Stocks sell off for a reason. Sometimes a stock price declines because the market has efficiently digested new information and appropriately discounted its value. And, sometimes a stock price spikes downward because people panic.
As a group, stocks given the maximum rating of five stars by the 115,000-plus-member Motley Fool CAPS community have had a stellar record. But, not every five-star stock pans out, and some travel a turbulent road to good performance.
So let's examine some five-star stocks with large price declines over the past month. We'll look at some reasons for the decline to see if these battered stocks are worth their stars.
Here are the past month's battered prospects:
Company
CAPS rating
30-day decline
Metalico (AMEX: MEA)
*****
(56.8%)
Qiao Xing Mobile (NYSE: QXM)
(48.2%)
Melco Crown Entertainment . (Nasdaq: MPEL)
(43%)
Xinyuan Real Estate (NYSE: XIN)
(41.9%) Continued...
Tom Hutchinson is a Motley Fool contributor.
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