Drink In These 5 Top Stocks

Whether it's the corporate lunchroom, your cubicle, or the local watering hole after work, there are regular places we gather to discuss news, sports, or -- if you're like us -- stocks. Here at Motley Fool CAPS, we gather around the virtual water cooler daily to rate stocks and delve into their merits as investments.

In our 140,000-strong CAPS community -- where 5,300 stocks get a thumbs-up or thumbs-down -- members seek businesses they think will outperform the market. Below, we'll take a look at some of the most popular and talked-about stocks on CAPS and examine whether you think they'll continue their winning ways.

A tall drink of water
Solarfun Power has been having a lot of fun lately, and shares are up 35% over the past 12 months. It's not the rip-snorting good time had by Trina Solar (NYSE:TSL) investors, who've seen their stock gain 500% in a year, but Solarfun has just about marched in lockstep with the broader market averages.

CAPS member topsecret10 was surprised to see Solarfun trading at less than $5 a share at the end of October, believing it will achieve "long term gains on solar technology In China." Member solarlongshort might have been just as surprised for the opposite reason, wondering in July whether the maker of photovoltaic cells and modules would ever amount to more than a "money pit."

If recent performance is any indication, though, Solarfun will shine. It reported a third-quarter profit that beat analyst expectations, and management said that even in the German solar market, it expects sales to grow. Germany is the top market for solar products, but the government is contemplating slashing industry subsidies, so some are worried that if that happens, the industry would be in for difficult times.

What are the odds?
Las Vegas casino operator MGM Mirage was another company laughing at Wall Street's prognostications, as its quarterly earnings handily beat forecasts. But CAPS member lucky7K doesn't plan on going down with the ship.

Nevada real estate is toast, and Las Vegas real estate market is burnt toast. So December 2009 would have to be the worst time to launch that new $12 Billion dollar condo project, right? They already took a 30% hit on those condo prices, and we haven't yet gotten to the launch.

MGM built the Titanic in Vegas but she hasn't taken her maiden voyage just yet.

Not taking wing
One company performing just as expected is homebuilder KB Home, which along with Toll Brothers (NYSE:TOL) and other builders continues to suffer in a weak housing market. The Commerce Department just issued a report saying that homebuilding took an unexpected dive last month, to its lowest point since April, because the excess inventory on the market can't be absorbed.

CAPS All-Star DarthMaul09 finds there are too many factors weighing down the industry.

Stagflation kills the buyers and the builders lose their customers. Fraud in the first-time home buyer government assistance program may slow home sales in the low end part of the market.

But KB Home has its own unique set of circumstances, such as a new Securities and Exchange Commission investigation into alleged accounting and disclosure violations. Analysts say they'd be surprised if they found irregularities, because the company has been scrutinized every way to Sunday during past investigations (there have been a few), and the new management team seems much more on the up-and-up. But the investigation adds a new level of uncertainty for investors.

Gather 'round
With so many good opinions about today's top companies, why not grab a pointy paper cup from the dispenser and join us at the Motley Fool CAPS water cooler? Your input can help guide other investors to stocks with bright prospects. 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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