Published: November 25, 2009
The
correct answer is
(A.) Dyadic International
The company, which has already
licensed out some of its
energy-related technology, also
recently won U.S. Food and Drug
Administration approval for an
enzyme that can be used in the
production of beer and wine. Its
shares have gained +145.7% in just
four short months. Earlier investors
have done even better--the stock's
$0.49 nadir this summer has produced
a +400% pop for some.
It just goes to show that a stock
can indeed continue rising, even
after a strong gain. Although the
gains might not continue
indefinitely, it's no stretch to see
such a dramatic trend last for
years. Hundreds of stocks have
conclusively proven that selling to
collect a short-term gain can be
ill-advised -- and very costly.
Take Apple (Nasdaq: AAPL), for
instance. Had an investor bought
shares in late September 2003 for
$10.35, he or she could have taken a
nice +80% gain the following year
when the price hit $18.60. But any
investor who did so would have
failed to cash in on Apple's
eventual rise to today's price of
$196.35, a +1,816% gain. Which one
would you rather have?
The fact is that short-sighted
analysts are the only ones who care
about today's results. Investors
looking for long-term gains need a
more thorough analysis--the kind
StreetAuthority editor Andy
Obermueller provides in his
Government-Driven Investing
newsletter. Each month, Andy
highlights and provides in-depth
analysis of companies poised to
capitalize on government activity
around the world. It's just one way
StreetAuthority helps investors spot
stocks that lead to long-term
wealth. To learn the names of Andy's
other picks, and to learn more about
Government-Driven Investing,
please visit this link.
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