Top-Rated Stocks the Leaders Loathe

Momentum investors love to back companies with the wind in their sails. Contrarian investors typically pick up the cigar butts the market has tossed aside. So what do you call investors who turn against winners? Sourpusses? Shorts?

Over on Motley Fool CAPS, we sometimes call them the savviest investors around. When one of our All-Star players -- those whose stock-picking prowess places them in at least the 80th percentile of our community -- sours on a top-rated stock, perhaps we should take notice. Perhaps the player has found a chink in that highflier's armor, or a question mark in its financial footnotes. Or maybe it's just a hunch. That's why these tables aren't lists of stocks to buy or sell -- just starting points for further research.

Here's a list of stocks that some All-Stars spurned recently:

Source: Yahoo! Finance; Motley Fool CAPS.

Considering that on average, 96% of all investors rating these companies think they will outperform the market, what might have turned some of CAPS' top players against these otherwise widely admired companies?

Steely reserve
Vertically integrated mining and metals company Mechel has suffered every bit as much as the other coal stocks. Mechel slid along with the rest of the sector last week, despite the fact that two-thirds of its revenue comes from steel and the "vertically integrated" part refers to its supply of basic ores it needs to make steel, making it far less susceptible to the price vagaries than rivals. It's able to get virtually every bit of coking coal, iron ore, nickel, and ferrosilicon it needs for its steel products from internal sources.

Although coal and steel have experienced terrific run-ups over the past few years -- which may lead some investors to consider them priced for a correction -- investors like CAPS player wildeagain believe Mechel's integration and the continued demand for its products will lead to outperformance.

Chinese economy growing at 10 percent per annum need steel for their build out. MTL [controls] their own production costs by also having coal division to produce the steel. That's a win win. This stock has been unfairly hammered lately down 24 percent from its highs. That's a sure buying signal to me considering [United States Steel (NYSE:X)] is at a 52 percent high right now. X needs to ship their steel a long way. MTL is right beside China. That's an advantage.

What a gas
Another integrated company that some investors are punishing these days is Denbury Resources, an oil and gas exploration and production company that also owns the only carbon dioxide field east of the Mississippi River. That's key because it uses that gas to act like a solvent and free the oil from the rock in which it's trapped.

Just as coal and steel have enjoyed superb pricing, oil and gas have as well -- as we know all too keenly. Yet while some investors feel a correction is due here, too, demand still remains high. Denbury has signed pipeline agreements with Genesis Energy (AMEX:GEL) that, as CAPS investor AHavoc points out, not only ensures supply but frees up resources for  growth.

Recent deal with Genesis provides Denbury with attractive long-term financing for CO2 operations infrastructure, and feedstock for [Genesis'] continued growth. With the funds from this transaction Denbury can repay bank line and have cash left over for future growth. EPS excellent; RPS excellent; top in group; top quarterly, profit margin and ROE; Good volume movement for group. Healthy stock.

Make lemonade from lemons
We've seen how some investors feel about these companies, but Motley Fool CAPS is more than what they think, even if they're All-Stars. It's where we invite you to share your thoughts and insights and add your voice to the debate. Go ahead, have your say. We're eagerly waiting.