Go!
Which of these stocks gained +145.7% in just four short months--+400% for investors who got in a little earlier--after winning approval from the U.S. Food and Drug Administration for an enzyme that can be used in the production of beer and wine?

A.) Dyadic International (DYAI)
B.) Amgen (AMGN)
C.) Genzyme (GENZ)
D.) Gilead Sciences (GILD)
E.) Biogen Idec (BIIB)
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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