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.
Recent Stock Pick
|pmg527||98.28||Expedia||215.94||Ford (NYSE: F )||****|
|mreedpgh||92.65||Chicago Bridge & Iron||566.61||Green Mountain Coffee Roasters (Nasdaq: GMCR )||**|
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.
Focusing on the future
Europe's financial unraveling should be topmost in investors' minds, but we also shouldn't forget about China, which is also seeing an economic slowdown. While U.S. economists might give their eyeteeth to see industrial output in the U.S. grow by 9%, the numbers belie the fact that it came in well below consensus expectations.
It could play a large role in how successful Ford is in reintroducing itself to the Chinese consumer. As the Fool's auto guru John Rosevear highlights, the Ford Focus has been a critical and consumer success and the launch of the vehicle in Asia saw 10,000 vehicles sold in 10 days. General Motors (NYSE: GM ) has been counting on China to be the lynchpin of its recovery ever since the bailout, and it also reported robust April sales.
Overall vehicle sales in China are down 3.4% in the first quarter, but U.S. automakers have benefited from a perception of higher quality. That's some turnaround for the industry, and Ford -- which hopes to introduce some 15 models into the country by 2015 -- ought to be a big beneficiary of this acceptance. As CAPS member Kozy72 points out, "Car companies are again making money. This will benefit Ford."
It's not so much Green Mountain Coffee Roasters is suffering a crisis of confidence, it's that it's just getting harder to believe the growth story anymore. Its patents are expiring later this year, and despite having agreements in place with both Starbucks (Nasdaq: SBUX ) and Dunkin' Brands (Nasdaq: DNKN ) to market K-Cups in their name, there's no reason to believe third party K-Cup makers won't soon be showing up en masse. And doubts about its sales channel haven't abated since David Einhorn went public with his concerns.
Adding to the confusion, Green Mountain's founder and chairman was just removed from his position for selling $125 million worth of Green Mountain stock in violation of company policy to cover a margin call. He had borrowed against his company's stock, and CAPS member NHWeston102 wonders if management is just Chesapeake Energy's Aubrey McClendon "on caffeine." McClendon has suffered through his share of margin calls and doubts about his financial acumen after borrowing against company assets.
And all this followed the revelation the company's CFO was passing herself off as a CPA when in fact her certification had expired.
More than six months ago, I rated the coffee maker on CAPS to underperform the market averages because of the mounting competitive pressures, and management hasn't done much in the ensuing time to bolster confidence 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 marvel at the range of opinions there. While you're at it, see the one stock The Motley Fool thinks is changing the face of business. The new special free report highlights the only tech stock you'll ever need to own, and it's yours free!