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 of even bigger and better gains to come.
Today, we've compiled 10 stocks that made some of the biggest upward moves over the past month. We'll then pair that list 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.
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Stock
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30-Day % Change
|
CAPS Rating (out of 5)
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Stone Energy (NYSE: SGY )
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102%
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****
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|
Yingli Green Energy (NYSE: YGE )
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93%
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****
|
|
Angiotech Pharmaceuticals (Nasdaq: ANPI )
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213%
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***
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Geokinetics
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194%
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***
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Genworth Financial
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170%
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***
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|
Cell Therapeutics (Nasdaq: CTIC )
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338%
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**
|
|
ArvinMeritor (NYSE: ARM )
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163%
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**
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|
Oxigene (Nasdaq: OXGN )
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134%
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*
|
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Carmike Cinemas (Nasdaq: CKEC )
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129%
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*
|
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Hemispherx BioPharma
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223%
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*
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Half of these stocks carry average or better ratings; let's see why the CAPS community thinks any of these might outperform the market.
A mighty temblor
Will getting FDA approval for pixantrone be of much help to Cell Therapeutics if there is still such a highly adverse reaction to the therapy? Sure, there will be a market for the drug, which will be used to treat lymphoma, leukemia, and breast cancer, but it might not be the billion-dollar blockbuster that some investors were hoping for.
Yesterday, the biotech released results from a clinical trial that purported to show that pixantrone was successful at treating aggressive non-Hodgkin's lymphoma, but at least one analyst ripped apart the press release as merely disguising the toxicity that the drug actually causes to the heart. Still, the shares soared following the news, but they've since given back most of that gain.
Top-rated CAPS All-Star TSIF believes that investors in Cell Therapeutics will see their ownership stakes diluted as the biotech seeks to swap debt for cash and equity:
Cell Therapeutics continues to dilute share holder value while hoping the FDA grants it mercy. That could still happen, or a buyout could occur, but either would not net a reasonable change to valuation. Pixantrone, if approved, has a very limited market base, far below the $600M - $1 billion that management predicts. Hope, while waiting on the FDA hinges on refinancing debt at $0.20-$0.30 on the dollar. Possible, but not likely. In the meantime the share count is sky high and growing, which would disperse most of any EPS or buyout that developed.
Further, the company has been valued on the prospects of pixantrone, but even if it gains FDA approval, the drug won't be out till later this year at the earliest, or possibly 2010.
CAPS member clutedog admits that an investment in the biotech is speculative, but argues that most people aren't considering all the potential drugs in Cell Therapeutics's pipeline that may offer similar potential for growth. This CAPS member argues that while the swap is dilutive, it does help clean up Cell Therapeutics' balance sheet:
Sure, it's a bit speculative...there's a chance the two drugs that are pending approval don't get through. And there's also some question about whether these drugs will be million-dollar drugs or billion dollar drugs. But the drug no one is even looking at is their novel minor-groove binding cancer killer (brostacillin, sp?) further down the pipeline. Nova RX is the only drug developer out there with a candidate that has as much potential. Their balance sheet is getting clean, and once they have some solid income, life will be good.
Shake, rattle, and roll
These stocks have been shaking the market this past month, and 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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