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Monday, November 16, 2009
Rich Smith :: Townhall.com Columnist
Rocket Stock or Dud?
by Rich Smith
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Poll
Do you feel the leaked information from a global warming alarmist organization is meaningful?



"The bigger they are, the harder they fall." It's the worst nightmare of every investor in today's market: buying a rocket stock just before it takes a nosedive.

Now I readily admit that sometimes, stocks rise for a reason. But sometimes, the rise becomesthe reason. No matter how often we caution them not to, investors do have a habit of buying "hot" stocks, and trusting momentum to keep 'em moving upwards.

Problem is, if the price goes up too much, even a great company can turn into a lousy investment. Below I list a few stocks that may have done just that. Stocks that, according to the smart folks at finviz.com, have more than doubled since the beginning of this year, and just might be ripe to fall back to earth.

 

Stock

Recent Price

CAPS Rating
(out of 5)

Infosys Technologies  (Nasdaq: INFY)

$50.87

****

Goodyear Tire (NYSE: GT)

$14.34

**

XL Capital  (NYSE: XL)

$17.45

**

Interoil (NYSE: IOC)

$51.72

*

Priceline.com  (Nasdaq: PCLN)

$201.93

* Continued...
1 2
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About The Author

Rich Smith is a business writer with the Motley Fool.

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