Hey there, Fools. I've summoned our
Motley Fool CAPScommunity once again to highlight a few
of Tuesday's biggest winners among the stocks with
top ratingsof four or five stars:
Company
Yesterday's Gain
Patriot Coal (NYSE: PCX)
14.21%
Coventry Health Care
8.48%
Honda Motor
4.83%
UnitedHealth Group
4.70%
BP (NYSE: BP)
4.22%
There's a reason I selected those notable gainers, as
opposed to other winners making noise on Tuesday, like
one-star stock
Vonage Holdings : Stocks go up all the time,
but unless you were able to predict the pop, what does it
matter? Â
Our community of more than 140,000 CAPS Fools considers
its high-star stocks the most likely to outperform the
market.
Written in the (five) stars?
For example, 95.6% of the 742 members who've rated
Patriot
Coalhave a bullish opinion of the stock. In
late April
,
one of those Fools,
devilinside, seemed pretty stoked about the dusty black
stuff:
Steel can't be produced without it. ... [Patriot] Coal
is poised to go far once this economy turns around. They
seem to have their debt under control and enough cash flow
to keep them going until things do turn around. They have
reduced production and are quickly reducing inventories. No
industrial nation can grow without coal.
Patriot Coal is up more than
235%since that call. In fact, yesterday's
double-digit pop came after the company's third-quarter
results easily topped Wall Street estimates on rebounding
demand for steelmaking coal -- consistent with devilinside's
outlook.
The bullish lesson?
Learn to pounceon Mr. Market's short-sightedness.
Turnaround stocks aren't always easy on the stomach, but if
you truly believe in a company's
long-termtailwinds, significant slowdowns offer the
very
best opportunities
.In Warren Buffett's words, "Most people get
interested in stocks when everyone else is. The time to get
interested is when no one else is. You can't buy what is
popular and do well."
And now for the losers ...
Of course, winning isn't everything in the stock
market.
Here are five of Tuesday's biggest decliners with one- or
two-star ratings: Â
Company
Yesterday's Loss
MGM Mirage (NYSE: MGM)
12.45%
Baidu (Nasdaq: BIDU) Continued... |