Monday, 1 February 2010

Stock Focus

Stock Focus: I did a stock screen to find the companies who had risen the most from the March Lows. I am talking about the absolute best performers from the bottom. Surprisingly or not surprisingly, depending on your view, the best performers come from the absolute worst industries. It has been a dash for trash. One stock in particular is among the best performers. It is up 5,000%! Wow. Dan Holding Corp. (DAN) rallied from 19 cents to its Friday close last week of $10.31. It is in the automotive/truck equipment group which is a horrible group to be in because they are tied directly to the big carmakers, but the stock has vaulted off the lows. Maybe some of the larger players see something there, so it’s worth taking a look at. I think it’s a speculative play but some of the best performing stocks were penny stocks at one time. (e.g. Guess, it went down to below $2 twice in the late 90s and early 00s before skyrocketing up). I personally don’t think the future prospects are all that good for DAN, but things change. So it’s one that I will be keeping an eye on.

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