Last week, CNBC featured some members of the thousand percent club, or those stocks that have gained over ten times their value since the March low. I know from surfing thousands of charts per week that many stocks have indeed posted incredible gains, but I was interested in finding out approximately how many companies could claim membership in this exclusive 1000% club.
To that end, I discovered 34 thousand percenters that are trading over a buck and listed on major exchanges. In fact, with the exception of Fredrick’s of Hollywood (FOH) that is listed on the AMEX, the rest all reside on the Nasdaq or the NYSE.
The chart below lists them all sorted according to industry grouping - click to enlarge:
Note: RL denotes Resistance Level.
The biggest gainer is Dietrich Coffee (DDRX) at over 6700%. Management deserves a gold medal for dumping many of its retail outlets and focusing on its wholesale business which has been going gangbusters.
Avis (CAR) must really be trying harder because it and Dollar (DTG) are the 1000% club runners-up. (Hertz (HTZ) is “only” up 500%). The economic factors that caused these companies’ stock prices to collapse have shifted into reverse which, according to a recent MSN Money article, is the reason for their recent gains.
Riding the coattails of the auto industry are the parts suppliers. Because of their strong balance sheets and ability to diversify operations during the recession, several of them were recently upgraded, including Arvinmeritor (ARM) and TRW (TRW).
Representing the largest industry group in the 1000% club are niche biotechs that have had successful clinical trials on key drugs. It’s no surprise that Biocryst (BCRX), a manufacturer of swine flu therapies, made the list.
Is there still some game left in these gals?
These stocks have come so far so fast that one might expect them to run out of steam. But considering where these stocks were trading pre-market swoon, there’s still a lot of room for growth. As an extreme example, consider Cell Therapeutics (CTIC) which once traded over $3000 (in 2000) and is now trading for less than $2!
Should the market reverse course, these stocks could very well be the ones to suffer first considering their recent run-up. But if the market continues behaving bullishly, many could still offer significant gains. You’ll have to do your own due diligence on this one and as an aid, I’ve included the next resistance levels based on weekly and monthly charts to help you with price targeting. (These are general guidelines only!) I’ve also included their Zacks ranking (with the 1 and 2 ratings reserved for the healthiest companies) for further reference. Only Oriental Financial (OFG) earned the Zacks highest position. It recently posted its eighth consecutive earnings surprise and despite its latest run-up, it’s trading at only four times forward earnings. Zacks recently added it to their value portfolio.
On a personal note, I’m glad to see Fredrick’s of Hollywood (FOH) busting out. (Oh, you knew that was coming!) The company recently hired a former Walmart executive as veep of product development. I sincerely hope she can breathe new life into their product line as the company’s aging business model could use a good kick in the pants.