Wednesday August 27, 2008
Ken Kam follows 70,000+ stock pickers who run virtual portfolios on Marketocracy; he looks for stocks bought by the 'best' while being sold by the 'rest'. Here's his two latest ideas.
"Sun Healthcare Group (NASDAQ : SUNH) is a small-cap, California-based, healthcare facility company that specializes in inpatient, rehabilitation, and medical staffing services.
"SUNH has 24,000 beds and 213 long-term care facilities in 25 states; 416 rehabilitation centers in 33 states and temporary medical staffing in 38 states.
"The 'best' investors have increased their holdings in the stock by 38%, while the 'rest' have decreased their positions by 1%. The Best Investors began purchasing SUNH in January 2005 at $8 and they would gradually increase those shares until selling some in July '06 at $8.
"Later, in January 2007, a significant purchase was made at $12, and many of those were then sold in May 20'08 at $14. Now, in the past two weeks, the Best Investors have purchased more shares of Sun Healthcare.
"L.B. Foster Co. (NASDAQ: FSTR) is a small-cap, Pittsburgh-based, Industrial Machinery company. FSTR specializes in manufacturing and distributing rail, construction and tubular products for rail, construction, energy and utility companies.
"They create rails, concrete ties, rail joints, precast concrete buildings, fabricated steel, bridge decking, coated pipes and threaded pipes.
"The 'best' increased their holdings by 12% while the 'rest' decreased their holdings by 1%. The Best Investors began purchasing FSTR in August 2003 at $5, and the stock has had an incredible ride ever since.
"In April 2005 they bought some at $9, and in May 2006 they bought some more at $25. Some sold FSTR in November 2006 at $22, but others kept onto it. Now, in the past two weeks, the Best Investors have purchased more shares of FSTR."
