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 companies 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.
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
ExxonMobil's purchase of XTO Energy shows how serious the oil giant is about its natural gas plans, as if its announcement that it was moving forward with a huge LNG plant in Papua New Guinea producing 6 million metric tons a year of LNG wasn't enough of a commitment. Papua New Guinea, in fact, could become the next major exporter, considering that InterOil found the world's largest reservoir of gas there (it has even been certified by Guinness World Records!). Papua New Guinea just agreed to let InterOil build a new gas plant next to its refinery, one that will cost as much as $7 billion to construct. The government will get a 20% stake in the plant as a result.
While investors are starting to warm to the InterOil story, they remain decidedly negative on CAPS, where nearly 60% believe the company will underperform the market. Yet even though CAPS member FreeMortal worries about InterOil's valuation having gotten ahead of itself with all the euphoria surrounding the announcements, erictfool thinks it's only a matter of time before even more good news ahead pushes the developing energy company further:
IOC has recently struck a gas well that flows at world record rates, meaning a very productive well. With the potential oil leg in there, and a strategic partnership soon to be announced, the stock should be going up, up, and away. Like the recent run up to $70 . When the partner is announced, I expect another bump upon IOC. It has been a great ride so far this past year and I look forward to another 20 points.
Join us over on the InterOil CAPS page to explain whether you think this LNG play can fuel growth opportunities for investors.
Searching for growth
At the other end of the spectrum might be GPS device maker Garmin, which still enjoys overwhelming CAPS member support -- 93% of those rating it believe it will outperform the market. But the tide is beginning to turn as competitive forces crush its market.
CAPS member chopchop0 argues that Garmin's type of stand-alone device is being commoditized, and hateninja points to major retailers as the driver behind the decline:
Someone wrote: "GPS's are being commoditized, especially starting this year." which I agree with. Cell phones, hundred dollar Walmart/CVS handhelds and other gadgets all have cheap GPS now. Time to sell Garmin and find new tech instead.
When cell phones began carrying virtually similar technology at much lower cost, it looked like the death knell was being rung for Garmin. Now that Google (Nasdaq: GOOG ) is making the software available free of charge, is there any hope left at all?
Find your way to Garmin's CAPS page and map out your opinion on whether this is the end of the road for the GPS maker.
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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