Tuesday, December 15, 2009
Brian D. Pacampara :: Townhall.com Columnist
Monday's Biggest Stock Stars
by Brian D. Pacampara
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Hey there, Fools. I've summoned our Motley Fool CAPScommunity once again to highlight a few of Monday's biggest winners among the stocks with top ratingsof four or five stars:

Company

Yesterday's Gain

XTO Energy (NYSE: XTO)

15.35%

Clean Energy Fuels

8.98%

Titanium Metals

6.24%

Chesapeake Energy (NYSE: CHK)

5.82%

Philip Morris International (NYSE: PM)

3.67%

There's a reason I selected those notable gainers, as opposed to other winners making noise on Monday, like low-rated Sun Microsystems (Nasdaq: JAVA). Stocks go up all the time, but unless you were able to predict the pop, what does it matter?  

Our community of more than 145,000 CAPS Fools considers its high-star stocks the most likely to outperform the market.

Written in the (five) stars?
For example, 98.4% of the 2,381 members who've rated XTOhave a bullish opinion of the stock. Early this year, one of those Fools, wolfhounds, explained why the natural gas producer's price weakness presented a prime opportunity to pounce:

I'm a buyer of this stock today after reading the 10-K and disregarding the market's knee jerk reaction. In case you can't get to it, the gist is this. Despite dramatic falls in energy prices, XTO had substantial increase in cash flow and production while adding valuable reserves which will bode well into the future.

Consistent with that call, shares of XTO surged yesterdayafter oil behemoth ExxonMobil (NYSE: XOM) agreed to acquire the company for $41 billion, including taking on XTO's $10 billion in debt, in a huge move to capitalize on rapidly increasing domestic natural gas reserves.

The bullish lesson?
Learn to think like a business owner, not a stock trader. All sorts of noise can depress a stock's price in the short-term, but true investors focus on the factors that reallycount over time. As CAPS' wolfhounds understands, by gobbling up attractive assets at severely depressed prices, you give yourself plenty of "upside" opportunities -- including getting bought by one of the big boys -- to earn an outsized return.

And now for the losers ...
Of course, winning isn't everything in the stock market.

Here are five of Monday's biggest decliners with one- or two-star ratings:  

Company

Yesterday's Loss

MBIA (NYSE: MBI)

7.63%

Citigroup (NYSE: C) Continued...

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About The Author

Brian D. Pacampara is an investment expert and analyst for the Motley Fool.

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