Wall Street's Wrong About These Stocks

Wall Street loves the companies listed below. So why do our Motley Fool CAPS members disagree? They've branded these companies with the lowest one- and two-star ratings, signaling their faith that the associated businesses will underperform the market.

So who's got it right? Professional analysts in their paneled offices, or a motley crew of community investors? We think we know who'll come out ahead. How about you?

Source: Motley Fool CAPS.

Now, as much as we love our CAPS community, don't sell these companies short just because they've garnered the lowest ratings. And don't go long just because Wall Street says to, either. Investing requires closer diligence on your part, so use these ratings as a launching pad for your own research.

A heavy burden
There's a lot to like about Apricus Biosciences. It has a full pipeline of drugs, with its most advanced candidate almost ready for market, and a financial position that should carry it through to the second half of 2012. Timing seems good, too: Its first drug treats erectile dysfunction, and it should be hitting the Canadian market later this year. Next year, Pfizer's (NYSE: PFE) Viagra loses it patent protection.

Yet the problem here is that erectile dysfunction, while a $2.6 billion business, is not exactly an underserved market. Along with Viagra, there's Cialis from Eli Lilly (NYSE: LLY), GlaxoSmithKline's Levitra, and a number of others. You can probably check your email's inbox for links to dozens of cheap versions of these drugs. And while Apricus's female arousal disorder drug remains in trials, Biosante Pharmaceuticals is nearing the end of its phase 3 trials on a so-called "female Viagra."

Highly rated CAPS All-Star member zzlangerhans has doubts about some of its other candidates, too:

There are many reasons to be dubious about the prospects of PrevOnco, the company's most advanced pipeline compound. PrevOnco is an unspecified derivative of lansoprazole (Prevacid), a commonly prescribed antacid. There is absolutely no evidence of any antineoplastic activity in humans. The company proposes to proceed directly to a phase III trial based on activity on tumors in mice.

If your interest in Apricus has been piqued, add it to your watchlist and see develops in the future.

Still a lot of money
I have to admit that I own both Motorola Solutions and Motorola Mobility (NYSE: MMI), but only as a result of my having owned their predecessor, Motorola, before the spinoff. Still, I actually like both businesses. I like Mobility's Xoom tablet, which got rave reviews earlier this year, though sales have been admittedly sluggish as everyone waited for the iPad 2, and I like Solution's entry into public safety networks.

The latter just got a boost by settling a lawsuit with Huawei Technologies, clearing its path to sell its wireless infrastructure assets to Nokia Siemens Network. The deal has apparently been reduced from the original $1.2 billion price to $975 million, but either way, it gives Motorola Solutions the cash necessary to expand. Joining with LM Ericsson, Motorola will be pushing forward into LTE-based public safety broadband networks.

While 84% of the CAPS members rating Motorola Solutions believe it will outperform the market indexes, its low two-star rating suggests that they think there are better places for your money. Perhaps with the lawsuits out of the way, that place may quickly become right here. Add the stock to the Fool's free portfolio tracker, and your opinion to the Motorola Solutions CAPS page.

Mid-tier magic
With solar costs falling rapidly, are industry plays like Trina Solar, LDK Solar (NYSE: LDK), and JA Solar unbelievably cheap? You can certainly make that case, and reports from China suggest that some second-tier makers of polycrystalline silicon solar cells have even priced their product below $1 per watt. With Italy due to announce its incentive programs this week, financial backers of the industry will be able to fund projects again, now that they know what landscape they face.

Yet even though prices have hit historical lows, demand remains weak, which means that the industry will have to work through the inventory it already has before it can expect new orders to flood in. That speaks to continued "cheapness" among many solar stocks, including Trina.

CAPS All-Star bluedome says that with the industry out of favor now, it will take time for Trina to realize its real value:

Solar is out of favor. This numbers for this company though are just spectacular. PEG ratio of 0.2. Debt ratio improving rapidly and net worth increasing rapidly. Eventually that will get recognized again.

Add Trina to your watchlist, then head over to the Trina Solar CAPS page and let us know why investors won't be burned investing here.

What's wrong with that?
It pays to start your own research on these stocks on 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.

Sign up today for the completely free service, and tell us which side of the street will be the ultimate winner.