The following seven stocks are the overall strongest performing stocks based on 52 week price performance. Each of these stocks is up more than 300% over the last 52 weeks. It may seem obvious to simply jump on these juggernauts and enjoy the ride... If only it were that easy!
Many questions need to be answered before putting assets at risk. Have we missed the move completely or is this the first leg of an extended rally? Should we wait for the steam to evaporate and the stock to simmer down before opening a position? After parabolic moves, most stocks rest or retreat up to 10% or more before continuing upward (If they ever do). Has the stock run into the stratosphere and, even with the positive catalyst, is it overvalued and exhibiting bubble like characteristics? This leaves us with quite a conundrum. We all know that past performance is not a surefire indicator of future success. On the other hand, these stocks are performing extremely well and could provide substantial returns.
Therefore, to separate the pretenders from the contenders, let’s take a closer look to distinguish the driving forces behind these remarkable moves and ensure the stories are intact.
Below is a table with detailed information regarding company’s sector, industry, price performance, market cap, and S&P Star rating followed by a brief analysis of each company. Please use this information as a starting point for your own due diligence.
Company Summary Information
Click to enlarge Click to enlarge
Company Current Events and Statistics
Flotek Industries, Inc. (FTK)
- Supplies drilling and production related products and services to the energy and mining industries in the United States and internationally
. FTK is a leading provider of a portfolio of innovative oilfield technologies including specialty chemicals
, drilling products and artificial lift services. These are in continuing great demand based on the recent innovations in drilling that have opened the North American unconventional shale plays to exploitation by major Oil & Gas companies. With the recent possible legislation regarding the regulation of fracking fluids, FTK “green” fluid could be in even greater demand. Recently, the company has regained compliance with the NYSE's quantitative continued listing standards. As of March 25, FTK’s common stock closed at $8.28 per share, providing a market capitalization of over $356 million. The notice stated that the decision came as a result of Flotek’s consistent, positive performance with respect to the original business plan submission. I see no stopping this stock. Although I would wait for a pull back to start a position. Please review the illustration for FTK’s summary and key statistics.
Universal Display Corporation (PANL) - Engages in developing and delivering organic light emitting device technologies, materials, and services to the display and lighting industries.
PANL recently announced the completion of its public offering of 5,750,000 shares of its common stock at $46.00 per share. This includes 750,000 shares issued pursuant to the exercise in full by the underwriters of an option to purchase additional shares to cover over-allotments. The net proceeds from this offering, before offering expenses, are $249,952,500, reflecting the exercise of the over-allotment option. The proceeds of the offering will be used for general corporate purposes, including the acquisition, development and license of properties, assets, entities or technologies.
PANL was recently awarded $4 million contract from the U.S. Department of Energy to support establishment of an OLED lighting pilot manufacturing facility in the U.S. PANL’s PHOLED material business recently received ISO 9001:2008 certification. For the full year of 2010, the Company reported revenues of $30,544,380, compared to revenues of $15,786,617 for 2009. Commercial revenue for 2010 was $11,129,747, compared to $6,118,099 for 2009. Developmental revenue for 2010 was $19,414,633, compared to $9,668,518 for 2009. Increases in both commercial and developmental revenues primarily reflect increased chemical sales. Mr. Rosenblatt concluded:
“With revenues for the year almost doubling, fiscal 2010 may well be regarded as the year PHOLED technology officially migrated out of the laboratory and into the lives of millions of consumers. The appetite for bright, beautiful and more energy efficient and environmentally friendly displays is creating strong demand for the use of OLEDs in a variety of applications. In 2011, manufacturers are expected to add capacity, enabling this technology to be enjoyed more widely by consumers everywhere. To further leverage our extensive intellectual property assets and create value for our shareholders, we are actively pursuing opportunities in the small and large format display markets, as well as the general lighting market where our technology can demonstrably improve OLED performance and efficiency.”
The drawback with this stock is that the company is not yet profitable. According to yahoo Finance it lost approximately $20 million in 2010, which is on par with results for 2009 and 2008. Going to keep this in the pretender category for now and see if it makes good on the positive statements. Please review the illustration for PANL’s summary and key statistics.
Travelzoo Inc. (TZOO) - An Internet media company, publishes travel and entertainment offers from various travel and entertainment companies in North America and Europe.
TZOO recently announced it now has 22 million subscribers worldwide. Since the beginning of the year, Travelzoo added 540,000 net unique subscribers in Europe and North America. “The rate at which new subscribers have joined Travelzoo since the beginning of the year has accelerated significantly. In a number of markets, we are on track to set new records for quarterly subscriber gains,” said Chris Loughlin, TZOO CEO.
Travelzoo has also been extending the reach of local deals. TZOO is now a publication that recommends deals for local high-quality spas, restaurants and experiences. Travelzoo subscribers in more than 30 cities across four countries now receive local deals. The “local deals” service has launched in Atlanta, Georgia; Munich, Germany; and Manchester, England. Additionally, TZOO recently surpassed 5 million unique subscribers to its publications in Europe. In the first eight weeks of 2011, Travelzoo added 414,671 net new subscribers in Europe. This is the fastest subscriber growth rate the company has seen since it started operations in the continent in May 2005. Chris Loughlin, CEO of Travelzoo said, “It’s extremely fulfilling for all of us at Travelzoo to surpass this milestone of 5 million subscribers in Europe. Travelzoo was founded on the fundamental belief that honest recommendations about outstanding deals at top-notch businesses will attract a large and high-quality subscriber base. Surpassing the 5 million mark emboldens us and reinforces our belief that in the long run, quality leadership is key to our success.”
On Apr 8, 2011 Morgan Keegan Initiated coverage on the stock at Mkt Perform. Currrently, TZOO has a TTM P/E of 93 and a forwars P/E of 49, which is improving although still higher than the industry average. Travel stocks are in vogue, having surged recently due to the Expedia (NASDAQ:EXPE
) split announcement. This story has legs, TZOO is making money and has significant bottom line growth. I would wait for the dust to settle somewhat and look for an entry point if the stock has a pullback of at least 5%. Please review the illustration for TZOO
’s summary and key statistics
VirnetX Holding Corporation (VHC) - Engages in developing and commercializing software and technology solutions for securing real-time communications over the Internet.
Over the past two weeks the stock has more than doubled from the $13 range. The company recently announced it has submitted a Statement of Patent Holder with the Alliance for Telecommunications Industry Standards ((ATIS)) and European Telecommunications Standards Institute, supplementing its prior statement of December 1, 2009, identifying patents and patent applications that may be relevant to the following specifications in the 3GPP LTE, SAE project. The 3GPP LTE project is responsible for setting standards for the next Generation 4G networks. VirnetX contends its patents may be requisite for some of the 4G LTE security specifications. Its assertion of foundational IP could result in a windfall of profits regarding licensing fees for the foreseeable future.
VirnetX also recently announced the award of a new patent which it is including in its current litigation and this includes Apple's (NASDAQ:AAPL) products
. The notion of the company receiving royalties on all next generation smartphones made for 4G cellular networks is gaining acceptance by investors
. The stock has had a significant run since ViHC updated its patent protection plan in March
. VHC is trading approximately 75% above its 50 day moving average of 15.68. The company is experiencing exponential YOY net income growth going from losing $12 million in 2009 to making $41 million in 2010. VHC is definitely a contender, nonetheless, I would look for an entry point somewhat closer to the 50 day moving average. Legal disputes are long drawn out affairs with many ups and downs. Please review the illustration for VHC
’s summary and key statistics
IDT Corporation (IDT) - Operates as a telecommunications and energy company. It operates in three segments: Telecom Platform Services, Consumer Phone Services, and Genie Energy.
Regarding IDT’s recent financial results, IDT's Chief Financial Officer, Bill Pereira said,
"We grew net income by 6% year-over-year and generated over $23 million in cash from operating activities in 2Q11. IDT also further strengthened its balance sheet and enhanced its liquidity, even while paying $10 million in dividends. Cash, cash equivalents and certificates of deposit - increased to $262.8 million from $242.7 million at the close of the prior quarter. We also continued to execute on several important initiatives to increase shareholder value including the spin-off to shareholders of both our VoIP related intellectual property and our Genie Energy division. We expect to complete both spin-offs during calendar 2011."
IDT reported $262.8 million of cash, cash equivalents and certificates of deposit, including $6.9 million of restricted cash and cash equivalents. Current assets totaled $435.7 million, and current liabilities totaled $313.9 million. Non-current liabilities totaled $46.5 million. Howard Jonas, IDT's Chairman and CEO, said,
"IDT Telecom had an outstanding quarter with strong growth in minutes, revenue, gross profit and Adjusted EBITDA generated by our core TPS segment. At IDT Energy, we continued to expand into new territories despite an increase in electric prices, which pressured margins downward this quarter. In the longer term, these new markets are a great growth opportunity and we have the flexibility to protect against future commodity cost increases by hedging some of our naturally short position."
IDT Corporation recently announced that its stockholders approved an amendment to its certificate of incorporation automatically converting and reclassifying each outstanding share of its Common Stock NYSE:IDT.C into one share of its Class B Common Stock NYSE:IDT. In connection with the amendment, the company also said it will delist its Common Stock from the New York Stock Exchange and deregister and suspend its reporting obligations with respect to its Common Stock under the Securities Exchange Act of 1934, as amended, and the rules and regulations thereunder. IDT Corporation’s Class B Common Stock will remain listed on the NYSE under the same “IDT” ticker symbol and will be the Company’s only publicly traded stock.
By virtue of the ownership and NYSE
-listing of its Class B Common Stock
, the Company will remain subject to the reporting obligations under the Exchange Act
. This move simplifies our capital structure
,” said Howard Jonas
, Chairman and Chief Executive Officer of IDT
. “It is one of a series of steps we are taking to make IDT a more transparent and easily understood company
.” The company offers a dividend yield of 3.16
%. The company has gone from losing $155 million in 2009 to making $20 million in 2010. VHC is trading at three times book value, This stock is definitely a contender. I would scale into a position at these levels. Please review the illustration for IDT
’s summary and key statistics
Sauer-Danfoss Inc. (SHS)
, and markets hydraulic
, and mechanical components
, as well as software and integrated systems that generate
, and control power in mobile equipment
-Danfoss took off after the maker of mobile hydraulic systems posted better than expected quarterly results
. A sharp profit reversed a year
-ago loss on a 54
% surge in revenue
. A healthy order backlog finds the company expecting to earn as much as
$4 a share this year
. Shares of SHS were significantly higher after quarterly results and full
-year forecast exceeded estimates
. Revenue was higher by 54 percent
, and fourth
-quarter profit was
$2.60 per share
, versus a loss of
$1.55 per share
, in the same period last year
. Sales increased in all three regions in which it operates
. The stock is higher by over 30 percent in the near term
. I would wait for a pull back of at least 5% prior to starting a position. The company's story is intact, but the stock is due for a pull back or at least a resting phase. Please review the illustration for SHS
’s summary and key statistics
Kronos Worldwide, Inc. (KRO) - Engages in the production and marketing of titanium dioxide pigments in North America and Europe. The titanium dioxide pigments are used to impart whiteness, brightness, and opacity for products, such as coatings, plastics, papers, fibers, food, ceramics, and cosmetics.
Steven L. Watson, Vice Chairman and Chief Executive Officer, said,
"We saw significant improvement in our business and the TiO2 industry during 2010. Worldwide demand for our TiO2 products continued to strengthen and our manufacturing facilities successfully operated at near full practical capacity utilization levels, allowing us to achieve new historic records for both sales and production volumes. With favorable industry dynamics, we were able to implement significant increases in our TiO2 selling prices that resulted in increased profitability and cash flows. We continue to believe that profit margins are still significantly lower than necessary to reasonably justify green-field or other major expansions of TiO2 production capacity. Assuming demand for TiO2 products remains strong, we expect the worldwide shortage will continue beyond 2011, and we expect to implement additional increases in our TiO2 selling prices. As a result, we believe we will report additional improvements in our operating and financial performance in 2011 and the foreseeable future as compared to 2010."
KRO appears to have high momentum, recently soaring to a new multi-year high on one more strong quarter of earnings. Due to a recent upsurge in estimates and optimistic growth forecasts, the stock is exhibiting robust qualities. Revenue for the current period was up 16% from last year to $263 million. Earnings were impressive, topping consensus estimates at 66 cents per share. KRO has had an average earnings surprise of 71% over the last four quarters. KRO stated that its good quarter and strong year were driven by a combination of higher prices and increased volume on strong demand out of Europe.
Kronos has used its recent earnings momentum to fortify its balance sheet. Cash and equivalents were up $274 million from last year to $307 million. Total debt fell $73 million to $540 million. Guidance was increased for the current year by 93 cents to $4.37. 2012 estimates were raised by $1.24, rising to $5.76, a 32% growth forecast. KRO’s valuation appears intact, with a forward P/E of 13X. KRO looks solid here. Please review the illustration for KRO’s summary and key statistics.
These seven stocks are the overall strongest performing stocks based on 52 week price performance. Each of these stocks is up more than 300% over the last 52 weeks. Furthermore, they are all well positioned to benefit from each of their respective sector's burgeoning demands spurred by numerous positive catalysts. I will continue monitoring these stocks further to determine the precise timing to create a position. Scaling in to the position over a period of time will reduce risk.
, I would suggest buying a basket of these high fliers rather than just one
, based on the speculative natural of investing in stocks with such recent significant moves
, if a stock has recently doubled
, it lowers the odds of the stocks doubling again in the near term considerably
, we have all seen the performance of stocks the likes of Priceline
) and Amazon (NASDAQ:AMZN), which have shot up more than 10 fold in recent years
. One of the greatest stock returns of all time was Warren Buffett
’s purchase of a stake in the Washington Post Company
). This one investment subsequently provided Buffett with more than a hundred fold return
Information was gathered from CNBC, Yahoo Finance, and respective company websites.
Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in FTK, TZOO, IDT, PANL, SHS, VHC, KRO over the next 72 hours.