10 Stocks To Shake the Market

In music they're called one-hit wonders, singers who belt out tunes but are never able to regain the magic of their big hit song. Think Norman Greenbaum's "Spirit in the Sky" or Brownsville Station's "Smokin' in the Boys Room." Monster hits never to be repeated.

We have seen similar one-hit wonders in stocks, too, like Pets.com or drkoop.com. Companies that burst on the scene -- many during the tech bubble heyday -- and never lived up to the promise they held.

Whole lotta shakin' going on
While nostalgia's fun, "10 Stocks to Shake the Market" isn't about finding stocks that can't repeat their success, it's about looking at those that have made big moves and are likely to continue doing so.

To do that, we're looking at 10 stocks that made some of the biggest moves up over the past month. We'll then pair that with the ratings issued by our Motley Fool CAPS community. Higher ratings suggest the members believe they'll continue to move higher in the future and outperform the market.

In the first 20 months after we began tracking the collective intelligence at CAPS in late 2006, the data shows that newly minted five-star stocks offered the best opportunities for investors, while the lowest-rated companies fared the worst. Four-star stocks outperformed the market by seven percentage points, and five-star stocks -- top honors in CAPS -- did even better.

Data as of Jan. 13, 2009.

With more than half of the stocks carrying a four-star or better rating, let's see why the CAPS community thinks even some of their lesser lights might outperform the market.

Indevus Pharmaceuticals
CAPS member foolergo8888 notes, Indevus Pharmaceuticals seems to have an attractive product portfolio that can be used to treat an amalgam of ailments. As pharmaceutical companies seek to shore up their own pipelines, or branch out into new therapies, they're going to look to acquire companies and their attractive intellectual properties just as much as they'll develop the treatments in house. It was Endo Pharmaceuticals' (NYSE:ENDP) decision to explore treatments beyond pain management that apparently triggered its $370 million buyout offer of Indevus.

Crosstex Energy
The natural gas pipeline company Crosstex Energy was recently identified as a company ready to roar -- just a week before shares nearly tripled in value. The collapse in natural gas prices had beaten the stock severely, and the shares have given a little bit back after their run-up, but CAPS member dlawd thinks we'll see both energy and share prices climbing higher from here: "undervalued by severa magnitude due to confluence of bad weather in the gulf and the economic tidal wave. Natural gas is going up."

HSN
Top-rated CAPS All-Star member TSIF doesn't understand why Home Shopping Network parent HSN was jumping up as much as it was, but with revenues, margins, and profits all in negative territory it looked like a good a time as any to bet on it underperforming the market.

Hmmm, everyone who shorted this the last month has gotten burned and burned badly. Whomever is snapping up this trap can probably keep pulling it enough to attract others to it like moths to the fire, since it's not a high market cap flyer. But retail??? Catalog / TV retail? in this economy? In this credit market??? Someone will max thier credit card, someone will come to the aid of the addicts spending all day watching the shows and buying, buying, buying, while the electric bill from the big screen TV goes unpaid. Save them, someone help these poor folks! Sure HSN's margin is low, they are buying this stuff on the cheap similar to what Overstock does. BUT....they are not making a profit since the spin off.

Shake, rattle, and roll
With these shaking the market this past month it pays to start your own research on them at 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.

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