Actions speak louder than words, as the old saying goes. So why does the media focus so much attention on what Wall Street says about companies, instead of what it does with them?
Once upon a time, we didn't know what the bankers were up to. Now, thanks to the folks at finviz.com, it's easy to keep tabs on the stocks that financial institutions buy and sell. The 170,000-plus lay and professional investors on Motley Fool CAPS can give us further insight into whether these decisions make sense.
Here's the latest edition of Wall Street's Buy List, alongside our investors' opinions of the companies involved:
|
Company
|
Recent Price
|
CAPS Rating
(out of 5)
|
| Pengrowth Energy Trust (NYSE: PGH ) |
$14.14 |
***** |
| Sinovac Biotech (NYSE: SVA ) |
$3.98 |
*** |
| Paramount Gold and Silver (NYSE: PZG ) |
$3.25 |
*** |
| Fabrinet (NYSE: FN ) |
$23.05 |
** |
| Oncolytics Biotech (Nasdaq: ONCY ) |
$6.10 |
* |
Companies are selected finviz.com, screening for decent size market caps and 20% changes (by dollar value) in institutional ownership over the past three months. Recent price provided by Yahoo! Finance. CAPS ratings from Motley Fool CAPS.
Wall Street vs. Main Street
Up on Wall Street, the professionals think these five stocks are the greatest things since sliced bread. (And by "bread," I mean money.) They've been ...
And can you blame them? Profits-wise, small-cap stocks have been absolutely killing their larger-cap brethren this year. But it's not all small-cap mo-mo, all the time. Even on Wall Street, dividend stocks retain appeal. This week, Wall Street is also homing in on a CAPS favorite in 6.2% dividend payer Pengrowth Energy Trust.
The bull case for Pengrowth Energy Trust
Just like the folks up on Wall Street, CAPS member docado333 likes Pengrowth for its habit of paying out monthly dividends. Even better, All-Star investor kpscott believes that "energy will continue to go higher, enabling the already large dividend of this company to grow."
As CAPS member Ubylyss points out, Pengrowth possesses "ample reserves of oil in a safe environment," two factors that should lead to the stock being "keenly acquired" by investors seeking "a handy income paying addition to your protfolio."
It looks even better when you consider the alternatives: Larger rival Canadian Natural Resources (NYSE: CNQ ) , for example, pays a smaller dividend (0.8%), but costs more (28.6 times earnings). Smaller Provident Energy (NYSE: PVX ) pays nearly as much as Pengrowth, but after losing money for two straight years, it currently possesses a P/E ratio of "infinity." Relative to the competition, I'd say Pengrowth is looking pretty good.
Time to chime in
But is it good enough for your portfolio? That's what we really want to know, after all. That's the reason we set up CAPS in the first place -- to find out what investors like you think about the stocks we rate. Do you have an opinion on Pengrowth Energy Trust? Give us a shout. Tell us what you think about it.
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