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
Despite China raising interest rates twice in six weeks in an attempt to gain control over rising inflation, its economy surpassed most growth estimates in 2010 and seems likely to continue growing strongly for the foreseeable future. As a result, Australia is expecting demand for its coal and iron ore to be strong for the next 15 years. Arch Coal agrees with that assessment, saying the next decade could be one of the best ever for coal.
Arch and Peabody Energy (NYSE: BTU ) are just two coal companies that are trying to find an easier path to get their coal into China's hands. Right now Arch ships some of its coal through British Columbia for export, but if its prediction of seeing exports rise from 5% of its total revenue to 20% within the next 20 years holds true, it's going to need the proposed Longview coal terminal in Washington state, in which it recently bought a 38% stake. Peabody also wants a West Coast terminal to send coal across the Pacific.
In the wake of the huge hurricane that hit Australia and flooded coal mines, CAPS member MajorBob04 thinks there's a big opportunity to capture a lot more of that demand: "Arch Coal will rebound when people realize the impact of the floods in Australia-limited coal supply."
The CAPS community remains solidly behind the coal miner, with 96% of the more than 1,300 members rating it believing it will outperform the market. Head over to the Arch Coal CAPS page to mine for other opinions on its future.
One big nuclear family
With uranium almost doubling after having sunk to lows of just $40 a pound, China is also serving up an opportunity for the nuclear industry. Miners such as Cameco (NYSE: CCJ ) and Denison Mines (AMEX: DNN ) are enjoying the resurgence in the commodity's price, which currently trades at around $73 a pound. And as much as coal miners are counting on further coal demand from China, uranium miners are looking for the Chinese to offset the emissions from coal-burning utilities by using more nuclear power.
According to one industry consultant, China is ready to build 245 new nuclear reactors and spend more than $500 billion to do so. You can expect other industry giants like Westinghouse and Areva to grab their share, and Cameco recently agreed to supply 29 million pounds of uranium to a major Chinese nuclear reactor builder and operator through 2025.
CAPS members are looking for engineering giant Shaw Group to benefit as well, as 94% have rated the stock to beat the market. Shaw has been working with China to help it fully embrace its nuclear future, and you can follow its progress by adding Shaw to the Fool's free portfolio tracker.
The demand for uranium will likely also boost the prospects for uranium enrichment specialist USEC. CAPS member mitleg acknowledges it might have some financial issues but thinks the government won't allow it to fold.
Absolutely a speculative stock. However, they have the leading position in the US. It seems that the Dept. of Energy won't let it sink under the weight of its debt. With oil prices poised for a rebound, and nuclear becoming more attractive, I see room for growth. Plus, it is very cheap in price to book and price to sales.
China is responsible for nearly half of the reactors under construction today in the world, and USEC will be looking to market its enriched uranium around the globe. An investment group that China's sovereign fund has invested in wants to partner with USEC in that endeavor, and Babcock & Wilcox (NYSE: BWC ) , whose modular reactors can go up quickly at less cost than conventional units, is also making a strategic investment in USEC.
Add USEC to your watchlist, then head over to the USEC CAPS page and drill down for further insights on 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.