5 Stocks That Swayed the Skeptics

It pays to be skeptical when you invest. In addition to doubting what theanalysts tell you, you often have to discount what the companies tell you. On Wall Street, going against the grain can reap huge rewards. Like baseball's greatest place hitter, "Wee Willie" Keeler, great contrarian investors such as Benjamin Graham, Warren Buffett, and John Neff "hit 'em where they ain't."

Today new breed of contrarian investor can be found at Motley Fool CAPS, where these savvy Fools are willing to see both the upside and downside of a stock. While their often negative opinions peg them as "skeptics," their top CAPS ratings mean they're right far more often than not. When they find a stock they actually believe will outperform, perhaps we should take notice.

Here are some recent picks from our list of Foolish CAPS skeptics:

Just as a list of their worst stocks would not be a list of stocks to short, this list of the skeptics' favorites isn't automatic buys. But they do offer an excellent starting place for your own research into extreme buying opportunities.

Inquiring minds want to know
Kindling enthusiasm around its e-book read has been tougher slog than wading through War and Peace for Amazon.com. But with the possibility of a new Kindle coming to market soon, and discounts on existing versions making it more affordable, the Kindle could become for books what the iPod was for music. Still, CAPS member dwwoelfel isn't so sure:

Right now the Kindle has no real competition; that should change soon. Their website has become as much a reference as a store -- look up a product on Amazon, check out the rating, then buy it elsewhere (from a real store with no shipping charges and no wait, for example). Product pages are annoying, covered with useless information. The site is confusing and hard to navigate beyond the product page.

It's a great company, and it will continue to grow, but $80 is too high.

Titanium is used in almost everything around us. Since Titanium Metals derives much of its revenue from the aerospace industry, order cutbacks by Boeing (NYSE:BA) and Airbus left the world's largest titanium supplier flying low to the ground. Yet the company's hanging in there, with a solid balance sheet, a valuation below its historic averages, and an industry leadership position. Many investors, including CAPS member ChessmanJ, are steeling themselves for the coming rebound:

The reason's that I'm picking Titanium Metals are simple:

1). The market overreacted to a short term drop in titanium, which should soon be back (But probably not to the former highs in the near-term).
2). The market has not yet reacted to the fact that the plane sales will be up by a ton in the coming years, or that newer planes require more titanium than older models.
3). The market has not yet reacted that the military spending program is up, and the new fighter jets, armor, desolation plants, oil risers, and industrial equipment all need more titanium than before.

For the most part, CAPS member socialconscious has been making a cottage industry out of betting against SiRF Technology, to great effect. Not only does socialconscious feel that the GPS chip maker's fundamentals work against it, but he also notes that the courts have not been kind to it in their rulings, and that rival Broadcom (NASDAQ:BRCM) has a better product:

My 5th time to the well did 16%, 26%, 9%,20% last 4 times. IMHO this stock has horrible fundies to begin with hence why I believed it should be shorted. Broadcom IMHO has them by the scruf of the neck( to be polite) and in their main business of GPS? In short ITC Administrative Law Judge Paul Luckern had previously ruled that two of SiRF's global positioning systems patents were not infringed by Global Locate( bought by Broadcom in 2007).All in my understanding and humble opinion....Please due your own due dilly and be well. Great to be here! Tough to short this again as it may be snapped up as a value play. s.c.

With another judge recently recommending that some of SiRF's chips be banned, the stock seems to face a rocky road toward any future upside. Then again, perhaps it's cheap enough now for someone to consider buying.

Seeing past the obvious
Skeptics know that just beyond the storm clouds lies a shimmering morning. Conversely, the sun can't shine forever, whatever the crowds may think. It pays to start your own research on these stocks on 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. What's your forecast? Drop by CAPS and tell us which stocks are your favorite contrarian picks.