Tomorrow's Monster Stocks

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 hundreds of times in value over the past decade. These aren't penny stocks; they're viable companies with sound business prospects, achieving 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 more than 110,000 members 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.

Player

CAPS Rating

Monster Stock

CAPS Score

Recent Stock Pick

CAPS Rating

rudolphsteiner

99.99

Clayton Williams Energy (Nasdaq: CWEI  )

316.86

United States Oil (AMEX: USO  )

**

MakeItSeven

99.97

China Natural Resources

360.50

Sonus Networks (Nasdaq: SONS  )

***

farmerellis

99.92

Petrohawk Energy (NYSE: HK  )

339.18

Archer Daniels Midland (NYSE: ADM  )

****

Hibachi0

99.84

BPZ Energy (AMEX: BZP  )

311.76

Express Scripts (Nasdaq: ESRX  )

****

Of course, 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.

A volatile mix
The exchange-traded fund United States Oil is a unique ETF in that it doesn't invest in individual companies, but rather in oil futures and contracts on the New York and American stock exchanges. It's designed to track changes in the price of crude oil by holding near-term futures.

The Chicago Board Options Exchange will be creating a volatility index based on U.S. oil options to measure the market's expectation of oil prices month to month. Those expectations are perhaps best summed up by the opinion of two All-Star CAPS members who fall on different sides of the issue. saxonglass finds supply in line with demand right now and expects a large correction:

I believe we are at the point of demand destruction in the U.S. and Canada, stagnation in Europe and a reduced growth rate in the rest of the world. It does not take a major increase in production to reduce prices. Supply is about in line with demand at this point and an increase in production or continued weakness in our economy will have it's effect.

I'm looking for a 20-30% decrease as the summer rolls on.

Conversely, MarkusV doesn't see the situation improving at all, and while there may be a pullback, he expects prices to increase further:

Global demand is growing, global supply is diminishing, year after year, and the situation won't get any better because the only reserves remaining are difficult to exploit (and ultimately, more costly)

Oil will only back to earth when we have found a viable substitute for energy, until then the worst I expect is some 10-20% correction here and there, nothing more.

A disconnect at Sonus
Sonus Networks has been engaged in a pitched battle for the soul of the company with an investment firm that finds the voice-communication technology leader giving shareholders short shrift. The two sides had been in talks about adding another independent director to the board when the company abruptly canceled a meeting and adopted a "poison pill" defense against a possible takeover. The private equity firm said it has no interest in acquiring Sonus and is only looking to make the company more transparent.

With shares down some 60% over the past year, investors like CAPS member jkjubert are left projecting the potential for gains since the fundamentals of the company seem intact:

[Sonus Networks] is the market leader in the VoiceOver IP market which has been slammed in the last year. As recent as last year, the stock was trading above $8, but the horrible run of technology stocks and the market as a whole has driven this stock down to less than $4. however, [Sonus] just beat analyst expectations last quarter and continues to increase an already sizeable lead in market share over its VOIP competitors. It is almost as if the "street" did not even care that [Sonus] reported an amazing quarter--what happened to fundamentals? This stock appears to have hit a bottom, but it has been going down like a company in trouble AND YET, there is no real reason for the retreat.

A chance for scary growth
Now you can drill down and fill us in on these stocks the All-Stars see as achieving monster growth. Agree with their views? Tell us on CAPS. If you don't agree, let us know that, too! This is the place where your voice counts just as much as everyone else's.

Fool contributor Rich Duprey does not have a financial position in any of the stocks mentioned in this article. You can see his holdings. The Motley Fool has a disclosure policy.


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