5 Superball Stocks

When stocks fall fast and far, they sometimes set themselves up for remarkable rebounds. The following equities suffered dramatic drops over the past week. With help from the 180,000-member Motley Fool CAPS community, we'll see whether any of them have the potential to bounce back.

It's been a while, but thanks to last week's sell-off, we once again have a chance to stand beneath Mr. Market's silverware drawer in hopes of snagging a bargain. Let's meet today's contenders:

Companies

How Far From 52-Week High?

Recent Price

CAPS Rating
(out of 5)

Companies are selected by screening on finviz.com for abrupt 10% or greater price drops last week. 52-week high and recent price data provided by finviz.com. CAPS ratings from Motley Fool CAPS.

Five super falls -- one superball
For four straight days, the Dow Jones Industrial Average plummeted last week, before a modestly positive jobs report on Friday pulled it out of its nosedive. Even so, the last-minute save wasn't enough to salvage the fortunes of all stocks. Nearly 3,300 companies ended the week lower than they went into it. More than 300 were literally decimated, losing 10% or more of their market cap, and these included all five of the stocks named above. So what went wrong?

Beginning at the bottom, rare-earth metals miner Molycorp lost more than a quarter of its market cap after reporting earnings Friday. Revenue was up modestly, but less than expected. Worse, the company's $0.71-per-share loss fell well short of the $0.03 profit analysts had told us to expect. Oops.

Speaking of earnings, Arena Pharmaceuticals is slated to report Thursday. If last week's trading was any indication of what the news might hold, it won't be good. The shares lost 22%. It's a similar story with MannKind, which reports its earnings today. Meanwhile, Dendreon earned its place atop the pile of weekly losers when it admitted that Q2 sales grew slower than expected -- $80 million instead of $85 million, a mere 66% increase. (Only "66%?" Horrors!) The good news, though, is that based on last week's results, Dendreon's only $71.5 million in annual revenues away from making a profit. We hope.

So much for the two- and three-starred stocks on this list. What you really want to know about is the stock that everyone thinks will do well, right? Well, you're in luck. Now we turn to our five-starred nominee.

http://www.fool.com/investing/general/2012/08/07/5-superball-stocks.aspx