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http://www.fool.com/investing/general/2009/10/05/rocket-stock-or-dud.aspx


Rocket Stock or Dud?

By Rich Smith (TMF Ditty)
October 5, 2009 | Comments (18)


DNDN

Dendreon Corp
Rate DNDN - CAPS Rating 2/5 Stars

Down $27.03 $-0.10 (-0.37%)


"The bigger they are, the harder they fall." It's the worst nightmare of every investor in today's market -- buying a rocket stock just before it takes a nosedive.

Now I readily admit that sometimes, stocks rise for a reason. But sometimes, the rise becomes the reason. No matter how often we caution them not to, investors do have a habit of buying "hot" stocks, and trusting momentum to keep 'em moving upwards.

Problem is, if the price goes up too much, even a great company can turn into a lousy investment. Below I list a few stocks that may have done just that. Stocks that, according to the smart folks at finviz.com, have more than doubled since the beginning of this year, and just might be ripe to fall back to earth.

Stock


Recent Price


CAPS Rating
(out of 5)

Atwood Oceanics (NYSE: ATW) $32.69


*****

Brocade Communications (Nasdaq: BRCD) $7.65


****

SIRIUS XM Radio (Nasdaq: SIRI) $0.60


**

Advanced Micro Devices (NYSE: AMD) $5.31


**

Dendreon (Nasdaq: DNDN) $26.42


**

Companies are selected by screening for 100% and higher price appreciation year-to-date on finviz.com. Five stars = highest possible CAPS rating; one star = lowest. Current pricing provided by Yahoo! Finance. CAPS ratings from Motley Fool CAPS.

Each of these stocks has reaped huge rewards this year, but if you ask the 140,000 investors working odds on Motley Fool CAPS, there's a good chance that the good times are at an end -- for some of these stocks, at least.


http://www.fool.com/investing/general/2009/10/05/rocket-stock-or-dud.aspx