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 
(out of 5)

Synthesis Energy Systems (Nasdaq: SYMX  )

102.3%

*

Sify Technologies (Nasdaq: SIFY  )

84.4%

**

Insmed (Nasdaq: INSM  )

77.9%

***

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.

Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.

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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  • Report this Comment On April 19, 2011, at 1:41 PM, spacemark wrote:

    Guys, Let's take a deep breath and think it through.

    The hype about Rediff, is wholly based on India Govt being aggressive in investing in internet infrastructure.

    And I know this news means good news for internet based businesses. But being an Indian and seen how things work here, I can say that promise of increasing 700% internet infrastructure by 2012, is a complete mirage.

    When Indian government promises such things, every Indian person adds +3 years to it just to get 50-60% of what is promised. I will give you example of my own town- Kolhapur, this town is crazy progressing in many sectors, and there was a company who planned to put fiber optics, they did all the paperwork and everything and paid the fees (big mistake), just to wait for more than a year to get the proper permits and now that Government is raising fees and bringing all sorts of red tape issues (just to get even more money from that company), they have decided to take their money back. But hey, even for that they had to file paperwork for refunds and now thats done, its been couple of months they are waiting to get their money back. This is the story of how aggressive Indian government about internet. So, news of growing internet infrastructure by 700% by 2012, phew, good luck with that.

    Now, something about Rediff, in simple words, Rediff is not google or baidu of India. I have so many friends from India, everyone surely had created an email account with Rediff at one point in their lives but thats about it. It's a portal business, how many people go to Yahoo and use their portal business, really ? As far as their innovativeness is concerned, yes they created MyPage and adding online games and stuff, but so far, I have never received any friend request or Invite for using that from any of my friends, nor many are talking about it, Instead, these days all I am getting is new friend requests each day on my Facebook. Indian people are surely moving away from Orkuts and Rediffs and joining Facebook. I am not saying that Rediff will die down soon, but because many people have created email accounts earlier in their life, some will keep using that like Yahoo mail and some other services for many years, but thats about it.

    There are lot of other companies that are highly growing and coming back to limelight, but thats a topic for other day, but sorry Rediff is not one of them.

    I do not own any shares of Rediff. I just thought of writing this, just to see how stupidly Rediff price is growing and sooner lots of people will loose their money once that hope turns into just a mirage. burst!!

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