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.
1 Month % Change
|Synthesis Energy Systems (Nasdaq: SYMX )||
|Sify Technologies (Nasdaq: SIFY )||
|Insmed (Nasdaq: INSM )||
Source: FinViz.com; 1 Month % change from Feb. 24 to March 23.
While you were out, the market has plunged below the 12,000 level and soared back up, 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
Coal gasification seeks to change a "dirty" source of energy into a clean one. It's not a new technology as it has long attracted the attention of industry giants like utility like Duke Energy, which is building a plant in Indiana, and General Electric (NYSE: GE ) , which earlier this year announced a joint venture in China for the process.
Yet Synthesis Energy Systems believes the technology license it holds from the Gas Technological Institute gives them an edge as it allows the conversion of low-grade coal to natural gas without the harmful emissions typically associated with coal-fired plants. Apparently some Chinese investors think so too as they took a big stake in the tiny company, injecting almost $84 million into SES in return for a 43% position that could become as large as 60% if they're able to establish a $3 billion coal gasification project in China.
Highly rated CAPS All-Star EnigmaDude had his eye on Synthesis Energy prior to the China Energy investment, believing the disaster in Japan made the potential for investment in its technology greater.
Apparently the Japan disaster is creating an increased emphasis on coal companies in general, and I believe the alternative energy aspect of coal gasification has generated exceptional interest in this company, especially with their presence in China and plans to expand into India.
The company has been around for a few years but the stock has languished for the past several years, until this month. I have seen price targets ranging anywhere from $3 by the end of this year to more than $20. I'm not sure if the recent interest is sustainable, but it certainly bears watching.
Head over to the Synthesis Energy Systems CAPS page and let us know whether there's a big future in this tiny company.
Secure in the knowledge
Indian IT services specialist Sify Technologies was identified as a stock primed for a big run up at the start of the year despite a struggling business. But with the subcontinent investing heavily in plans to upgrade its infrastructure by increasing the number of broadband connections by 700% next year, Sify and fellow Indian portal Rediff.com (Nasdaq: REDF ) are seen as likely beneficiaries of the effort. Sify's stock is up more than 150% year to date.
New partnerships have helped overcome the perception it's faltering. Last December Nokia (NYSE: NOK ) teamed up to off small- and medium-sized businesses hosted mobile order management services, and last month Saudi Telecom, the Middle East's biggest telecom provider, partnered with it to offer ICT services.
Of the more than 325 CAPS members rating Sify, 92% of them think it will outperform the broad market averages. While a slightly lower percentage of All-Star members have the same feeling, the stock's two-star rating suggests they think there are better places for your money at this time.
Add Sify Technologies to the Fool's free portfolio tracker to see if the plans for broadband investment come through and if it benefits Sify's bottom line.
Should I stay or go?
With Merck's (NYSE: MRK ) announced intention to purchase Inspire Pharmaceuticals, there's speculation growing that Insmed may be a target itself, if not for Merck then for someone else. But certainly the pharmaceutical giant would be a logical contender considering its need to continue bolstering its pipeline and the fact the two have a history together. Merck bought Insmed's biosimilars business a few years ago.
Now that Insmed got approval to begin pivotal phase 3 trials for Arikace, a lung infection therapy, it would seem a propitious time for Merck to look more closely here.
Insmed is flying under Wall Street's radar right now, and only a few dozen CAPS members have been following it as well. Of those who have indicated a preference, 93% see it being successful. You acquire more insight on the Insmed CAPS page and by adding it to the Fool's free portfolio tracker.
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.