10 stocks rocketing into fall
This post comes from Rich Duprey at partner site The Motley Fool.
Some stocks are one-hit wonders, making a big splash when they first appear before quickly fading into obscurity. But for other stocks, that initial run-up is merely a preview of bigger and better gains to come.
Today, we’ve compiled a list of 10 stocks that spiked in August. We then paired the names with the ratings for each company issued by the MSN CAPS community. The higher each stock’s rating, the greater CAPS members’ faith in the company’s ability to continue beating the market.
We’re looking for stocks that might stay hot as the summer winds downs.
Here’s our list:
Rentech (RTK) rose 300% in August. The company produces nitrogen fertilizer and has technology that converts underutilized energy resources into fuels and other chemicals. At CAPS, the Los Angeles company has a two-star rating.
Radian Group (RDN) ratcheted up 175% last month. The Philadelphia company provides mortgage insurance to protect lenders from borrowers who put down less than 20% when buying a home. At CAPS, the stock has a one-star rating.
Sinovac Biotech (SVA) soared 107% in August. The Beijing company develops and produces vaccines to combat influenza and other infectious illnesses. The stock has a three-star rating at CAPS.
CIT Group (CIT) doubled in August but has since given up nearly all of those gains. The New York company offers lending, leasing and advisory services to small and midsized businesses. At CAPS, the stock has a two-star rating.
KKR Financial Holdings (KFN) climbed 89% last month. The San Francisco company invests in corporate loans and securities, as well as other financial assets. The stock has a three-star rating at CAPS.
Conexant Systems (CNXT) soared 82% in August. The Newport Beach, Calif., company provides communications chips for fax machines and other communications devices. At CAPS, the stock has a three-star rating.
Eastman Kodak (EK) added 79% last month. The Rochester, N.Y., provider of photographic equipment has a one-star rating at CAPS.
Macquarie Infrastructure (MIC) marched up 60% in August. The unit of Australia’s Macquarie Bank provides aircraft fueling and storage at about 70 U.S. airports, and has interests in bulk storage and other projects. At CAPS, the stock has a four-star rating.
YRC Worldwide (YRCW) rose 59% last month. The nation’s largest trucking company has a two-star rating at CAPS.
Citigroup (C) was up 58% in August. The banking giant has a two-star rating at CAPS.
Let’s see whether the CAPS community thinks one of these companies –YRC Worldwide — can continue to outperform the market.
Rolling and reeling
Trucking giant YRC Worldwide has been losing customers as it fights to avoid a bankruptcy filing. The stock jumped late last month on news that the company reached an agreement to amend its $950 million credit facility.
The company, which owns the trucking names Roadway, Yellow and New Penn, has been forced by the recession to cut wages, lay off workers and alter credit agreements. But these are stopgap measures that can’t fundamentally alter its precarious financial position or lift the broader trucking industry out of its severe depression.
The economic downturn could be bottoming out. The American Trucking Association said the July tonnage index showed a 2.1% increase from the month before, but it’s still off more than 10% from a year ago. But even its chief economist notes that there’s nothing to suggest there will be a significant upturn in the numbers anytime soon, meaning financially troubled truckers like YRC may yet be destined for failure.
CAPS All-Star “superdave1979″ sees the end of the road coming sooner rather than later:
“The writing is on the wall for YRC. The whole industry has smelled blood for awhile and steadily taken away business from YRC,” superdave1979 wrote. “They have to keep pushing out their debt covenants, because they can’t meet them. The recent union concessions are too little, too late. They should be in bankruptcy by the end of the year, if not before.”
But what’s your opinion? Do you agree with superdave1979 that YRC is running on fumes, or can the trucker turn things around? Click on over to CAPS and tell us what you think.
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