5 All-Star Stocks

Recs

5

Win or lose, we've all got an opinion about which stocks are rockets and which are dogs. If we could invest like Peter Lynch or Mohnish Pabrai, we'd probably have a lot more companies in our win column than on the loss side of the ledger. Warren Buffett began buying railroads last year, and just about any company that ran on tracks came into play.

When top-notch investors back a stock, you might want to give it more consideration. Over on the investor collaboration site Motley Fool CAPS, we can do just that. On CAPS, players who've earned a rating of 80 or better by consistently outperforming their peers are dubbed All-Stars. Sometimes these ace investors will back a stock that others think is a dog. Considering the All-Stars' track records, we might want to look a little more closely at their selections.

Here are five companies that have been marked down by some investors, but enjoy unanimous All-Star backing:

Company

Total Ratings

% Bulls

All-Star Ratings

inVentiv Health (Nasdaq: VTIV)

1,009

98%

308

Spreadtrum Communications (Nasdaq: SPRD)

132

96%

32

Monogram Biosciences (Nasdaq: MGRM)

75

94%

11

White Electronic Designs (Nasdaq: WEDC)

25

96%

8

Novogen (Nasdaq: NVGN)

54

89%

9

Of course, this isn't a list of stocks to buy and sell. It should instead serve as a starting point for your own research and analysis.

Inventing opportunities
Pharmaceuticals and life-sciences marketing, communications, and staffing firm inVentiv Health has found that there are profits to be made by expanding its horizons internationally. While it has a presence in countries around the globe, its expansion into Latin America provides some unique opportunities that should build on its successes. The six major Latin American markets of Argentina, Brazil, Chile, Colombia, Mexico, and Peru boast nearly 80% of the region's population. inVentiv Clinical, the contract research arm of inVentiv Health, is a key component of its goal to become a global clinical services provider. The segment provides nearly 20% of the company's revenues and saw 26% growth in the first quarter.

CAPS investors like bluememphis believe in the ability of the Motley Fool Hidden Gems recommendation to take advantage of the changing market:

VTIV is well [positioned] for the baby boom boost in medical care needs over the next fifteen years. The boomers will increase demand and Medicare will tighten payment levels. VTIV reduces costs and will allow their customers to take advantage of the coming tidal wave.

inVentiv's international expansion has some investors, like CAPS All-Star 21popsontop, seeing future outperformance:

There we go with that smart management, Already showing nice growth, but [let's] take it where some real growth is, Latin America.

inVentiv has attracted more than 1,000 CAPS players, one-third of whom are considered All-Stars. While fewer than 20 investors have marked the firm for underperformance, only one All-Star has seen fit to do so. That's a pretty amazing record.

An all-star act
Although a few CAPS investors have bet against the house here, we haven't yet heard from you. Why not head over to Motley Fool CAPS and let us know what you think about these and your other favorite investments. It's completely free, and along with the other 100,000 investors there, you may help uncover the next All-Star Stock.

“Make Big Money With Options” Motley Fool CFO Ollen Douglass recently made over $100,000 buying options on 7 well known stocks. Now we’re committed to turning his small fortune into a massive one! And we want you to join us! Enter your email address to hear more:

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

TD AMERITRADE
more info
ShareBuilder
more info
Power E*Trade

more info
Scottrade
more info
Fool Disclosure

DocumentId: 643945, ~/Articles/ArticleHandler.aspx, 12/2/2009 7:08:23 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

The Must-Read Story on Fool.com
Is Everybody Losing It in Finance's Nervous Breakdown?

Related Tickers

12/1/2009 1:50 PM
NVGN $2.37 Up +0.00 +0.02%
Novogen Limited (A… CAPS Rating: **
VTIV $16.12 Up +0.28 +1.77%
inVentiv Health, I… CAPS Rating: *****

Community: Investing Wiki

Term Of The Hour

Industry leader: Industry leader may be defined in several ways. Most often it is the company in a sector or business line with the highest sales, highest market share, or highest profits. But it can also be a technology leader who sets the standard for new products or the player with the most visible public image. Individual executives like Warren Buffett are examples who may be known personally better than their…

Want to learn more or edit this definition?
Click here to read more!