Could These Stocks Double in the Next Month?

Last month, I gave you six stocks that I thought could double by the end of August. The article elicited a number of responses, both positive and negative. Now that we're halfway though that timeline, let's see how those picks are doing.

Why these stocks are potential winners
As you'll recall, my argument was based on two things I learned from Fool co-founder David Gardner: that innovation wins out, and that heavily shorted stocks can jump on any sign of good news. That's certainly been the case for Green Mountain Coffee Roasters, which has jumped another 16% since the beginning of July on another blowout earnings quarter.

So I went ahead and looked for companies that shared some of the same characteristics today that Green Mountain had then. Here's how they have done, and keep in mind while viewing this that, over the course of the past month, the S&P 500 is down slightly.

Company

Price June 30, 2011

Price July 29, 2011

Change

Entropic (Nasdaq: ENTR  ) $8.89 $6.68 (25%)
SodaStream (Nasdaq: SODA  ) $60.81 $73.35 21%
Ebix (Nasdaq: EBIX  ) $19.05 $19.69 3%
First Solar (Nasdaq: FSLR  ) $132.27 $118.23 (11%)
Travelzoo (Nasdaq: TZOO  ) $64.64 $52.80 (18%)
Coinstar (Nasdaq: CSTR  ) $54.54 $48.86 (10%)

Source: Yahoo! Finance.

Entropic's devices allow consumers to easily connect their electronic devices to one another and the Internet. Analysts at DisplaySearch expect that today's count of TVs connected to the Internet, estimated at 60 million, could balloon all the way to 500 million by 2015. The company will be coming out with its second-quarter earnings on Wednesday, so if any big moves are going to happen, they will likely occur around then.

SodaStream investors must wait until Aug. 11 for the company's earnings to come out. The company, which hopes to do to soda what Green Mountain did for coffee, has done quite well over the past month. This is due both to the fact that it has recently seen its price targets raised by analysts, and because investors may be viewing Green Mountain's positive earnings release as a bellwether for things to come for SodaStream. We'll see in a few weeks.

Ebix also joins the list of yet-to-announce-earnings group. The company has had a ho-hum month so far. If you'd like to get the inside scoop on Ebix before its Aug. 9 earnings release, our Motley Fool staff just published an exclusive interview they conducted with Ebix CEO Robin Raina.

Showing how busy the first two weeks will be, First Solar will be coming out with its earnings release on Thursday. If you'd like to get a view of the solar industry from 50,000 feet, the Fool's Reza Handley-Namavar recently offered thoughts on what's up with solar.

Finally, to some companies that have already announced earnings: Travelzoo and Coinstar. Travelzoo missed on both the top and bottom lines, disappointing investors and creating a feeding frenzy for short-sellers. That being said, the company managed to grow revenue 34% and earnings by 51%.

Coinstar, which operates the Redbox movie kiosks, has suffered two setbacks over the course of the past month. First, it announced the resignation of the head of its Redbox division, then it disappointed investors on its conference call this week by failing once again to offer any insight into its attempt to enter the digital streaming realm.

A final word about Foolish investing
It would be easy to read my earlier article as a "get rich quick" scheme; I fully understand that opinion. However, my larger point is this: Innovative companies will be labeled overpriced for years before others wake up to their story. I think all of these companies are innovative in their own right; some will work out and some won't. Those decisions shouldn't be made on earnings statements alone, but on the overall fundamentals of the company.

To show that I put my money where my mouth is, I owned several shares of Travelzoo before their recent tumble, and I plan on adding to those shares as soon as I'm permitted to.

If you'd like more ideas for investing your hard-earned cash, I'm willing to offer you a special free report: "The Only Stock You Need to Profit From the NEW Technology Revolution." Inside, you'll find out about another innovative company with a breakthrough technology that is changing the face of business. It's yours today, absolutely free!

Fool contributor Brian Stoffel owns shares of Travelzoo. The Motley Fool owns shares of Ebix. Motley Fool newsletter services have recommended buying shares of SodaStream International, Green Mountain Coffee Roasters, First Solar, Ebix, and Travelzoo, as well as creating a lurking gator position on and shorting shares of Green Mountain Coffee Roasters. 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. The Motley Fool has a disclosure policy.


Read/Post Comments (3) | Recommend This Article (15)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On August 01, 2011, at 2:23 PM, alexxthegreat wrote:

    Facebook is said to be working out a deal with Netflix to stream movies. Analysts at DisplaySearch are expecting the 60 million connected TVs this year to mushroom into 500 million. Steaming is huge. Google, Apple, and others will follow Netflix to South America and other countries. Entropic connects streaming. Recently added to the S&P Smallcap 600, a few of recent deals include Intel and TIVO. Entropic has deals with many companies in at least a dozen other countries. At the Entropic Investor Conferences: the CFO said: Organic business will produce a 400% increase in revenues over the next few years. The CFO also stated that ENTR expects to achieve scale, going up to 1 billion in revenues. Moca 2, the newest product has no competition. Operating Margin was up about 600% last year: There is No seasonal softness in the second half . This is the best seamlessly streaming connection for Blue Ray, Gaming and all devices.

    Information at Entropic.com

    Symbol ENTR

  • Report this Comment On August 01, 2011, at 9:43 PM, Midlana wrote:

    I've never cared for articles that has a question mark in the title. It seems more like a way to avoid being held accountable for what's said than anything else.

    How about this, "Could these stocks *drop* in half in the next month?" They could, and since it's a question, it's no less valid. It sure makes writing easier, doesn't it????

  • Report this Comment On August 04, 2011, at 2:24 PM, eksummers620 wrote:

    I agree with Midlana. Look at Entropic today. DOWN 35%. Terrible article. Glad I only used it to play CAPs and not real money...

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