Wall Street's Buy List

Actions speak louder than words, as the old saying goes. So why does the media focus so much attention on what Wall Street says about companies, instead of what it does with them?

Once upon a time, we didn't know what the bankers were up to. Now, thanks to the folks at finviz.com, it's easy to keep tabs on the stocks that financial institutions buy and sell. And the 180,000-plus lay and professional investors on Motley Fool CAPS can lend us further insight into whether these decisions make sense.

Here's the latest edition of Wall Street's buy list, alongside our investors' opinions of the companies:

CAPS Rating (out of 5)

Companies are selected based on past-3-month changes in institutional ownership, as reported on finviz.com. Recent price provided by Yahoo! Finance. CAPS ratings from Motley Fool CAPS.

Up on Wall Street, the professionals think these stocks are the greatest things since sliced bread. But are they really the best places for you to put your money?

Judging by the mediocre two- and three-star ratings that CAPS members are handing out to most of them, they may not be. Take MannKind, for example. The release of preclinical data on its new multiple myeloma drug did little to move MannKind's stock price earlier this month. Evidently, investors are more worried about how this company -- $490 million in debt and burning cash with free cash flow of negative $130 million -- is going to survive to see its products commercialized.

On the other side of the coin, LibiGel maker BioSante is trading for not much more than the cash it has in the bank. But with less than half-a-million dollars in annual sales, and no profits on the horizon, investors may be right. BioSante may not be worth much more than its bank account.....

http://www.dailyfinance.com/2012/06/11/wall-streets-buy-list/