Investors know that investing in the stock market has plenty of ups and downs, and that no investment strategy will insulate you from the unexpected. The stock market can be a fickle place, where what’s in one month is out the next. Investors have learned to take a short-term approach to things in the wake of the financial crisis, prepared to get defensive quickly if the market has one of its “retest” fits where it doesn’t seem like any investment is going to see appreciation for a while.
Wall Street had one of these corrections in May, with the major stock market indexes taking a spill of around 10%. But don’t think that just because most stocks were losing ground that there weren’t a few winners out there. In fact, investors in a handful of stocks actually made a bundle in May despite the market’s overall declines.
Here are seven stocks that posted +20% gains in the month of May even while the market went haywire. Gains are from the market close on April 30 to the market close on May 28, the Friday before Memorial Day.
Forward Industries (FORD): This textiles stock designs and manufacturers those little fabric and leather covers for your iPhone, BlackBerry and sundry other electronic devices. It also specializes in face plates and various accesorites. FORD stock tallied a whopping +70% gain in May.
Spreadtrum Communications (SPRD): This China based semiconductor stock added +58% last month. Spreadtrum makes chips for wireless phones, and has seen big earnings growth lately fueling a stock surge. In the middle of May the company posted a first-quarter profit, reversing a loss a year earlier as revenue grew more than six-fold.
Akorn Inc (AKRX): A small pharmaceutical stock with a market cap of about $270 million, Akorn made the grand move in May that so many small-time drug makers aspire to – it turned a profit! The approval of one of its generic painkillers in April has added to momentum and AKRX stock tallied a +38% gain in May to log a nearly 60% gain year-to-date.
Uroplasty Inc. (UPI): This medical device manufacturer saw +47% gains from the end of April to the end of May. Though incontinence is embarrassing for patients, the focus on treating urinary tract diseases has been big business for UPI in recent quarters and there is a lot of growth ahead.
TPC Group (TPCG): A stock more formally known as Texas Petrochemicals, TPC produces specialized lines of chemicals used in the production of rubber, gasoline and a host of other products. The stock tallied +26% gains in May despite volatility in the broader stock market.
Commercial Vehicle Group (CVGI): This auto parts had a rough go of it when U.S. auto sales dropped into oblivion thanks to the financial crisis, but now that the auto industry has bounced back so has CVGI stock. The company gained +24% in May thanks to strong sales among its seating systems, trims and other products used in vehicle manufacturing across the commercial and consumer auto industry.
American Medical Systems (AMMD): Another medical device stock, AMMD gained +23% in May. Like Uroplasty, AMMD also focuses on the urinary tract and the pelvic health of women. The company has seen strong growth so far this year and as a result of health care reform could see continued momentum across 2010.
As of this writing, Jeff Reeves did not own a position in any of the stocks mentioned here.
