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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 for even bigger and better gains to come.
Today, we've listed three stocks that made some of the biggest upward moves over the past month, 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^
|China GengSheng Minerals (Nasdaq: CHGS )||99.4%||*|
|Nymox Pharmaceutical (Nasdaq: NYMX )||91.0%||*|
|Rediff.com (Nasdaq: REDF )||107.1%||**|
^From Nov. 17 to Dec. 17.
As the markets whipsaw to changes in second-half economic performance, the S&P 500 has been volatile. 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
That didn't last long. The mad rush into rare-earth minerals seems to be subsiding. China GengSheng Minerals, which doesn't even mine rare earths but got caught up in the euphoria nonetheless, has been cut in half from the ridiculous heights it hit at the end of last year. Molycorp is on its way back down to earth, falling 26% from its 52-week high (which is really only a couple of weeks old), and China Shen Zhou (NYSE: SHZ ) -- another non-rare earth stock pushed up by the lemmings -- has lost a quarter of its value.
Yet as far as it's fallen, China GengSheng is still orders of magnitude higher than where it was a month ago. It tried to capitalize on the surge in stock price by announcing a $10 million share offering at $4 a stub, but the investor blinders may have come off. While I marked the company to underperform the market based on the unwarranted run-up in its shares, I'm willing to revisit that decision after it falls further, which I believe it will. As I wrote:
Another Chinese mining stock with only the most tangential relationship to rare earth minerals. I missed picking CHGS to underperform recently, but its shares are still well above the price they traded at before this [rare earth elements] nonsense kicked in. I believe the stock still has a long way to fall before its back to where it should be.
China GengSheng actually manufactures fracture proppants that are used to keep well fractures "propped" open, allowing oil and gas to flow more smoothly. Carbo Ceramics (NYSE: CRR ) is an industry leader with ceramic proppants, and the oil and gas industry should remain a growth business. China GengSheng's proppants will likely find a ready market despite the heady heights its stocks rose to on unrealistic expectations.
Let us know on the China GengSheng CAPS page whether this stock will mine the market of expectations.
I gotta go!
Nymox Pharmaceutical continues to gain from its enlarged-prostrate treatment, NX-1207. The drug reduced patients' urgency to urinate by 52% after three months, compared with a placebo, in phase 3 trials. But Pfizer, Abbott Labs (NYSE: ABT ) , and GlaxoSmithKline (NYSE: GSK ) all manufacture alpha blockers or 5-alpha reductase inhibitors that could prove to be hurdles, at least here in the U.S.
Nymox announced last month that Italian drug company Recordati agreed to develop and sell the drug in Europe, the Middle East, and parts of Africa. In return, it will pay Nymox milestone, supply, and royalty payments.
While CAPS All-Stars are evenly split on whether Nymox can make the grade, the broader community is leaning more in its favor, with nearly 70% believing it can turn in market-beating performances in the future. It's still flying under Wall Street's radar, though, which suggests there's still ample opportunity for the stock to soar higher as NX-1207 progresses.
You can follow along by adding the stock to your watchlist and having all the Foolish news and analysis gathered together for you in one place.
A rare opportunity
It's true that I suspected Indian portal Rediff.com had a good chance to benefit from that country's decision to expand the number of broadband connections 16-fold by 2014, I just didn't expect Rediff to jump so soon. Shares have more than doubled since I made my pitch on the Rediff.com CAPS page last month.
Is this a short squeeze at work? The number of shorts that piled into Rediff at the end of last month grew by 12%, but the number of short shares is not really many. Still, the portal has continued to rise since then and shorts might be deciding the smartest move is to cover their position and wait for the run-up to end.
Still 83% of CAPS members rating Rediff think the long-term prospects for it look positive. Be sure to add the Indian portal play into the Fool's free portfolio tracker, then head over to the Rediff.com CAPS page and add your own thoughts on its prospects.
Shake, rattle, and roll
With these stocks shaking the market this past month 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.