We all know which stocks have made Wall Street's Buy List. What I want to know -- and I'm guessing you do, too -- is who's doing the buying. Which funds are buying Wall Street's most popular stocks ... and how does their judgment compare with that of our Motley Fool CAPS community?
Here's our latest group of contenders:
|
Company |
Last closing price |
CAPS Rating (out of 5) |
|---|---|---|
|
Powerwave Technologies |
$4.05 |
***** |
|
ReneSola |
$22.96 |
**** |
|
Solarfun |
$21.64 |
*** |
|
China Architectural Engineering |
$10.10 |
** |
|
Kosan Biosciences |
$5.43 |
** |
Sources: Motley Fool CAPS, Yahoo! Finance.
Morningstar shows several fund fans for cellular infrastructure provider PowerWave. But only one fund gets five stars from rating agency Morningstar.
Allow me to introduce you to the Target Small Capitalization Value (TASVX) fund, which has outpaced its category peers every year since 2002. Credit the stock-picking skill of top manager Paul Viera and his team. Together, they've produced more than two percentage points a year of alpha over the fund's best-fit index.
Even better: Target Small Cap has no load and features a very reasonable 0.73% expense ratio. Here's a look at the top five stocks in its portfolio today:
|
Company |
Last closing price |
CAPS Rating (out of 5) |
|---|---|---|
|
Cabot Oil & Gas |
$68.03 |
**** |
|
FLIR Systems |
$37.55 |
***** |
|
Bucyrus Int'l |
$75.36 |
***** |
|
Westar Energy |
$23.68 |
***** |
|
Pharmaceutical Prod. Dev. |
$44.24 |
***** |
Sources: Morningstar, Motley Fool CAPS.
There are some excellent choices here. FLIR Systems, for example, gets the nod from one of my favorite Foolish stock pickers, TheGarcipian, for a short-term victory over the market. (He's been right thus far.)
Color me unsurprised. TheGarcipian is a great stock picker, and data from Fama and French illustrates that as an asset class, small-cap value stocks tend to outperform all others.
So I'll keep with history with today's top pick: small-cap mining equipment maker Bucyrus, which caught fire last month after digging up golden results in its fiscal first quarter. CAPS All-Star ww2004 called the run-up in February but, if his pitch is to be believed, years of gains remain:
World demand will continue to drive mining for the next several years. These guys provide the equipment to do it, the classic method to make money in mining. The order backlog is 2 years. Their business is global.
I agree, but I'm even more interested in what you think. Would you own Bucyrus, or any of the stocks in the Target Small Cap Value fund, at today's prices? Log into CAPS today and let us know what you think. It's 100% free to participate.
