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 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.
Player |
Monster Stock |
CAPS Score |
Recent Stock Pick |
CAPS Rating
|
|
---|---|---|---|---|---|
99.98 |
Century Aluminum |
580.97 |
MannKind |
** |
|
99.91 |
Mechel |
546.23 |
Berkshire Hathaway |
***** |
|
99.79 |
Bank of Ireland |
557.42 |
Jacobs Engineering |
** |
|
99.67 |
Teck Resources |
533.90 |
Sutor Technology |
***** |
|
99.67 |
Apollo Investment |
303.93 |
Dana Holding |
** |
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 might seem a bit odd that a company without any revenue streams at the moment sports a better than $1 billion market cap, and that it has grown more than 175% so far this year. Yet MannKind, which has been on a rollercoaster of sorts with shares plunging as low as $2 a stub and soaring as high as $12, could actually grow even bigger.
Highly rated CAPS All-Star Seansonfire points out that it has a big meeting date with the FDA in January that could determine its fate.
With their diabetes drug up for final approval on Jan. 16 this stock can become the next (Celgene) CELG. I expect the FDA to approve the drug which should trigger a run up in the stock. This is a play on the Fatness of America. God we are so Fat.
He's referring to MannKind's Afresa, an inhaled insulin therapy for Type I and Type II diabetes. Such treatments have had tough campaigns before, and both Eli Lilly
Complicating MannKind's efforts is its inability to find a marketing partner. It hoped to have one on board before year's end but ended up admitting it will have to wait until its gets approval before seeking one out. That could explain why only 76% of those CAPS members rating MannKind think it will outperform the market.
Tell us over on the MannKind's CAPS page whether you think this biopharmaceutical can prescribe a growth opportunity for investors.
The next slag heap?
Even with China aiming for strong economic growth next year, there's threat of the country overheating because of the government's stimulus spending. It's causing excessive amounts of investment in some industries like steel where Sutor Technology had to cut prices to retain market share and attract new customers resulting in plunging profit margins.
CAPS member ArgoNate looks to be unperturbed about the possibility and believes these growth opportunities will allow them to expand internationally.
Steel is the sector to be in. China is the place to be. Their sales are all to China, which means they'll grow fast, and expanding sales to the U.S. and other countries will be a bonus beginning over the next year or two. Steel is one of the most volatile sectors over the long-term, and this is a chance to buy it at the bottom.
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.