Tomorrow's Monster Stocks

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

CAPS Member Rating

Monster Stock

CAPS Score

Recent Stock Pick

CAPS Rating (out of 5 max)

BravoBevo

99.98

First Solar

547.09

Cardtronics (Nasdaq: CATM  )

**

FlaxSeedOil

99.95

Sovereign Bancorp (NYSE: SOV  )

110.51

Walgreen (NYSE: WAG  )

****

TheSheet

99.75

Wachovia

270.49

Research In Motion (Nasdaq: RIMM  )

**

mm2001

99.48

DryShips

172.67

E*Trade Financial (Nasdaq: ETFC  )

***

Scones

98.92

Sutor Technology (Nasdaq: SUTR  )

128.47

A-Power Energy Generation Systems (Nasdaq: APWR  )

****

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.

Apple is a Motley Fool Stock Advisor pick. Try any of our Foolish newsletters today, free for 30 days.

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

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Read/Post Comments (3) | Recommend This Article (7)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On November 11, 2008, at 2:31 AM, cmanasco wrote:

    Etrade has been improving it's business model lately, ridding itself of bad debt faster than many others and adding new investors to the brokerage business faster than any of it's competitors. The first quarter of positive earnings, which may come sooner than you think, will cause this stock to swing to the upside faster than many in this sector. It isn't often to find what seems like a speculative stock so cheap with so much upside. They aren't going away and I think it is time to buy!

  • Report this Comment On December 19, 2008, at 4:57 PM, Scones wrote:

    Sutor (SUTR) is a great little company that has doubled in share price in recent weeks. Buying this little gem on dips is a wise choice in my opinion. $586 billion will be flowing into the Chinese economy in the form of their stimulus package. There aren't a great many publicly traded steel companies in China and Sutor should benefit handsomely as infrastructure is rebuilt.

  • Report this Comment On February 03, 2009, at 1:26 AM, yanchuan wrote:

    it's a good recommendation, i think it's a prosperou company in china.

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