Stocks that climb 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 that have sound business prospects and achieve phenomenal returns. And they happen to share some common traits: They're small, obscure, and ignored. Finding just one or two of these monstrously successful companies can help you establish a winning portfolio.
Stalking the monster
To find tomorrow's winners, we've enlisted the help of more than 135,000 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.
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
It's natural to think natural gas will continue to be a prime component of our country's energy equation for years to come. Even if the Pickens Plan doesn't become as pervasive as the eponymous billionaire hopes, electricity demands and new vehicle designs ensure that natural gas will grow in importance.
With the Marcellus shale fields becoming an even more marvelous opportunity and Haynesville being hot, there's going to be a need to transport and store all the supply coming online. And master limited partnership Enterprise Products Partners has what it takes to meet those needs. It transports, processes, and stores natural gas. And because it's structured like a REIT, Enterprise Products offers tax benefits to investors who realize that the natural gas glut can only make it bigger. Its dividend is currently yielding 7.9% annually.
And speaking of bigger, if regulators sign off on Enterprise's merger with Teppco Partners, it will become the largest publicly traded energy partnership, with analysts estimating a combined enterprise value of more than $26 billion. And CAPS member latimerburned thinks there could be more acquisition activity in the cards.
Just got a lot bigger [by] buying Teppco which will diversify their business a bit by adding a North East component. I think that this could be a bigger deal as the Marcellus start producing. Look for them to buy another midstream player in that area and then build out around it.
Not taking wing
Considering Allegheny Technologies supplies large amounts of titanium to Boeing for its 787 Dreamliner -- or as the oft-delayed plane has been more appropriately dubbed, the 7-late-7 -- it might be a while before this specialty metals maker ever gets aloft again. In 2006, Allegheny signed a $2.5 billion agreement to supply the plane builder with titanium, the largest such deal Allegheny had made with any customer. Aerospace and defense has grown to account for 34% of Allegheny's first-half revenues, up from 29% the year before. And now that Boeing has suspended the production of the 787's fuselage at one of its contractors until it can change the design engineering, the metals specialist could be grounded, too.
Investors see the company having plenty of irons in the fire. Earlier this year, highly rated CAPS All-Star member mulledover thought Allegheny had a lot going for it, beyond just the Boeing project: "Hi Tech metal fabricator. Just about now (Mar 09) is a good time to accumulate as their business has suffered with the economy and less demand for equipment components (oil/gas drilling, vehicle manufacturing) and this may continue for some time (read possibly another year or so), however the other big component is aerospace and the 787 will be making [its] first test flight in a few months which should perk up interest in this industry."
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.
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