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 by taking advantage of the market's weaknesses. These aren't penny stocks; they're viable companies with sound business prospects that are achieving phenomenal returns. 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've enlisted the help of the more than 145,000 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
According to Goldman Sachs analysis, air travel is on the rebound, meaning companies are willing to loosen their purse strings when it comes to corporate travel. That's backed up by data from the International Air Transport Association, which shows passenger demand rose 0.5% in October and is now 6% above the low point hit in March.
No doubt that's emboldening airlines like US Airways, which will add 5% surcharges to its fares early next year to protect it from possible increases in fuel prices. Between extra baggage fees, itinerary change fees, and now surcharges for costs that haven't even materialized yet, the airlines are using the capacity cuts they instituted this year to hit up passengers for more money.
That may be a short-term salve for U.S. Airway's financial woes, but it can't go on without other airlines like Continental (NYSE: CAL ) matching the actions. In the interim, US Airways will have further eroded passenger confidence in its ability to be the low-cost carrier.
However, CAPS member ExitOnBir thinks that even incremental increases in revenue will end up helping the airline:
Relatively attractive due to current low price and likely to improve fundamentals. With costs cut so deep, any slight increase in revenue, even 1 %, will boost the earnings wildly.
Tell us over on the US Airways CAPS page whether you think this airline is ready to crash and burn over these new fees.
Powering up
According to the Australian Bureau of Agricultural and Resource Economics, demand for uranium far outpaced supply last year, and may be poised to do so again next year. That could lead to uranium prices jumping some 22% in 2010. With exploration expenses down 20% this year, and hundreds of reactors on the drawing boards of countries around the globe, enriched-uranium provider USEC may be due for a rebound of its own.
Yet CAPS member azman90 sees USEC's success hinging on the American Centrifuge Project, for which it was denied an Energy Department loan earlier this year.
While politicians are weighing in to force the loan to USEC, CAPS member technomanslade remains concerned:
Specifically, the fact that the government wanted the company to wait 12-18 months before reapplying (the government seemed to offer $45 million in research money instead of the loan request), but USEC is going to try again early next year. I'm not sure that the government's position is going to change so quickly. Without the government's loan, I submit that it would be difficult to get private funding, especially considering that the American Centrifuge project is only half funded at this time.
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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