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.
Recent Stock Pick
|kidderpeabodyny||99.51||Ford||401.64||Ikanos Communications (Nasdaq: IKAN )||*****|
|translator999||99.99||Teck Resources||1059.04||Savient Pharmaceuticals (Nasdaq: SVNT )||***|
|AndreylikesMTL||99.91||Las Vegas Sands||1404.10||Smurfit-Stone Container (Nasdaq: SSCC )||****|
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
Broadband semiconductor maker Ikanos Communications has seen a steady drop-off in its ADSL business, but strong improvement in its core VDSL line. Asia remains the key to Ikanos' future, accounting for more than half of its revenues, though Europe is growing in importance, with Alcatel-Lucent (NYSE: ALU ) being a major customer. Despite a secondary offering of 11 million shares at just $1.05 each that will likely have Ikanos struggling as it absorbs it, it's also put the company in a more financially stable position.
Tight semiconductor and broadband competition from Broadcom (Nasdaq: BRCM ) and Marvell Technology (Nasdaq: MRVL ) has led to pressure on average selling prices and market share, but 98% of the CAPS members rating Ikanos believe it will deliver market-beating results.
Why not head over to the Ikanos Communications CAPS page and tell us why it will still be able to dial up growth?
A good reception
Savient Pharmaceuticals fell off the ledge after it said it couldn't find a buyer for the company. Despite having gained FDA approval for its gout treatment, Krystexxa, pharmaceuticals rumored to be potential buyers, like Pfizer and Bristol-Myers Squibb (NYSE: BMY ) , failed to take the bait.
Savient still plans on bringing Krystexxa to market, alone if needs be, which would give possible suitors ample time to see how well the therapy works. Although Savient trades at significantly depressed values, possibly making it one of the biotech sector's best values, Krystexxa's future success will make any possible buyout offer a more expensive proposition than if one was made now.
That's the scenario CAPS member Brisking is expecting to see play out:
When Savient get their sales team together and prove that the gout drug is a winner, they should become a play once again for the major pharmas.
Only you can decide whether the biotech is right for your portfolio. Add it your watchlist and have all the Foolish news and analysis about the stock aggregated in one place.
Although the market is rallying higher today and signs of a strengthening economic climate make the feared double-dip recession less likely, there's enough concern in various pockets of the market that should continue to weigh on a full-fledged recovery.
New home sales plunged 8% in October and durable goods orders fell sharply, dropping 3.3% and calling into question the strength of the manufacturing sector. If manufactured goods are weakening, we might expect to see packaging companies like International Paper and Smurfit-Stone Container getting sliced. So long as businesses and consumers are buying, we'll see them propped up, but cuts to either will cut into paper products, too.
Although few CAPS members have weighed in on Smurfit-Stone, the overwhelming feeling is that it will not turn into a soggy mess. Join with them on the Smurfit-Stone Container CAPS page and let us know what you see in its future.
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.