There are one-hit wonders, and then there are those stocks whose initial big moves are only a preview for even bigger gains to come.
Today we list a pair of stocks that made some of the biggest upward moves over the past month, despite the incredible volatility in the market, 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.
1-Month % Change
CAPS Rating (out of 5)
|ChipMOS Technologies (Nasdaq: IMOS )||70%||***|
|Keryx Biopharmaceuticals (Nasdaq: KERX )||22%||***|
Source: FinViz.com. 1-Month % change from Feb. 8 to March 9, 2012.
While you were out, the markets rebounded, but they may turn tail again if Europe's fragile financial system falls apart. 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
Last September, I suggested Taiwanese semiconductor test and assembly outfit ChipMOS Technologies was prepared to run higher. The bankruptcy of high-profile customer Spansion, along with the financial distress suffered by ProMOS left ChipMOS in tumult, yet I pointed out it was in the process of improving its financial position by paying down its debt.
There was still risk involved because five customers accounted for more than half of its revenues -- and reliance upon just a few can wreak havoc, as was seen with Spansion and ProMos -- but it was a cheap stock regardless, particularly when compared with several of its rivals.
Since then ChipMOS has tripled in value, while Advanced Semiconductor Engineering is up 10% and Amkor Technology has risen 43%. Yet even after that fabulous run, ChipMos is still valued at less than six times earnings estimates. With several customers serving as suppliers to Apple, such as Micron Technology (NYSE: MU ) and another that provides small-screen LCDs, there should be plenty of runway left to allow additional run-ups.
CAPS member GoBears86 agrees the chip-test equipment maker has gotten its act together: "Getting costs under control, improved debt/equity ratio, small share buyback, profitable last quarter, good leverage if business picks up."
I've gone and marked ChipMOS on CAPS to continue outperforming the broad indexes, but tell me in the comments section below whether you think its run is over, then add it to your watchlist to see how it plays out.
Expectations of a positive FDA ruling are driving Keryx Biopharmaceuticals higher, along with its partner AEterna Zentaris (Nasdaq: AEZS ) . Even though overly enthusiastic commentary by a blogger sent the stock prematurely soaring, perifosine is still seen as having a good chance of success.
The multiple myeloma therapy is only awaiting its 360 event -- the time when 360 deaths have occurred in the trial, after which they can view the data and compile the results -- and while March is expected to be the time frame in which that happens, the clock is ticking, and there can be no assurances. Besides, it still takes time to analyze data. AEterna, however, will be presenting preclinical data over the weekend, and both it and Keryx are moving higher in early morning trading today in anticipation of what will be said.
With 92% of the nearly 400 CAPS members rating Keryx to outperform the market averages, it's clear a lot of investors are expecting there to be at least a short-term bump in the share price on the data's release. Add the biotech to the Fool's free portfolio tracker and tell us on the Keryx Biopharmaceuticals CAPS page if you think it will be able to continue its climb higher regardless of the outcome.
Shake, rattle, and roll
These two stocks shook the market this past month, but the Fool has found one company that's digging up massive profits and is likely to continue to do so if the markets become rattled. Roll on over to get your free copy, but hurry, because it's available only for a limited time.