Stocks that climb to 10 times their original price are a rare breed, but they're not impossible to find -- especially when you have Fools for friends.
The market's best stocks include companies that have risen dozens of times in value over the past decade. These aren't penny stocks; they're viable companies that have sound business prospects and achieve phenomenal returns every year. Finding just one or two of these monstrously successful companies can help you establish a winning portfolio.
Stalking the monster
To find tomorrow's monster stocks, we'll enlist the 105,000 investors at Motley Fool CAPS. We've compiled a list of the most successful CAPS players, dubbed All-Stars, whose picks have doubled, tripled, or even quadrupled in price. Then we've plucked out some of their recent picks for stocks they find equally promising.
Source: Motley Fool CAPS. "CAPS Score" is by how many percentage points the pick is outperforming the S&P 500 index.
This is not a list of stocks to buy or, for those monster stocks that our CAPS All-Stars have already found, sell. Just consider them starting points for your own further research.
Spanning the oceans
The bloated price of oil these days has companies drilling deeper, farther, and in larger quantities to keep the black gold flowing. That's keeping the drilling companies busy as well and is pushing their profits ever higher. Transocean just reported its quarterly results at the beginning of the month and notched a 70% increase in sequential operating income gains.
It's little wonder that some investors have descended on the contract drillers, such as Transocean and Noble (NYSE: NE), as prime opportunities for further gains. CAPS player freefall51 sees Transocean as just about the only stock an investor could need.
If I were to choose one stock -- just one -- this is it. [Transocean] has more business in front of them that they can handle. ... The world is demanding more energy. [Alternative] energy is not keeping up the pace. So oil will get tighter, even if the U.S. falls [into a] recession. ... Most big oil finds are now out in the deep sea. ... [Transocean] has terrific market position in deep sea drilling. Competition is not a problem, as speedy availability for their deep sea rigs is more important. ... [Transocean has] a deliberate, disciplined and opportunistic expansion program [and is getting] out of the crowded shelf drilling business and into more profitable deep sea [drilling].
Moreover, the easy oil has been found already, as CAPS All-Star wildeagain points out. So drillers such as Petrobras (NYSE: PBR) will need Transocean's deeper-water rigs:
[Transocean] has half of the deep water rigs in the world. … Anyway, easy oil is soon over. Hard oil is [with Petrobras] and their find in Brazil. They need deep rigs to get that oil from their amazing find. They need [Transocean]. Therefore, I need [Transocean]. ... Strangely, some other deep riggers like Noble are at 52 week highs, so [Transocean] is priced at this moment to turn up. The best in breed does not trail Noble.
A chance for scary growth
Now's the opportunity for you to drill deep for Transocean or any of the other stocks these All-Stars see as achieving monster growth. Agree with their views? Tell us on CAPS. If you disagree, let us know that, too! Your voice counts just as much as everyone else's on CAPS. Let's hear whether you think tomorrow's monster stocks have been uncovered today.
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