Short-sellers and hedge funds may be shadowy, but sometimes they are the smartest guys in the room. They've done their homework, and they're willing to bet their capital against the crowd -- an investing strategy that can be as lucrative as it is contrarian.
On Motley Fool CAPS, we've also got leading analysts who find the chinks in a company's armor and correctly call its fall. Our "Underdogs" have earned 100 or more CAPS points by correctly predicting that one or more stocks would underperform the market.
Let's look at some of the recent calls these All-Star investors have made. Instead of studying more of their pessimistic picks, we'll focus on the stocks these top members expect will outperformthe market. If these CAPS investors have scored big by correctly predicting which stocks will fail, it may be worth our while to see which others they think will succeed.
Underdog
Member Rating
Company
CAPS Rating (out of 5)
EV38
99.94
LDK Solar (NYSE: LDK)
***
RayNobleEsq
99.88
STEC (Nasdaq: STEC)
**
urmoney
99.56
Allos Therapeutics (Nasdaq: ALTH)
****
jimrausch
99.40
Sunrise Senior Living (NYSE: SRZ)
** Continued...
Rich Duprey is a writer specializing in the stock market.
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