10 stocks that could double in 2008
Posted
Dec 16 2007, 05:30 PM
by
Douglas McIntyre
Rating:
It is hard to find stocks that could double in a fairly short period of time. It rarely happens with shares in really big companies. There are exceptions like Apple and Amazon. But, most stocks that make big moves are smaller, and, they are often shares that have had a big fall.
For a stock to double over a few quarters it needs a catalyst of amazing earnings, a big customer win, a break-up or a buy-out. At 24/7 Wall St. we went through hundreds of companies to find ones with shares that could double. Each firm had to be matched with one or more compelling reasons to create a significant spike.
We came up with the list, and if you want to get greater detail on the analysis you can see it here.
The real down and out companies in the analysis are E*Trade, Vonage, and Charter Communications. In each case there have been real questions about whether these corporations can stay in business, at least in their current structures.
The list also contains some companies which are in industries with broad downturns. Home builder KB Homes got on the list that way. Its shares are not going anywhere unless there is a massive improvement in the housing market.
There are some firms that made the list because a single event could make the shares pop. This is certainly true with Sirius which is awaiting news about a merger with XM Satellite. It is also true for biotech firm Dendreon. which could, like many other biotechs, take off with one piece of positive news from the FDA.
None of these are "safe" stocks. For a company's shares to double, it often falls into a risk category where the shares could go through a sharp sell-off as well. Just have a look at Level 3. Two years ago, it traded well under $3. Earlier this year, it hit $6.80. After disappointing earnings, it is back down to $3.15.
