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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

Genetic Technologies (Nasdaq: GENE  )

99.6%

*

Hansen Medical (Nasdaq: HNSN  )

72.3%

*****

Rediff.com (Nasdaq: REDF  )

70.6%

*

Source: FinViz.com; 1-month % change from May 26 to June 27.

While you were out, the markets have staged a remarkable recovery recently, enjoying its best week last week in almost two years. 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
Sure, Australian biotech Genetic Technologies has doubled over the past month, but over the past year, it's gained nearly 1000%, rising from a literal penny stock to over $10 a share. It's this type of gain that penny stock investors typically look for, though GT is the exception more than the rule.

Yet there's still a lot of risk here that the company could lose all of those gains. Genetic Technologies is the exclusive Australian licensee of Myriad Genetics' BRCA1 and BRCA2 patents, genes that indicate breast cancer susceptibility. Earlier this year a judge ruled that companies can't patent isolated DNA sequences since they occur in nature, and last week, Genetic Technologies requested that its shares not trade on the markets as it considers raising capital.

While it said it didn't expect the halt to last past Thursday, the stock has yet to trade and no further explanation has been forthcoming. Investors have a right to be fearful. Significant dilution or a significantly underpriced offering could cause the stock to plummet from its heights. Stopping a stock from trading for a day or two is one thing. For a week is just odd.

With just 29% of the CAPS members rating Genetic Technologies to outperform the broad market averages there's obviously deep skepticism here. But add it to your watchlist to keep an eye on what happens next.

Fast forward to growth
Analysts at Piper Jaffray are pumping Hansen Medical's pending robotic catheter system believing its approval will garner it a new customer base. That possible, but Stereotaxis' (Nasdaq: STXS  ) Niobe catheter system, while not completely analogous to Hansen's Sensei, is also seen as an improvement. Stereotaxis uses magnetic forces in its remote guidance system while Hansen opts for mechanical force navigation.

Stereotaxi also lined up a new partnership with Johnson & Johnson's (NYSE: JNJ  ) Biosense Webster division to market its Odyssey system, to along with Biosense designing and distributing catheters for use with the Niobe system.

The market, though, is likely big enough for several players. Two privately held companies, Magnetecs and Catheter Robotics, also employ remote navigation systems. The former uses magnetic forces, as its company name implies, while the latter uses mechanical force like Hansen.

CAPS member stocktheaf was ahead of the analysts when he advocated back in May that Hansen's new product announcements would boost the stock:

Have a new product announcement coming in the next few weeks and it may turn peoples heads again to the once high flying days of this stock.

Let us know in the comments section below, or on the Hansen Medical CAPS page, whether its robotics system is superior to that offered by its rivals.

Should I stay or go?
I guess we're about due for a bubble again in emerging market stocks. All it took was a fairly glowing review of Indian Internet portal Rediff.com in Barron's to send its stock soaring and erase the blues it's been experiencing.

Rediff is glomming onto the Groupon effect, launching a deals-of-the-day promotion that actually sent Travelzoo (Nasdaq: TZOO  ) shares plummeting. But when everyone is offering deals -- and today it seems like everyone is trying generate some positive spin from the halo effect -- can anyone profit from it? Rediff is already a money-losing enterprise.

But three-quarters of the CAPS members rating Rediff think it can beat the broad indexes, if not with some deal-making deal then with greater infrastructure spending by the government. The country plans to upgrade its infrastructure by increasing the number of broadband connections by 700% next year, providing growth drivers that both Sify Technologies (Nasdaq: SIFY  ) and Rediff can capitalize on.

Tell us on the Rediff.com CAPS page if you think its stock is still a great deal.

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.

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The Motley Fool owns shares of Johnson & Johnson. Motley Fool newsletter services have recommended buying shares of Johnson & Johnson. Motley Fool newsletter services have recommended creating a diagonal call position in Johnson & Johnson. 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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Related Tickers

5/25/2012 4:00 PM
REDF $4.56 Down -0.03 -0.65%
Rediff.com India L… CAPS Rating: *
HNSN $2.49 Down -0.07 -2.73%
Hansen Medical CAPS Rating: ****
GENE $4.82 Down -0.94 -16.32%
Genetic Technologi… CAPS Rating: *
STXS $0.29 Down -0.01 -3.33%
Stereotaxis, Inc. CAPS Rating: ***
TZOO $23.47 Up +0.52 +2.27%
Travelzoo CAPS Rating: **
JNJ $62.51 Down -0.59 -0.94%
Johnson & Johnson CAPS Rating: *****
SIFY $2.20 Down -0.05 -2.22%
Sify Limited (ADR) CAPS Rating: **

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