5 All-Star Stocks on Fire
Started Aug 27 at 10:22 ET (By HeadHunter)
When the clock's ticking down and the game's on the line, which of your teammates do you trust to sink a winning shot? Sure, you could dish the rock to your resident superstar -- but what if he's playing ice-cold at the moment? So instead, you pass to the guy with the hot hand, the one who'll be deemed en fuego tomorrow on ESPN.
Momentum investors are looking for stocks in a similar state of sizzle. But momentum by itself will only get you so far. I prefer to find high-quality stocks that also have some positive inertia on their side. It's like kicking the ball out to your team's superstars when they do have a hot hand.
To find these league-leading winners, I cross-referenced a simple momentum screen with data from The Motley Fool's CAPS investing community. Each of the companies below is up 30% or more over the past year, now trades within 5% of its 52-week high, and has been rated highly by CAPS players.
Who you gonna call? Boots & Coots!
The closest I've ever been to a major oil-well incident was the rig fire in There Will Be Blood. For the blokes at Boots & Coots, though, it's just another day at the office. Whether it's Exxon (NYSE: XOM) or Petrobras (NYSE: PBR) sinking drills into the earth, there are two sure things. First, they're going to want to get the most out of their well, and second, they're going to face certain risks in the process.
Boots & Coots offers services that help major oil players tackle both issues. The company's specialty is helping to prevent and respond to critical well events such as blowouts and fires, though it also offers workover services that help ensure that wells are running in tip-top shape. The company's most recent quarter shows how well it has been taking advantage of the booming oil market -- revenue jumped an impressive 136% from the prior year. So, yeah, the company is a lot more than just a funny name.
Magistrate is one of the 425 bullish CAPS members helping to make Boots & Coots a five-star stock. When he recently rated the stock an outperformer, he quipped: There will always be a need to put holes in Mother Earth. These are the guys and gals that put out the fires when Mother Earth gets angry. Which these days is often.
Meanwhile, in another part of the woods
Selling Fibre Channel and iSCSI (that's pronounced i-skuzzy) host bus adapters to tech giants like Cisco (Nasdaq: CSCO) and IBM (NYSE: IBM) -- QLogic's main business -- may be a long way from handling oil-well mishaps, but QLogic makes the cut on the strength of a big run over the past couple months.
The reason for the run? Well if the 20% year-over-year revenue growth during its second quarter doesn't grab you, then the doubling of earnings per share certainly should. This huge jump was due to the company managing to keep operating expenses in line as it solidly grew revenue, allowing those incremental revenue dollars to fall right into shareholders' pockets.
CAPS member knightwbc was right on the money while giving the stock a thumbs-up back in May, writing: "I see 20 a share sooner than you may think I call this company one of my safe plays for the year."
I think I heard a "booyah" somewhere out there -- thanks, Stuart Scott!
http://www.fool.com/investing/high-growth/2008/08/26/5-all-star-stocks-on-fire.aspx
Top 1%
blacktuna
Aug 28 at 2:22 ET
Well shiver me timbers if this company doesn't look sweet! (you forgot the symbol btw - it's WEL).
I was going to let go of the oil supporting industry after being not too happy with my ATW holding, but looking at the compared chart it looks like Boots is carrying the momentum while ATW isn't (http://finance.yahoo.com/q/bc?t=1y&s=WEL&l=on&z=m&q=l&c=atw)..
I like htis recomendation very much - thanks!
bt.
Top 93%
HeadHunter
Aug 28 at 3:39 ET
WEL is the tag for Boots & Coots sorry for not posting that, I wish MarketGuru allowed the creator of the post to edit or delete opinions so they can add important information like symbols ;)
Top 51%
staff
Aug 28 at 5:25 ET
Hi HeadHunter,
We don't allow editing posts for the same reason we don't allow editing your portfolio.
It is very important that people's trading as well as writing histories stay published in their original form.
We are however, debating among ourselves weather or not we should create a preview page before publishing your post - this would give you another chance to edit before posting.
We are fiercely divided on this as some people are saying - "Don't hurt the flow with 'are you sure you want to post this' pop-ups" while others feel it is a good feature to have in place.
I'd love to hear what the community thinks about this.
FYI, you can always add tags by commenting to your own post and printing the symbol in caps (AAPL not aapl).. It's not a perfect solution but seems like a fair compromise considering the goal.
Cheers,
Sean,
MG Staff.
Top 1%
blacktuna
Aug 28 at 11:23 ET
so far, so good. up 2.5 :)