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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 more than 125,000 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 of their recent picks for stocks they find equally promising.

Player

CAPS Member Rating

Monster Stock

CAPS Score

Recent Stock Pick

CAPS Rating (5 max)

BravoBevo

99.98

First Solar

547.09

STEC (Nasdaq: STEC  )

***

bbmaven

99.96

Walter Industries

425.46

American Oriental Bioengineering (NYSE: AOB  )

*****

knudfool

99.62

Terra Nitrogen

453.55

Kinder Morgan Management (NYSE: KMR  )

*****

jvdauron7

98.87

Navios Maritime (NYSE: NM  )

128.94

Dolby Labs (NYSE: DLB  )

*****

kadken

98.85

TBS International

489.74

AK Steel (NYSE: AKS  )

***

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 what could be extreme buying opportunities.

In search of Bigfoot
If you do a Google search for solid-state drives (SSDs), you'll quickly get the impression that this is the next wave of advancement in computers. Even Sun Microsystems (Nasdaq: JAVA  ) is getting in on the game. Since they tend to be faster than hard disk drives, particularly when reading data, SSDs are growing in popularity, though their higher price has made it hard to overcome concerns about their write durability. But Intel, Micron, and others are assuring businesses that they are laying those worries to rest, so even wider adoption may be on the horizon.

Analysts see STEC performing solidly in the SSD business, though they have concerns about its legacy affiliations with networking. Top-rated CAPS All-Star TSIF says STEC's first-mover status is worth a lot:

Solid state disk drives, first to market. While other companies, ([Seagate Technology]) may come along and do it better and cheaper eventually, those first to market will hold a share and should be able to grow it if they keep R&D focused and supplied.

If providing quality audio playback were all Dolby Labs had going for it, the sound specialist would still represent a formidable foe in the marketplace. But Dolby has its fingers in more than just your stereo's sound system. You'll find the recognizable logo on TVs, set-top boxes, theaters, cell phones, and portable music players.

CAPS member nrlbuild thinks that Dolby is simply indispensible to manufacturers of audio equipment:

Dolby's audio codecs have become...over the last 20 years?... almost fundamental to audio playback. They have proven themselves in terms of mastering the licensing protocol which makes there products profitable. Audio as entertainment will continue to grow throughout the world. Very strong ownership interest. Recommended by Fools.

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. 

On Jan. 12, 2009, Fool co-founder David Gardner, Jeff Fischer, and their Motley Fool Pro team will accept new subscribers to their real-money portfolio service. Motley Fool Pro is investing $1 million of the Fool's own money in long and short positions in a range of securities, including common stocks, put and call options, and exchange-traded funds (ETFs). They also incorporate proprietary CAPS "community intelligence" data into their research. 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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American Oriental Bioengineering is a Motley Fool Hidden Gems recommendation. Intel is an Inside Value selection. Dolby Laboratories is a Stock Advisor pick. The Fool owns shares of American Oriental Bioengineering and Intel, as well as covered calls on Intel. 

Fool contributor Rich Duprey owns shares of Dolby and Intel, and has options on Intel, but does not have a financial position in any of the other stocks mentioned in this article. You can see his holdings here. The Motley Fool has a disclosure policy.


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Related Tickers

2/13/2012 4:00 PM
STEC $10.36 Up +0.24 +2.37%
STEC, Inc. CAPS Rating: ****
DLB $37.60 Up +0.09 +0.24%
Dolby Laboratories CAPS Rating: *****
JAVA.DL $9.49 Down +0.00 +0.00%
Sun Microsystems,… CAPS Rating: **
NM $4.13 Up +0.11 +2.74%
Navios Maritime Ho… CAPS Rating: *****
AKS $8.38 Up +0.22 +2.70%
AK Steel Holding C… CAPS Rating: ***
AOB $0.82 Down -0.01 -1.39%
American Oriental… CAPS Rating: ***

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