Back to main

Kapitall Strategies: Top 10 Rallying Stocks For Your Watch List

Posted
8/22/2011 4:20:00 PM
By: Kapitall
Referenced Stocks:ACOM;ADSK;ANV;EGO;GOLD;IAG;MFN;MFW;NGD;OSK

(List compiled by Eben Esterhuizen, CFA)

Strategy: If a stock gains more than 3% since the previous close, buy it, and sell it on the close 10 trading sessions later.

But which of today's big winners might be good candidates for this strategy?

To help you get ideas, we started with a universe of about 200 stocks that have gained by more than 3% since the previous close (i.e. strategy candidates).

We went back in time, and evaluated how many times these stocks have rallied like this over the last quarter.

For each backtested rally strategy, we'll also report the average return made on the investment (ignoring transaction costs).

Recent history suggests that these stocks are exhibiting upward momentum, and may add to today's gains. That said, it's important to point out that past performance is no guarantee of future results.

In other words, just because these stocks gained from similar rallies over the last quarter, there is no guarantee that they will do so again today.

As always, use this list only as a starting point for your own analysis.

For each stock listed, we'll also include the annual performance.

Analyze These Ideas (Tools Will Open In A New Window)

1. Access a thorough description of all companies mentioned
2. Compare analyst ratings for all stocks mentioned below
3. Visualize annual returns for all stocks mentioned

1. Minefinders Corp. Ltd. (MFN): Industrial Metals & Minerals Industry. At time of writing (2:30pm ET), the stock is up 7.52% since yesterday's close. Over the last quarter, there have been 5 days when the stock gained more than 3% in a session. Trading the above mentioned strategy on those days would have returned an average of 8.96% over the next 10 trading days. The stock has returned 74.33% over the last year.

2. Eldorado Gold Corp. (EGO): Gold Industry. At time of writing (2:30pm ET), the stock is up 3.04% since yesterday's close. Over the last quarter, there have been 9 days when the stock gained more than 3% in a session. Trading the above mentioned strategy on those days would have returned an average of 8.4% over the next 10 trading days. The stock has returned 5.61% over the last year.

3. Ancestry.com Inc. (ACOM): Internet Information Providers Industry. At time of writing (2:30pm ET), the stock is up 3.87% since yesterday's close. Over the last quarter, there have been 2 days when the stock gained more than 3% in a session. Trading the above mentioned strategy on those days would have returned an average of 7.09% over the next 10 trading days. The stock has returned 47.67% over the last year.

4. Autodesk, Inc. (ADSK): Technical & System Software Industry. At time of writing (2:30pm ET), the stock is up 4.83% since yesterday's close. Over the last quarter, there have been 1 days when the stock gained more than 3% in a session. Trading the above mentioned strategy on those days would have returned an average of 6.29% over the next 10 trading days. The stock has returned -16.72% over the last year.

5. Randgold Resources Ltd. (GOLD): Gold Industry. At time of writing (2:30pm ET), the stock is up 3.52% since yesterday's close. Over the last quarter, there have been 4 days when the stock gained more than 3% in a session. Trading the above mentioned strategy on those days would have returned an average of 5.52% over the next 10 trading days. The stock has returned 21.67% over the last year.

6. Oshkosh Corporation (OSK): Trucks & Other Vehicles Industry. At time of writing (2:30pm ET), the stock is up 3.19% since yesterday's close. Over the last quarter, there have been 2 days when the stock gained more than 3% in a session. Trading the above mentioned strategy on those days would have returned an average of 5.27% over the next 10 trading days. The stock has returned -39.79% over the last year.

7. M&F Worldwide Corp. (MFW): Business Services Industry. At time of writing (2:30pm ET), the stock is up 3.32% since yesterday's close. Over the last quarter, there have been 1 days when the stock gained more than 3% in a session. Trading the above mentioned strategy on those days would have returned an average of 5.24% over the next 10 trading days. The stock has returned -14.57% over the last year.

8. Allied Nevada Gold Corp. (ANV): Gold Industry. At time of writing (2:30pm ET), the stock is up 4.8% since yesterday's close. Over the last quarter, there have been 8 days when the stock gained more than 3% in a session. Trading the above mentioned strategy on those days would have returned an average of 4.79% over the next 10 trading days. The stock has returned 80.95% over the last year.

9. IAMGOLD Corp. (IAG): Gold Industry. At time of writing (2:30pm ET), the stock is up 4.83% since yesterday's close. Over the last quarter, there have been 5 days when the stock gained more than 3% in a session. Trading the above mentioned strategy on those days would have returned an average of 4.59% over the next 10 trading days. The stock has returned 8.77% over the last year.

10. New Gold, Inc. (NGD): Nonmetallic Mineral Mining Industry. At time of writing (2:30pm ET), the stock is up 3.61% since yesterday's close. Over the last quarter, there have been 9 days when the stock gained more than 3% in a session. Trading the above mentioned strategy on those days would have returned an average of 4.59% over the next 10 trading days. The stock has returned 118.01% over the last year.