In the short term, the stock market is a popularity contest. A high-performing stock gets the most coverage, and people begin buying shares simply because its price has been going up. This drives the price even higher, drawing more people into the stock. This can only go on for so long -- eventually, there aren't any buyers left. A horrific crash follows, leaving those who bought in late with staggering losses.
There's no telling how long it will take for this crash to occur. Often, even the smallest piece of bad news can trigger it. Let's take a look at a few stocks which have risen too far, too fast -- and might be set for a painful fall.
Unbridled enthusiasm
Electric car maker Tesla (NASDAQ: TSLA ) has been on a tremendous run so far this year. The stock has shot up like a rocket, with the company now valued at about $23 billion.
TSLA data by YCharts
Top Performing Stocks To Own Right Now: First Bancorp Inc(ME)
The First Bancorp, Inc. operates as a holding company for The First, N.A., which is a chartered national bank that provides various banking services to individual and corporate customers in coastal Maine. The company offers various deposit products, including demand, savings, NOW, money market, and certificate of deposit accounts. It also provides various loan products, such as commercial real estate, commercial construction, and other commercial loans; municipal loans; residential term and construction loans; home equity lines of credit; and consumer loans. In addition, the company offers private banking, financial planning, investment management, and trust services to individuals, businesses, non-profit organizations, and municipalities. It operates a network of 14 full-service banking offices in Lincoln, Knox, Hancock, and Washington Counties located in the mid-coast and down east regions of Maine. The company was formerly known as First National Lincoln Corporation and changed its name to The First Bancorp, Inc. in April 2008. The company was founded in 1864 and is based in Damariscotta, Maine.
Top Performing Stocks To Own Right Now: Rodman & Renshaw Capital Group Inc.(RODM)
Rodman & Renshaw Capital Group, Inc., through its subsidiaries, provides investment banking services to public and private companies primarily in the United States and China. It offers corporate finance in a range of financing alternatives, including private placements, private investments in public equity, registered direct offerings, and public offerings. The company also offers strategic advisory services on various transactions comprising mergers, acquisitions, and asset sales; sales and trading services; and equity research services to institutional investors. In addition, it designs investment conferences that bring together companies, institutional investors, business development executives, and experts. Further, the company makes principal investments in early-stage biotechnology and life sciences companies. Rodman & Renshaw Capital Group, Inc. serves the life science/healthcare, energy, metals/mining, financial services, and cleantech sectors. The company was foun ded in 2002 and is headquartered in New York, New York.
5 Best Blue Chip Stocks To Own Right Now: Atac Resources Ltd. (ATC.V)
ATAC Resources Ltd. engages in exploring for metals and minerals with a focus on gold in Canada. It primarily focuses on the exploration and development of the Rackla gold project covering approximately 1,600 square kilometers located in central Yukon. The company also owns interests in the Connaught prospect, a silver-gold property located in the Sixtymile placer gold camp of western Yukon Territory; and the Dawson gold project located in west-central Yukon approximately. ATAC Resources Ltd. is headquartered in Vancouver, Canada.
Top Performing Stocks To Own Right Now: Ramba Energy Limited (R14.SI)
Ramba Energy Limited, an investment holding company, engages in the exploration and production of oil and gas in Indonesia; and the provision of transportation and logistics services in the Asia Pacific region. The company holds a 70% interest in the Jatirarangon block in West Java, a 100% interest in the West Jambi block in Sumatra, and a 51% interest in the Lemang block in Sumatra. It also provides supply chain services, including inbound and outbound transportation, distribution management, seaport and airport cargo handling services, and chemical logistics distribution; and container haulage, project logistics, and warehousing. The company�s container haulage services comprise import and export haulage, container staging and fumigation, container loading and unloading, freight documentation, permit declaration, customs clearance, cross-border haulage, and short-term storage services. Its project logistics services include bulk commodity transportation primarily for co al, steel, and nickel; marine logistics covering ship brokering and ship chartering; heavy lift and logistics services for project cargo movement, mainly in the energy, mining, construction, and infrastructure sectors; and freight management and contract logistics for oil and gas exploration and production companies. The company�s warehousing services comprise order fulfillment, merge in transit, pick and pack, asset ownership, multi-client warehousing management, consolidation x-dock, and bulk and chemical warehousing services. It serves technology, petrochemical, oil and gas, freight-forwarding, consumer goods, and manufacturing sectors. In addition, Ramba Energy Limited engages in property rental activities. The company was formerly known as RichLand Group Limited and changed its name to Ramba Energy Limited in January 2009. The company was founded in 1992 and is based in Singapore. Ramba Energy Limited is a subsidiary of Redmount Holdings Limited.
Top Performing Stocks To Own Right Now: GTSI Corp.(GTSI)
GTSI Corp., together with its subsidiaries, provides information technology (IT) hardware and solutions to federal, state, and local government customers, as well as to prime contractors in the United States. It offers IT infrastructure solutions, including data center consolidation and optimization solutions, server and desktop virtualization solutions, cloud computing solutions, network modernization solutions, unified communications and collaboration solutions, database and software development solutions, asset management solutions, and financial services solutions. The company also provides various services comprising software development and maintenance, program and project management, database development and maintenance, and legacy systems modernization services. In addition, it offers computer hardware, software, and peripheral products, as well as provides technical support and assistance services. The company markets and sells its computer hardware and software, and solutions through GTSI.com. It has strategic partner relationships with Cisco, Hewlett Packard, Crossmatch Technologies, Microsoft, Dell, Oracle, Net App, and Hitachi. GTSI Corp. was founded in 1983 and is headquartered in Herndon, Virginia.
Advisors' Opinion:- [By Geoff Gannon]
I picked GTSI (GTSI) for the Ben Graham: Net-Net Newsletter.
And that is not a good business. It lost money in about half of the last 10 years. It had no history of earning more than about 6% on equity over time. It was a truly terrible business.
Top Performing Stocks To Own Right Now: Bioniche Life Scie Com Npv (BNC.TO)
Bioniche Life Sciences Inc., a biopharmaceutical company, discovers, develops, manufactures, and markets proprietary products for human and animal health markets worldwide. The company operates in three segments: Human Health, Animal Health, and Food Safety. The Human Health segment is involved in the discovery, pre-clinical research, clinical development, regulatory submission, and commercialization of therapeutic products for use in human medicine. Its product development candidates include mycobacterial cell wall-DNA complex (MCC) for the treatment of bladder cancer, intraperitoneal cancers, and metastatic cancers; and a combination of MCC and hyaluronan for treatment of prostate cancer. This segment also develops Urocidin, which is in Phase III clinical testing for the treatment of non-muscle-invasive bladder cancer. The Animal Health segment develops vaccines and other pharmaceutical products for the preventive health management of animal diseases. This segment offers products in areas, such as assisted reproduction, immunostimulant, hyaluronan based, and nutritional and natural health products for veterinarians. It also engages in the research and development of products in areas comprising canine cancer therapies, rhodococcus equi vaccines, natural health products, and equine plasma products. The Food Safety segment is involved in researching, developing, manufacturing, and marketing veterinary biopharmaceutical products for the safety of food and water supplies. This segment develops Econiche, a cattle vaccine, which is used to reduce the spread of E. coli O157 bacterium. Bioniche Life Sciences Inc. was founded in 1979 and is headquartered in Belleville, Canada.
Top Performing Stocks To Own Right Now: Midlands Minerals Corporation(MEX.V)
Midland Minerals Corporation, a junior exploration stage company, engages in the acquisition, exploration, and development of mineral properties. It engages in the exploration of gold, precious metals, diamonds, and other resources in the continent of Africa. It has interests in Sian-Praso property, which covers an area of approximately 157 square kilometers located on the northwest of Accra, Ghana; and Kaniago property that consists of an area of approximately 25.5 square kilometers located on the Asankrangwa Gold Belt, Ghana. The company also has interests in Lwenge, Kishapu, Lalago, Vukene, and Itilima properties in the Lake Victoria Goldfields area in Tanzania; and Tamota, Mziha East, Ruanda, and Turian East properties in the Handeni area in Tanzania. Midlands Minerals Corporation is headquartered in Toronto, Canada.
Top Performing Stocks To Own Right Now: DayStar Technologies Inc.(DSTI)
DayStar Technologies, Inc., a development stage company, engages in the development, manufacture, and marketing of solar photovoltaic products to the grid-tied and ground-based photovoltaic markets. The company offers solar photovoltaic modules to convert sunlight into electricity. It provides monolithically integrated copper indium gallium selenide modules on glass laminate substrates for centralized utility power plants, commercial building roof tops, and smaller residential roof tops. DayStar Technologies, Inc. was founded in 1997 and is headquartered in Milpitas, California.
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