.....The Winning Trends of 2013
There are several interesting "thesis"-like investing trends that emerge from this list. These trends include, but are not limiited to, the following:
Trend #1: Solar Was Hot! One industry dominated the list with six companies in the top 20 -- the solar industry. Solar and solar-related stocks placed four companies in the top five. The #1 stock for 2013 as of this writing, Canadian Solar (CSIQ), turned in a nearly four-digit, one-year return.
#19: SunEdison Inc. (SUNE), +345%
#18: Trina Solar Limited (TSL), +346%
#5: JinkoSolar Holding Company (JKS), +556%
#4: SunPower Corporation (SPWR), +560%
#2: Daqo New Energy Corporation (DQ), +880%
#1: Canadian Solar Inc., +969%
What triggered the run in solars? It seems to have been, at least in part, a piece of pending legislation. On April 24 of this year, a group of two senators and two congressmen introduced The Master Limited Partnership Parity Act (S.795). Oil, gas and coal companies are currently able to form tax-advantaged MLP's. They have been able to do so since 1987. The new law would now give the alternative energy companies the same tax benefits. According to Govtrack.gov, S.795 is still stuck in the Senate Finance Committee and has a less than 1% chance of becoming law.Still, the perception that the government is favorable toward the industry seems to have been enough to turn on the money flow. While there were certainly other factors at work -- including rumors of industry consolidation -- this potential shift in the tax code propelled the solars sharply higher following a multi-week period of consolidating earlier gains...........
As evidence of the need to be forewarned, consider the top 10 stocks of the S&P 500 for 2012. The list was dominated a year ago by homebuilders, banks and oil services companies. The average one-year return for the group was +108%, which is remarkable given that the S&P itself was only half as strong as it has been this year. Today, those same 10 companies are printing an average one-year return that can't even match the S&P 500 itself.
Of the 20 companies on the list of the most successful stocks for 2013, only six had actual net EPS in 2012. The 2013 picture didn't improve much for our top 20: As of this writing, only five managed to grind out a positive EPS and, of those, only one company has a P/E ratio that shows a favorable valuation (NXST, 9.2), but it has to carry a debt/equity ratio of 89 (scary!) in order to maintain it......
seekingalpha.com/article/...op-20-stocks-of-2013?source=nasdaq