Some companies are obviously great investments -- in
hindsight. Yet for every stock out there screaming "
buy me," others simply give us a nudge and a nod. How can
we tell tomorrow's obviously great investments from the
thousands of pretenders?
The stars' walk of fame
On
Motley Fool CAPS, these opportunities can be found among
our four-star stocks. In CAPS'
proprietary ratings system, they rank higher than most
of the other 5,300 rated companies, but they're
just shy of superstardom. While all the attention might be
focused on their five-star peers, we can sift
through CAPS to find four-star companies approaching
greatness. Here are a handful of four-star
companies approaching greatness.
Brigham Exploration (Nasdaq: BEXP)
Coca-Cola (NYSE:KO)
Elan (NYSE: ELN)
Hansen Natural (Nasdaq: HANS)
Mahindra Satyam (NYSE: SAY)
Some of these names might surprise you. Soda giant
Coca-Cola,
for example, has tickled our noses with its carbonated
beverages for more than 100 years.
Almostgreat? Even familiar names can offer some of
the best opportunities. Perhaps we've just forgotten the
potential they still hold. However, the 140,000-member CAPS
community chose these companies as
less obvious sources for tomorrow's great buysso let's
see why they might merit your attention.
In the sight of greatness?
Pharmaceuticals giant
Johnson & Johnson 's (NYSE: JNJ) taking
an 18% stake in
Elanserves
as something of an endorsement for the biotech to
rediscover its growth plans. As CAPS member
latimerburnednoted, Elan will now be able to focus
exclusively on its drugs:
They have taken away a lot of the financial risk with
the [J&J] deal so now its all about Tysabri and
Alzheimers. I think that the benefits of Ty outweigh the
risks as they are learning how to manage the drug so this
one should do very well.
Well, apparently they're going to need to do just that
because
the SEC wants more informationabout certain data
concerning it and
Biogen Idec 's MS drug, Tysabri, and its
Alzheimer's investigative drug, bapineuzumab. The agency
wants to look further into Elan's July statement that there
were two additional cases of a deadly brain disease in
patients using Tysabri, as well as some phase 2 trial data
from bapineuzumab.
Despite the risks, there are
many reasons to be invested in Elanand its drug Tysabri,
and though competition will be upon them soon enough, there
are more than a few smart Fools who see the
Motley Fool Rule Breakersrecommendation as being the
strongest biotech to lead them.
Time to bulk up
Another
Rule Breakersselection that's making its mark is
beverage maker
Hansen
Natural. After a string of quarterly losses, the Monster
Energy drink mixer recorded a profit that has seen shares
surge more than 28% over the past three months. Analysts,
though, are hedging their bets, believing it's unlikely to
ramp up domestic sales sharply enough to justify the
valuation Wall Street has placed on the stock.
That may be shortsighted.
Using the distribution networksof both
Coca-Cola Enterprises and
Anheuser-Busch InBev , Hansen's products have
been getting the shelf space they need to grow sales. While
analysts may have wanted stronger volume and revenue growth
from domestic markets,
the increases Hansen achievedcame about while
PepsiCo (NYSE: PEP) and Coke watched their
energy-drink sales fall. Continued... |