Today, we list a pair of stocks that despite the incredible volatility in the market made some of the biggest moves higher over the past month, and we'll pair them 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)
|AuthenTec (Nasdaq: AUTH )||88.2%||**|
|GeoEye (Nasdaq: GEOY )||51.3%||*|
A mighty temblor
Acquisitions were the motivation behind some of the biggest gainers this past month. Apparently the market's lackluster performance created some bargain-basement opportunities, and companies with cash on the side were ready to rush into to scoop them up.
Peet's Coffee agreed to be taken private by a German private-equity firm and is up 28% over the past month, though it's 45% higher from the low point hit just before the going-private news hit the wire. Chicago Bridge & Iron just announced its intention to by Shaw Group, which sent the latter's shares soaring 50% higher, GlaxoSmithKline is buying Human Genome Sciences (Nasdaq: HGSI ) , and Wellpoint is buying Amerigroup.
As is evident, it's a broad-based buying spree happening across all industries. Health care, industrials, consumer goods, and now our two featured winners, AuthenTec, in technology, and GeoEye, in aerospace and defense.
An authentic opportunity
AuthenTec is benefiting from Apple's (Nasdaq: AAPL ) need to prove its products are safe in widespread business use, and the security specialist's end-to-end safety programs give it an elevated level of protection. It doesn't hurt, either, that the acquisition pulls the carpet from under the iPhone's biggest rival, Samsung, as the handset giant had only just signed on to have AuthenTec provide its technology across many of its platforms. Most analysts agree Samsung won't continue using AuthenTec if Apple ends up owning it.
GeoEye had started the verbal assault by making an unsolicited offer for its rival of enhanced imaging solutions for government, institutions, and industry, but DigitalGlobe laughed it off, saying it showed how desperate GeoEye was. When the federal government gutted the Enhanced Imaging program that represented some 66% of GeoEye's revenues, it was clear the eye-in-the-sky provider had been more than just winged. It was going to be grounded. But DigitalGlobe stepped forward and offered to buy its crippled rival, and GeoEye had little option available other than to accept.
While stocks are soaring today on a better-than-expected jobs report -- I can guarantee they'll fall back when the realization sinks in it had more to do with Bureau of Labor Statistics number massaging than with real jobs gains -- there are still a lot of companies trading at discounted values.
CAPS member bobcatba noted just before the acquisition news that "Things are starting to come together for" AuthenTec, and how right he was.
While the GeoEye deal seems done -- who else is really going to step forward at this point? -- Samsung could always make a counteroffer for AuthenTec. Let us know in the comments section below on or the AuthenTec CAPS page if you believe Samsung or someone else will engage in a bidding war. With the stock still trading above Apple's $8 per share offer, it seems investors think it's a possibility.
Shake, rattle, and roll
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