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
Activision Blizzard's problem is not its unplugging the Guitar Hero franchise, though it caused a temporary collapse of the stock, rather it's the addicting nature of its biggest name franchises. My oldest daughter tried to go cold turkey on World of Warcraft, but within a month she was sneaking off to take quick hits at the Lich King. And its Call of Duty powerhouse, Black Ops, may hold a similar allure.
Videogame sales have taken it on the chin recently after having been a bright spot throughout the recession. Industry sales fell 5% in January with console sales faring dropping 8% year over year. But don't think the industry is done. NPD Group results showing lower sales actually only looks at part retail sales and ignores those made online, including used games and mobile apps. Indeed, Electronic Arts (Nasdaq: ERTS ) says 40% of all games are actually bought online now and should surpass retail sales this year.
It's a trend apparent in the digital sales NPD does track. Videogame accessories rose 6% and includes not only controllers and such, but also prepaid cards that are used to buy digital content. If gaming is your fix, the industry looks more like Steven Tyler than Charlie Sheen, and Activision is leading the way. Indeed, CAPS member Shortkiller can't believe the discount the market is giving to investors:
no debt pays dividends has a market edge in gaming software that continues to build. I can't believe its still trading under 12. But the whole market is down so buy some and relax and ride the wave forward.
Head over to the Activision Blizzard CAPS page and see if you can game the system in your favor.
One big nuclear family
CAPS member Bradford86 is going all in not just on China MediaExpress, but the entire lot of beaten down Chinese small cap stocks. From Orient Paper (NYSE: ONP ) and China Biotics to Subaye, Yongye International (Nasdaq: YONG ) , and Fuqi International he's gone on a contrarian tear marking the lot to outperform the broad market averages.
Although this shotgun approach will net him some real losers -- aside from the many allegations of fraud floating around these companies, Fuqi, for instance, is set to be delisted this month if it doesn't get its delinquent 2009 filings in -- it also highlights how much the market has sold off the sector. There are undoubtedly a lot of babies in the bathwater being tossed out the window.
Many of those thinking China MediaExpress is one of the falsely accused believe, as FoolHardyTodd does, the investment made by Starr International, the hiring of Deloitte as its auditor, and the clean bill of health issued by the research analysts at Global Hunter outweigh the claims of shady short-sellers:
I find it MUCH more plausible that Starr's due diligence, Deloitte's due diligence, and Global Hunter's due diligence are correct and that there are no issue with the books. that scenerio seems much more likely than two known outfits that are shorting the stock and didn't actually do any ground work or even communicate with the company (except a dubious phone call) are right.
Take the express train to the Fool's free portfolio tracker and follow along with its progress.
Can you hear me now?
As arguably the most profitable company in the world, Silver Wheaton's unconventional, fixed-cost model of securing silver streams from miners like Goldcorp (NYSE: GG ) is chewing up the market while allowing it to mint a $0.03 per share quarterly dividend.
That kind of shining, world-class performance is what attracts investors like CAPS member kmacattack:
Unbelievable profit margins in the 80 percent plus NET RANGE. This company appears to be a goose which lays golden, no check that, SILVER eggs. They just added dividend payments for the first time which sweetens the pot for investors.
You can add the silver specialist to your watchlist, then head over to the Silver Wheaton CAPS page and tell us if you think providing capital in return for output will still be a winning strategy in 2011.
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.