Stocks That Doubled in 2011, Crushed the Market in 2012

In December 2011, I posted a year-end snapshot of market performance. There were 29 liquid stocks that doubled that year. I am sure, you are curious how they performed in 2012:

- One more than quadrupled ($PCYC),

- One tripled ($SNSS)

- Two more than doubled ($MDVN and $CONN)

- 11 lost more than 30% of their market cap.

One third of 2011 doubles did terrible and yet the overall performance of the list is nothing short of impressive. An equal weighted portfolio of all stocks that doubled in 2011, delivered 23.63% return in 2012 so far. And this without using any stop losses. Had you applied a simple 10% stop loss from your purchase point, that return would have been a lot better.

So, yes, momentum still works.

Without further ado, here is the list of the doubles in 2012 – 131 so far – 4X the number in 2011. Let’s see how they do in 2013 as a group.

Keep in mind that there are different ways to play the momentum game. If you pick your stocks only among the best performers of the past 6 months, the odds are that you will miss all fresh breakouts – all stocks that are just breaking out to 52-week highs from long sideways bases – with other words, the best setups in terms of risk to reward.

P.S. I know the article of 2011 says 35 stocks doubled, but I must have miscalculated them. There were only 29 stocks in the table.

The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

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