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Short Idea: 8 Rallying Stocks With High RiskGrade Ratings

Posted
3/17/2011 1:27:00 PM
By: Kapitall
Referenced Stocks:CIGX;CPST;EXK;HERO;IPGP;SHS;VIAS;WNR

The following is a list of stocks in rally mode, i.e. trading above the 20-day, 50-day and 200-day moving averages.

All of these stocks have high levels of risk, as defined by the RiskGrade ratings developed by the RiskMetrics Group. RiskGrades is calibrated to be more intuitive and easier to use than standard deviation or beta. According to the company, their rating system captures all the components of market risk: equity, interest rate, currency, and commodity risk.

The lower the RiskGrade rating, the lower the risk level of the stock. Star Scientific (CIGX), the first company in our list, has a RiskGrade rating of 556, which means that it is less risky than 27% of tickers on U.S. markets and potentially riskier than 70% of the tickers of the same market.

We're not going to go into detailed analysis for each company. The goal here is to give a starting point for short sellers looking to profit from some of these rallying stocks. Full details below.

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1. Access a thorough description of all companies mentioned

2. Compare analyst ratings for all stocks mentioned below 

3. Visualize market cap changes for the top stocks mentioned

List Sorted by RiskGrade.

1. Star Scientific, Inc. (CIGX): Cigarettes Industry. Market cap of $351.33M. The stock is currently trading 38.26% above its 20-day MA, 51.21% above its 50-day MA, and 57.24% above its 200-day MA. RiskGrade 556. The stock is a short squeeze candidate, with a short float at 13.97% (equivalent to 5.72 days of average volume). Exhibiting strong upside momentum--currently trading 38.26% above its SMA20, 51.21% above its SMA50, and 57.24% above its SMA200. The stock has had a couple of great days, gaining 43.41% over the last week.

2. IPG Photonics Corporation (IPGP): Semiconductor - Integrated Circuits Industry. Market cap of $2.46B. The stock is currently trading 1.35% above its 20-day MA, 27.93% above its 50-day MA, and 99.3% above its 200-day MA. RiskGrade 417. It's been a rough couple of days for the stock, losing 6.93% over the last week. The stock has had a good month, gaining 13.02%.

3. Sauer-Danfoss Inc. (SHS): Diversified Machinery Industry. Market cap of $2.12B. The stock is currently trading 23.98% above its 20-day MA, 35.4% above its 50-day MA, and 86.53% above its 200-day MA. RiskGrade 403. Might be undervalued at current levels, with a PEG ratio at 0.71, and P/FCF ratio at 8.72. Exhibiting strong upside momentum--currently trading 23.98% above its SMA20, 35.4% above its SMA50, and 86.53% above its SMA200. The stock has had a couple of great days, gaining 5.47% over the last week.

4. Hercules Offshore, Inc. (HERO): Oil & Gas Drilling & Exploration Industry. Market cap of $659.99M. The stock is currently trading 3.3% above its 20-day MA, 26.78% above its 50-day MA, and 75.19% above its 200-day MA. RiskGrade 391. This is a risky stock that is significantly more volatile than the overall market (beta = 3.06). The stock has had a couple of great days, gaining 6.48% over the last week.

5. Viasystems Group Inc. (VIAS): Printed Circuit Boards Industry. Market cap of $476.78M. The stock is currently trading 14.07% above its 20-day MA, 31.19% above its 50-day MA, and 60.11% above its 200-day MA. RiskGrade 377. Exhibiting strong upside momentum--currently trading 14.07% above its SMA20, 31.19% above its SMA50, and 60.11% above its SMA200. The stock has had a good month, gaining 31.92%.

6. Endeavour Silver Corp. (EXK): Silver Industry. Market cap of $593.64M. The stock is currently trading 2.87% above its 20-day MA, 17.55% above its 50-day MA, and 62.58% above its 200-day MA. RiskGrade 357. It's been a rough couple of days for the stock, losing 14.89% over the last week. The stock has had a good month, gaining 25.33%.

7. Western Refining Inc. (WNR):
Oil & Gas Refining & Marketing Industry. Market cap of $1.46B. The stock is currently trading 1.7% above its 20-day MA, 18.97% above its 50-day MA, and 100.38% above its 200-day MA. RiskGrade 356. Relatively low correlation to the market (beta = 0.68), which may be appealing to risk averse investors. The stock has had a couple of great days, gaining 10.01% over the last week.

8. Capstone Turbine Corp. (CPST): Industrial Electrical Equipment Industry. Market cap of $408.33M. The stock is currently trading 11.11% above its 20-day MA, 27.54% above its 50-day MA, and 76.53% above its 200-day MA. RiskGrade 353. The stock is a short squeeze candidate, with a short float at 13.88% (equivalent to 7.89 days of average volume). Exhibiting strong upside momentum--currently trading 11.11% above its SMA20, 27.54% above its SMA50, and 76.53% above its SMA200. It's been a rough couple of days for the stock, losing 5.68% over the last week.

RiskGrades sourced from RiskMetrics group, all other data sourced from Finviz. Data sourced on March 15th.