AOL Money & Finance

rbcn posts

Feed

BusinessWeek picks stocks that could double

Most of us would be thrilled to invest in a stock that doubles our money, but it certainly isn't easy to find these stocks. According to data provider Capital IQ, in the last year only 1.4% of 6,700 stocks trading on the U.S. exchanges were able to double their price.

BusinessWeek started hunting some of these potentially great stocks by asking fund managers to choose those firms expected to provide 100% returns in the next few years. Of course, the resulting list is by no means a sure thing, since major factors such as the ongoing credit crisis and challenging market conditions could affect results in unpredictable ways.

But let's look at some of the strategies used when picking high-potential stocks.

Mary Lisanti, portfolio manager at the Adams Harkness Small Cap Growth Fund, focuses on young companies in the small-cap segment. She points to stocks like Rubicon Technology (NASDAQ: RBCN) and Titan Machinery Inc. (NASDAQ: TITN), saying that investors can have a big advantage when they recognize potential before the market does.

Continue reading BusinessWeek picks stocks that could double

Analyst initiations: SPWR, ESLR and ABT

MOST NOTEWORTHY: SunPower, Evergreen Solar and Abbott Lab were today's noteworthy initiations:
  • Citigroup believes SunPower (NASDAQ: SPWR) is faced with high cell production costs, its silicon cost and installation cost advantages are increasingly commoditized and finds the risk/reward even at current levels. Shares were initiated with a Hold rating and $105 target.
  • Citigroup believes Evergreen Solar (NASDAQ: ESLR) faces significant financing requirements over the next few years, making it difficult to see a sustained period of EPS growth beyond the $1 range. The firm sees downside to $5/share. Shares were assumed with a Sell rating and $8 target.
  • UBS started Abbott Lab (NYSE: ABT) with a Buy rating and $61 target. The firm is positive on Humira potential growth and expects Xience to drive vascular operating margins to positive.
OTHER INITIATIONS:

Analyst upgrades, downgrades and initiations

MOST NOTEWORTHY UPGRADES:

  • Potash Corp. (NYSE: POT) was upgraded to Buy from Neutral at Goldman based on the company's unprecedented sustainable pricing power.
MOST NOTEWORTHY DOWNGRADES:

MOST NOTEWORTHY INITIATIONS:

  • Credit Suisse believes Willbros Group Inc. (NYSE: WG) is well-positioned to capitalize on increased pipeline construction. The firm started shares with an Outperform rating and $46 target.
  • CIBC, which said Rubicon Tech (NASDAQ: RBCN) is the leading sapphire supplier with the most advanced and highest quality substrate, views the company as uniquely positioned to leverage fast ramping LED volumes as new applications drive demand. CIBC initiated Rubicon with a Sector Outperformer rating and $23 target.
  • Citigroup initiated El Paso Pipeline (NYSE: EPB) with a Buy rating and $28 target.
  • Keefe Bruyette initiated Mercer Insurance (NASDAQ: MIGP) with a Market Perform rating and $19 target.
  • Internet Brands (NASDAQ: INET) was initiated with an Overweight rating and $14 target at Thomas Weisel.

Symbol Lookup
IndexesChangePrice
DJIA+20.0310,246.97
NASDAQ-2.982,151.08
S&P 500-0.071,093.01

Last updated: November 10, 2009: 04:37 PM

BloggingStocks Exclusives

Hot Stocks

DailyFinance Headlines

Latest from BloggingBuyouts

WalletPop Headlines

AOL Business News

BioHealth Investor Headlines

Sponsored Links

My Portfolios

Track your stocks here!

Find out why more people track their portfolios on AOL Money & Finance then anywhere else.

BloggingStocks Partners

More from AOL Money & Finance