Stocks climbing to 10 times their original price are rare breeds -- 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 120,000-plus monster trackers of the nearly 5,400 stocks we have listed on 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 (or more!) in price. Then we've plucked out some of their recent picks that they find equally promising.
|
Player |
Monster Stock |
CAPS Score |
Recent Stock Pick |
||
|---|---|---|---|---|---|
|
99.98 |
First Solar |
547.09 |
Cardtronics |
** |
|
|
99.95 |
Sovereign Bancorp |
110.51 |
Walgreen |
**** |
|
|
99.75 |
Wachovia |
270.49 |
Research In Motion |
** |
|
|
99.48 |
DryShips |
172.67 |
E*Trade Financial |
*** |
|
|
98.92 |
Sutor Technology |
128.47 |
A-Power Energy Generation Systems |
**** |
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
You might think of E*Trade Financial as your online discount broker, but its banking operations remain substantial, even though it has lost $236 million so far this year -- primarily on writedowns of home equity loans. It's also applying for $800 million from the federal government through its bank bailout loan program. CAPS member methusalaw pointed out at the end of last month that when the housing crisis hit, E*Trade restructured its portfolio and is now positioned to climb out of the morass:
[E*Trade] has been quietly performing a solid recovery while accelerating its core business (online brokerage) over its peers. It has been building its cash balance and provisions against its mortgage portfolio while its mortgage portfolio is performing better than most others in the business. ... They have reduced their open HELOCs from $7 B down to $3 B and none of those are late payment or delinquent. Their brokerage is No. 1 in the online investment industry and all points to a profitable quarter the 1QTR of 2009. Everything is lining up.
Top-rated CAPS All-Star MADACASTO is looking for Research In Motion to unleash a "storm" with its next-generation Storm BlackBerry competing head-to-head against what looks like a faltering iPhone:
Release of Blackberry Storm reported for later this month. Will directly compete with iphone. If Apple's scaleback is true and this release occurs during the holiday season, this stock may see a dramatic advance. Most enterprise users are with blackberrys and prefer them over iphones. Look for Verizon to subsidize the price of blackberrys to seriously curtail customer defection to [AT&T].
A chance for scary growth
It takes more than a few All-Star picks and a quick paragraph to make buy or sell decisions, so start your own research on these stocks on Motley Fool CAPS. 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. And while you're there, weigh in with your own thoughts on whether you think these are tomorrow's monster stocks.
