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 170,000 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 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
When a $7 billion company can jump more than 50% in one year, as sound specialist Dolby Labs has done, you might consider it a "monster stock" already. It's also up 13% since I picked it last month as a core stock for your portfolio that you can set and forget for 10 years.
Now as much as I love me some Dolby, as an investor I can't ignore the points my colleague Rich Smith has highlighted, such as it no longer being the screaming buy it was prior to its run-up. At 27 times trailing earnings, it looks pricey, but Dolby has pretty much always carried a premium and has never really traded at much of a discount.
New opportunities like streaming video from Netflix (Nasdaq: NFLX ) -- the disc-less upgrade for the PlayStation incorporates Dolby Digital Plus surround sound -- along with an anticipated digital signal upgrade for TVs in China, will allow Dolby to continue dominating the sound market as it has done for decades.
Highly rated CAPS All-Star member jamespeer is blown away not only by what Dolby has done in the past, but what it will be doing in the future:
Everything and I mean everything which uses audio utilises Dolby technology, and "WOW" is the only word I can find to describe their financials. Huge net margins mean that cash pile just keeps on growing! I believe this is a great growth stock and the recent dip provides a brief window of opportunity to buy...
Only you can decide whether Dolby is right for your portfolio. Add it your My Watchlist page and have all the Foolish news and analysis about the stock aggregated in one place.
A good reception
With Federal Reserve chairman Ben Bernanke doing his best to debase our currency, gold and silver have soared into the rarified airs of the stratosphere. Sure, they gave back a little bit last week, but after the G20 countries meeting in Seoul agreed to refrain from "competitive devaluation," the dollar sank and commodities were on the march again.
Gold, of course, gets top billing in the news, but silver and its miners like Hecla Mining and Coeur d'Alene Mines (NYSE: CDE ) have been enjoying the 30-year highs it recently hit. There is in fact a long list of stocks with silver linings, including CAPS favorite Silver Wheaton (NYSE: SLW ) .
CAPS investor richsaylor says a mining stock like Hecla doesn't always follow the script, but it's positioned to reap the benefits regardless.
Although mining stocks don't necessarily follow the market, in this case it's an old, established company, well- managed, with lots of resources, and the price to produce is below - becoming even more below by the day - commodity price. What more is there to say? I'm surprised share value isn't higher!
With no end in sight for the dollar's decline, you can mine this silver stock's potential on the Hecla Mining CAPS page.
We pretty much figured that with the "death" of WiMAX, chip makers like TriQuint Semiconductor would be bouncing back, though we didn't necessarily think it would happen so soon. But the coattail of Apple (Nasdaq: AAPL ) and its iPad has been durable enough to carry along a number of tech stocks and with sales now projected in the gazillions, we're likely to see TriQuint's own numbers improve exponentially.
CAPS member rdwolf34 sees the chip maker having all the G's covered as well as the smartphone market and joins the other 97% of the CAPS members rating TriQuint to outperform the broad market averages.
You can tell us on the TriQuint Semiconductor CAPS page whether it also has dotted its I's and crossed its T's, or whether it's time to sell.
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 and find other opportunities with monster potential.