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 with sound business prospects, achieving phenomenal returns every year. Finding just one or two of these monstrously successful firms can help you establish a winning portfolio.
Stalking the monster
To find tomorrow's winners, we'll enlist the more than 115,000 monster trackers at Motley Fool CAPS. We've compiled a list of the most successful CAPS members, dubbed All-Stars, whose picks have doubled, tripled, or even quadrupled in price. Then we've plucked out some recent picks for stocks they find equally promising.
Source: Motley Fool CAPS. Score indicates by how many percentage points the player has beaten the S&P 500 from the time of the pick.
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 of extreme buying opportunities.
In search of Bigfoot
I can remember when I could fill the gas tank in my Harley Night Train for the change I had in my pocket. But even at more than $3 a gallon, a motorcycle still offers an economical way to get around. Top-rated CAPS All-Star member saunafool figures that if nothing else, pain at the pump is a good enough reason to buy a Harley Davidson: "High gas prices, excuse to buy that Harley you always wanted."
camlive7, on the other hand, views the iconic hog-maker's broad selection of motorcycles as a way to tap into the many different tastes of bikers:
Great selection of bikes (and brands),that appeal to all biker types,cruisers, agressive street bikes, performance/race bikes and small bikes. Took a bit of a battering but should bounce back over the next few years.
Arch Coal's watched the market blacken its name in recent months. Shares fell 60% since the beginning of July, as the commodities market caved in. Although 50day believes that was just the coal bubble popping, CAPS member beachguard85 asserts that investors with at least a one-year time horizon ought to find its current price attractive:
The slide in the dollar will pick up again once inflation fears are realized by the market. Commodities stocks are trading currently at a relative low. Now is a good time to buy for 1 yr holds.
Silver would probably fall into that category of beaten-up commodities as well, and Silver Standard Resources, is one of the largest silver pure plays. While CAPS member WileyChannell figured in June that silver investments would be "exciting from here on into the [foreseeable] future," I'm sure the 40% drop in Silver Standard's price since this pitch was written wasn't the excitement Wiley was talking about.
Yet as yes2jbs noted in May, emerging markets will still add to the demand side of the equation, which ought to push prices back up:
Silver should run up even more than gold in the coming years due to the demand by emerging markets such as China and India on all commodities and raw materials.
A chance for scary growth
It pays to start your research on these stocks on Motley Fool CAPS. While you're there, weigh in with your own thoughts on whether you think these are tomorrow's monster stocks. You can read a company's financial reports, scrutinize key data and charts, and examine the comments your fellow investors have made, all from a stock's CAPS page. There's more to find than you think.
On Oct. 7, 2008, Fool Co-Founder David Gardner and his Motley Fool Pro team will invest $1 million in a portfolio designed to help you make money in any market. In the coming weeks, the team, relying heavily on proprietary CAPS "community intelligence" data, will establish long and short positions in a broad range of securities, including common stocks, publicly traded put and call options, and exchange-traded funds (ETFs). To learn more about Motley Fool Pro and to receive a private invitation to join, simply enter your email address in the box below.
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