Tomorrow's Monster Stock

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 180,000 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.

Player

CAPS Member Rating

Monster Stock

CAPS Score

Recent Stock Pick

CAPS Rating (out of 5)

cheev 96.09 Universal Display 414.91 Imperial Sugar (Nasdaq: IPSU  ) *****
EgisCodr 94.51 Saga Communications 447.42 Medallion Financial (Nasdaq: TAXI  ) *****
timd118 96.74 Complete Production Service 780.77 Paramount Gold & Silver (NYSE: PZG  ) ***

Score is by 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.

A sweet opportunity
A judge's order last year threatened the U.S. sugar supply because he ruled that the Agriculture Department needed to conduct an environmental-impact statement before Monsanto (NYSE: MON  ) could continue producing its genetically modified sugar-beet seed. Sugar beets account for more than half of the U.S.'s sugar supply, with the balance coming from sugar cane. Monsanto's GM seeds make up 95% of the sugar beets that are planted, meaning the industry was going to be devastated by the ruling and consumers would experience sticker shock at the store.

Agriculture overruled the judge (can they do that?) and allowed the seeds to be planted anyway, but that hasn't stopped prices from rising. Imperial Sugar reports price increases of more than 21% from the year-ago period, but its costs for sugar cane rose 34%, while in the aftermath of Ag's go-ahead order, there was a 6% jump in sugar beet acreage planted this year, adding to the pricing pressures and limiting how much it could raise its prices. Add in a flood of Mexican sugar, and it added up to a loss of $1.35 per share last quarter when analysts had been expecting a profit of $0.46 a share.

Highly rated CAPS All-Star member JakilaTheHun sees it like this on Imperial: "It could easily have another 20% or even 50% to fall if things don't get turned around soon, but I think at some level, it becomes so cheap that it's a buy. I'm just not sure that we're there yet."

Satisfy your sweet tooth on the Imperial Sugar CAPS page and let us know whether you think this company will give you a sugar high.

In search of Bigfoot
New York City Mayor Michael Bloomberg will have just as much success busting the wallets of commuters as in breaking city gridlock after raising tolls on bridges and tunnels by 50%. If you're interested in seeing the crime and grime that go hand in hand with Gotham City, it will now cost you $12 for the privilege.

That's going to make a taxi medallion even more valuable, since people who can't avoid going in will probably keep their cars at home, taking mass transit in or opting for a ferry ride across the river. They'll probably need to hail a cab afterwards, so we'll probably see those fares go up soon, too -- all of which will keep Medallion Financial growing.

Medallion finances the purchase of a taxi medallion, which can set you back anywhere from $686,000 to $975,000. Interestingly, Medallion was able to score bailout financing under TARP, which it paid back this summer. Regardless, CAPS member rmackle1 sees a white-knuckle ride for Medallion from here: "I am heavily involved in the ground transportation industry in NYC. I believe that firms involved in the finance of taxicab medallions and vehicles are about to break out from the grips of the recession and move substantially higher in the coming years."

You can follow along by adding Medallion Financial to your watchlist and see whether it can hail a profitable ride.

Delivering solid growth
There's gold in them hills, and Paramount Gold & Silver continues to prove it has an uncanny knack for finding it. While Coeur D'Alene Mines (NYSE: CDE  ) still objects to the work Paramount's done on its San Miguel project in Mexico, which runs adjacent to its own Palmarejo deposit, the miner added to its fortunes a mother lode of gold and silver in Nevada at its recently acquired Sleeper mine.

With gold currently trading north of $1,790 an ounce and silver just under $40 an ounce, Paramount's new resource estimate for Sleeper showed prodigious amounts of both metals, with 2.6 million ounces of measured and indicated gold and another 25.3 million ounces of silver. Add in another inferred 1.1 million ounces of gold and 8.2 million ounces of silver, and you have a lucrative project on your hands.

Highly rated CAPS All-Star member TSIF likes this exploration miner but is wary of buying into a resource estimate that many times ends up getting scaled way back. Investors in Rubicon Minerals (NYSE: RBY  ) , for example, most recently suffered shock when the gold miner revised downward estimates for its Red Lake district mine. Says TSIF: "I'm just getting too familiar with the pops on the resource estimate announcements and then the decays, that I'd rather red thumb the pop and force myself into a vested interest in the stock price for the next few weeks before further assessment."

But you can tell us on the Paramount Gold & Silver CAPS page whether you think investors will be in for a similar rude awakening as the one that confronted Rubicon.

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 marvel at the range of opinions there.

Fool contributor Rich Duprey holds no position in any company mentioned. Check out his holdings and a short bio. Motley Fool newsletter services have recommended buying shares of Universal Display and creating a synthetic long position in Monsanto. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


Read/Post Comments (1) | Recommend This Article (3)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On February 12, 2012, at 10:05 PM, XSIVE4544 wrote:

    IPSU. What do you think about it being tomorrow's Monster Stock and soaring?

Add your comment.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 1556657, ~/Articles/ArticleHandler.aspx, 8/30/2014 10:47:29 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement