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 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 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, sell. Just consider them starting points for your own further research of extreme buying opportunities.
In search of Bigfoot
VoIP supplier 8x8 has built a solid foundation and profitable business model by delivering hosted VoIP and unified cloud communications services to businesses. Like Skype and Vonage (NYSE: VG ) , it has been building support by integrating VoIP, fax, Web conferencing, and chat into one solution for small- and medium-sized businesses.
And any time Google (Nasdaq: GOOG ) enters a service arena, rivals need to take notice, but its Voice service has yet to offer anything that stands out. While the professional analysts have yet to discover 8x8, the CAPS community is weighing in favorably. CAPS member jkubinak1339 says it offers a stellar service the likes of which the big phone carriers are incapable of matching.
8x8 has found a niche for itself in that they can service [small businesses] that AT&T and [Verizon] cannot. 8x8 service is agnostic-they easily provision companies that have displaced workers in [different] states or countries. One of 8x8's customers for example has 150 [extensions] in 26 different countries. All they had to do was plug their phones into an Internet connection and they were all on their enterprise class phone network.
While 8x8 excels, the stock suffered a setback when a director resigned last month after a spat with the CEO over management and leadership style. Shares now trade nearly 25% lower than they did just a month ago, meaning investors may be able to invest in this growing company at a discount.
If 8x8 is still too obscure for you, just click to add it to your watchlist and have all the Foolish news and analysis gathered for you in a single place.
A gold standard
When you buy shares of CDC, you're actually buying a series of companies, including the enterprise software company CDC Software (Nasdaq: CDCS ) , as well as various IT services, online games, and the Internet portal China.com. CDC says it's using a multipronged effort to unlock shareholder value, including buying back shares and engaging in mergers and acquisitions.
It also wants to pay a dividend, but it's mired in a lawsuit with Evolution Capital Management, which it claims breached non-disclosure agreements and interfered with its business relations. CDC wants at least a $295 million settlement. However, because Evolution obtained a preliminary injunction against CDC, it's precluded from paying a dividend.
CAPS All-Star FleaBagger believes the software company is undervalued, as do most of those rating CDC. Out of more than 850 CAPS members weighing in on its prospects, 95% think it will outperform the market.
You can weigh in yourself on the CDC CAPS page, and add the stock to the Fool's free portfolio tracker to follow along.
It seems doubtful that office supply powerhouse Staples (Nasdaq: SPLS ) would be interested in buying out troubled rival Office Depot because it's still integrating the huge purchase of Corporate Express, made two years ago. Besides, Staples eyed its competitor once before, back in 1997, but regulators rejected the union for anticompetitive reasons.
Still, after Office Depot implemented a new change-in-control policy for a few of the top brass, speculation began again that someone is interested in buying it. That's enough for CAPS member Twirpy, who wouldn't say the office supply retailer is a good long-term play. You can offer your own opinion on the Office Depot CAPS page.
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.