Tomorrow's Monster Stocks

Stocks that climb to 10 times their original price are rare -- but they're out there and possible to find. Especially when you have Fools for friends.

The market's best stocks include companies that have risen thousands of times in value over the past decade. These aren't penny stocks; they're viable companies that have sound business prospects and have achieved phenomenal returns every year. Finding just one or two of these monstrously successful companies can help you establish a winning portfolio.

Stalking the monster
To find tomorrow's monster stocks, we'll enlist the opinions of the 83,000 investors at Motley Fool CAPS. We've compiled a list of the most successful CAPS players, 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.

Of course, this is not a list of stocks to buy or sell. Just consider them starting points for your own research.

Commit it to memory
With some analysts thinking that NAND memory demand could remain soft until later this year or even next year, it's no surprise that NAND memory maker SanDisk has watched its stock drop. It's been steadily falling from the $60 range and bottomed out at around $25 last week. But the upturn since SanDisk's earnings report suggests that investors might think a recovery is coming sooner than analysts think.

In fact, according to the market analysts at DRAMeXchange, demand for cell phones, MP3 players, digital cameras, and flash drives continues unabated. If so, then growth in the NAND flash market may be better than some expect.

Top-rated CAPS All-Star 12bagger, with a 99.88 player rating, finds that the clashing opinions -- and the resulting volatility in the stock -- have given investors several opportunities to buy at great prices.

SNDK has established a [reputation] as an incredibly volatile, manic-depressive stock. It seems obvious the investing community can't figure out whether the fundamentals of the company are terrific (ongoing huge unit and top-line growth) or terrible (competition driving down selling prices and margins). The latest quarter is no exception to this syndrome: company beats both revenue and earnings estimates handily, but warns of lower unit prices in the future. Result: an 11% kneecapping, with an [analyst] reduction of price target. Here's my take: this same scenario has happened many times before, and the big selloffs have always been good buying opportunities for SNDK. The company remains one of the pre-eminent players in a sector of the [semiconductor] industry that will be growing fast for years.

CAPS investor farmwald, on the other hand, sees the memory maker as being a well-run company but thinks it has a bumpy road ahead.

Well run company with good management and technology in [a] growing, but rapidly commoditizing market. With competitors like Micron (NYSE: MU) and Samsung, it's hard to make a buck. Sandisk and Toshiba probably can do well over time. Sandisk has some new technologies in the works that might be big in a few years.

Of course, not everyone likes the stock. CAPS player sdgsxr, concerned with the company's fundamentals, bet against it last October.

A decreasing deferred revenue account which is a strong indicator of future sales scares me with this stock. Cash is king and Sandisk is not collecting enough of it. The market is tight in this industry and price competition will continue to hurt margins and sales revenues. P/E too high for me.

A chance for scary growth
Now's your opportunity to weigh in on SanDisk or any stocks these All-Stars see as achieving monster growth. Agree with the All-Stars? Tell us on CAPS. If you don't, let us know that, too!

If you have an opinion, CAPS is the place where your voice counts as much as everyone else's. Let's hear whether you think CAPS has uncovered tomorrow's monster stocks.