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 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 165,000 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.
Score is how many percentage points by which 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, to sell. Just consider them starting points for your further research of extreme buying opportunities.
In search of Bigfoot
It's not enough to show your drug delivery system benefited patients. As Delcath Systems learned, you also have to convince the market that you've performed adequate testing and there's enough of a target audience for what you're selling.
In a presentation at a cancer meeting this month, Delcath put a positive spin on its drug delivery system for melanoma patients, yet failed to convince analysts that there was really a benefit for patients. Other small biotechs like ArQule (Nasdaq: ARQL ) and Celldex Therapeutics also got a poor reception, while larger rival Bristol-Myers Squibb (NYSE: BMY ) basked in the glow of the results from clinical trials on ipilimumab.
Earlier this year, CAPS member stallis admitted an investment in Delcath was a reach, but looks to more positive results from clinical testing.
This was a purely speculative buy for me as the company had/has no revenue. While the stock has run up nicely on the prospects for the liver tumor treatment, if Delcath can extend their process beyond the liver then I believe the stock will soar to lofty heights.
Making the connection
I don't know what to say about Eastman Kodak's future. Quarterly earnings were hard to judge because of one-time infusions of cash. By jettisoning its OLED technology, a potential moneymaker, the company runs the risk of being buried by Hewlett-Packard (NYSE: HPQ ) in the printer market.
But CAPS member KipLargo thinks it has repositioned itself as a smaller, growth-oriented company.
Has been considerably downsized to a company that can now grow. Once it achieves profitability, the stock will be worth $10-12 as it gets valued correctly.
A shining example
Timing is everything, and for VIVUS and its weight-loss drug Qnexa, that might not be a good thing. Just last month, the biotech was on a roll when studies pointed to beneficial results of the therapy and the Street was looking forward to approval from the Food and Drug Administration. Just a few weeks later, though, excitement has turned to angst because the FDA panel will discuss GlaxoSmithKline's (NYSE: GSK ) Avandia, a controversial drug for diabetics that makes some experts concerned about cardiovascular side effects. Analysts are now worried that Qnexa might not make it because of similar cardiovascular concerns.
Yet CAPS All-Star and biotech wonk zzlangerhans is optimistic about Qnexa's shot at approval.
Of the three weight loss drugs vying for FDA approval in the coming year, Qnexa unquestionably has the best efficacy data, especially after Orexigen's embarrassing downward revision of their data for Contrave. With the recent tendency toward warm and fuzzy advisory panels, I think risk/reward is in favor of a positive outcome here.
A chance for scary growth
It takes more than a few All-Star picks and a quick pitch to make buy or sell decisions, so start your own research on these stocks on Motley Fool CAPS to find other opportunities with monster potential.