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Friday, October 30, 2009
Brian D. Pacampara :: Townhall.com Columnist
Thursday's Biggest Stock Stars
by Brian D. Pacampara
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Hey there, Fools. I've summoned our Motley Fool CAPScommunity once again to highlight a few of Thursday's biggest winners among the stocks with top ratingsof four or five stars:

Company

Yesterday's Gain

Akamai Technologies (Nasdaq: AKAM)

13.05%

Manitowoc

10.47%

Vale (NYSE: VALE)

10.16%

Alcoa (NYSE: AA)

8.97%

Freeport-McMoRan (NYSE: FCX)

6.43%

There's a reason I selected those notable gainers, as opposed to other winners making noise on Thursday, like low-rated Motorola (NYSE: MOT): Stocks go up all the time, but unless you were able to predict the pop, what does it matter?  

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, 96.3% of the 2,717 members who've rated Motley Fool Rule Breakers pick Akamaihave a bullish opinion of the stock. In late July , one of those Fools, PaloAltanFool, pressed our community to pounce on some second -quarter softness:

One weak quarter is no reason for a business to drop 20% in a couple minutes. Akamai has a pretty deep moat in that companies are often unwilling to go with a smaller, less-reliable [content delivery network]. Akamai is more or less the industry standard. I see growth prospects, I see a moat, I see a depressed price.

Akamai is already up 37% since that call. In fact, yesterday's double-digit popcame after the company's third-quarter profit slipped 2% and stillmanaged to blow out expectations -- consistent with PaloAltanFool's bargain-based reasoning.

The bullish lesson?
Learn to be long-term greedywhen others are short-term fearful. Going against the herd is never easy, but if you truly believe in a company's long-runearnings power, massive panic sell-offs can offer the very bestpoints of entry .As Warren Buffettreminds us, "Only for short-term investors and market timers is a correction not an opportunity."

And now for the losers ...
Of course, winning isn't everything in the stock market.

Here are five of Thursday's biggest decliners with one- or two-star ratings:  

Company

Yesterday's Loss

First Solar (Nasdaq: FSLR)

16.57%

Strayer Education Continued...

1 2
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About The Author

Brian D. Pacampara is an investment expert and analyst for the Motley Fool.

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