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 150,000 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 (out of 5) |
|
---|---|---|---|---|---|
99.99 |
Aluminum Corp of China |
105.66 |
Merck |
**** |
|
99.99 |
XL Capital |
424.55 |
China Information Security Technology |
***** |
|
99.92 |
Genworth Financial |
653.68 |
Frontier Communications |
*** |
|
99.80 |
Berry Petroleum |
238.18 |
InterDigital |
**** |
|
99.61 |
Amazon.com |
284.03 |
PowerShares DB Gold Double Short ETN |
* |
Score is by how many percentage points that pick is beating the S&P 500.
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
As the stakes in the smartphone market increase, the animosity between the players grows. Nokia, perhaps in a bit of desperation, is lashing out at a number of rivals, and not always unsuccessfully either. It won a mobile-related patents dispute with InterDigital and tweaked Apple
Since it was involved in one of those actions, InterDigital isn't exactly an uninterested bystander and no doubt is rooting for Apple, but its business remains healthy even with the loss of the Nokia case. It has rich licensing deals with Apple, Research In Motion
However, the stock is down 25% for the past year, trades at 20-times trailing earnings, and goes for a miniscule 8.7-times current year profit projections. When CAPS member danpuperi looked at InterDigital in January, the market had appraised its prospects at a higher level, but since then the stock has slid 10%, making the rest of danpuperi's analys even more valid:
Financials look solid -- low debt, strong cash and positive cash flow, high profit margin. Growing company with stable EPS growth and good growth predicted for next year. Lots of share buybacks for the past 5 years. Really nothing negative to say. Only downside is that it is a little expensive at about $27.
The rest of the CAPS community would seem to back up his assessment, as 96% of the more than 1,100 members rating the digital wireless tech maker to outperform the market. Head over to the InterDigital CAPS page and make a connection with your opinion on this company's future.
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.