5 of Last Week's Biggest Winners

What's better than momentum? Mo' momentum.

Let's take a closer look at five of this past week's biggest scorchers.

Company

Jan. 27 Weekly Gain My Watchlist
Illumina (Nasdaq: ILMN  ) $51.69 42% Add
Quepasa (AMEX: QPSA  ) $4.90 43% Add
Sequans (NYSE: SQNS  ) $3.80 36% Add
RealNetworks (Nasdaq: RNWK  ) $10.01 35% Add
Arctic Cat (Nasdaq: ACAT  ) $30.65 32% Add

Source: Barron's.

Illumina surged after Roche approached the biotech with a sweetened hostile buyout bid. Roche is now asking shareholders to tender their shares at $44.50 -- though watching the stock move even higher than that will mean that Roche will have to go even higher if it really wants Illumina.

Quepasa shares gained 43% on the week, with most of that coming on Friday afternoon after news broke on Facebook's upcoming IPO. Even though Facebook is obviously in a class of its own -- and Quepasa's business is now more based around myYearbook than its fledgling namesake social-networking site for Hispanics -- Quepasa's thin float makes it a volatile stock that moves quickly up or down.

Sequans moved higher after an investment newsletter sang the praises of the French provider of 4G baseband chips. It also didn't hurt that a rival smartphone chip maker -- while posting disappointing results overall -- saw strength in its mobile business.

RealNetworks saw its stock soar 35% after agreeing to sell 190 patents and 170 patent applications to Intel in a $120 million deal.

Finally, we have Arctic Cat clocking in as one cool cat. The maker of snowmobiles and ATVs posted blowout quarterly results, with revenue and earnings soaring 36% and 84%, respectively.

It was a great week for these five stocks. If you want to get an early read on some of tomorrow's major gainers, there's a special report on three hidden winners in a booming industry. The report is free -- like this article -- but it won't be around forever, so check it out now.

The Motley Fool owns shares of Intel. Motley Fool newsletter services have recommended buying shares of Intel and Illumina. 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.

Longtime Fool contributor Rick Munarriz calls them as he sees them. He does not own shares in any of the stocks in this story. Rick is also part of the Rule Breakers newsletter research team, seeking out tomorrow's ultimate growth stocks a day early.


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  • Report this Comment On January 31, 2012, at 12:03 AM, MHedgeFundTrader wrote:

    The street is chattering today over the prospect of an enormous payday with the imminent IPO for the social media company, Facebook. Price talk is valuing the company as high as $100 billion, making it the largest such floatation in history. Could the mega deal spell the end of the current bull market?

    Look at it this way. That is $100 billion that gets sucked out of the market. It is $100 billion that gets diverted away from existing equity allocations. Many investors will need to sell existing positions in other companies to pay for their new Facebook shares, especially in the technology sector.

    Can the market afford to lose $100 billion in buying power in its current fragile condition? I think not. Take a look at the chart below which has the (SPY) making a near parabolic move since the beginning of the year. At the very least, we need to pull back to just above $126, which takes us down to 1,256 on the S&P 500, smack dab on the 200 day moving average. If you don’t believe me, then take a look at the chart for the financials sector ETF (XLF), which has led the market this year and is clearly rolling over.

    I’ll tell you who the big winner in a Facebook IPOP will be. The San Francisco Bay area. $100 billion is a ton of money to pour into a single urban area. The issue is expected to create several billionaires and as many as 3,000 new millionaires in my neighborhood.

    The last time that happened was when Google (GOOG) went public, creating a wealth effect that never went away, taking the waiting list for a new Ferrari or Tesla out two years. Better buy real estate near Facebook’s Menlo Park headquarters, such as in Atherton, Palo Alto, and Mountain View. The bidding wars are about to begin!

    The Mad Hedge Fund Trader

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