population, Rediff should be a winner. The company also has net current assets of $40 million, 20% of its market cap.

Foolish bottom line
If you're looking to keep up with these companies, add them to MyWatchlist.com, our free, personalized stock-tracking service. If you want some full-on stock picks, we recently wrote a report highlighting five stocks that The Motley Fool bought for its own account -- including the stock that senior writer Morgan Housel calls "probably the world's greatest investment." If you'd like to see the entire buy thesis on that stock, as well as the other the other four, I invite you to download it for free. Just click here.

Find Dan Dzombak on his Twitter account, @DanDzombak. He owns LEAPS on ATP Oil & Gas.

The Fool owns shares of Cirrus Logic. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insightsmakes us better investors. The Motley Fool has a disclosure policy.


Read/Post Comments (4) | Recommend This Article (8)

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 March 30, 2011, at 9:23 AM, goldozone wrote:

    Delta Pete is whats hot DPTR was $28.00 in 2008, Nat Gas is going threw the roof and they have 2.9 trillion cubic feet plus 4.5 million barrels of oil. The 2nd hot one is BQI which was 8.00 in 2008. When oil was cheap!

  • Report this Comment On March 30, 2011, at 9:24 AM, goldozone wrote:

    both under $1.00 mark this post next year by this time, they will both be over $3.00 each.

  • Report this Comment On March 31, 2011, at 9:24 AM, BioBat wrote:

    You're right. BQI hasn't monetized their oilsands yet because the company spent years prospecting all over the place. It seems they've finally (or rather have been forced to due to cash constraints) focused on the most likely to be profitable areas, which appear to contain oil worth many orders of magnitude more than the market cap of the company. If and when they get any oil flowing, this stock will shoot up like a rocket....so long as they don't go out of business first.

  • Report this Comment On April 04, 2011, at 11:53 AM, RRobertsmith wrote:

    REDF hiking up to 8.13 resistance here waiting for the next round of the bear picnic.

    april 4th 2011

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