Tomorrow's Monster Stocks

Recs

6

Stocks that climb to 10 times their original price are rare, but they're not impossible 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 with sound business prospects, achieving phenomenal returns every year. Finding just one or two of these monstrously successful firms can help you establish a winning portfolio.

Stalking the monster
To find tomorrow's monster stocks, we'll enlist the more than 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.

Player

CAPS Rating

Monster Stock

CAPS Score

Recent Stock Pick

CAPS Rating
(5 max)

Sooners11

95.91

First Solar

598.88

Best Buy (NYSE: BBY)

***

adoratium

99.75

China Finance Online

618.98

Intel (Nasdaq: INTC)

*****

tagomi

92.05

First Solar

510.54

Google (Nasdaq: GOOG)

**

pbillions

97.50

First Solar

511.60

Jones Soda (Nasdaq: JSDA)

**

trlckyfool

96.69

Dendreon

501.52

Tesco (Nasdaq: TESO)

****

Of course, this is not a list of stocks to buy -- or, for those monster stocks that our CAPS All-Stars have already found, to sell. Just consider them starting points for your own further research.

Drink up
When your products go up against the likes of Coca-Cola and PepsiCo, you better have something on the ball. Early on, it looked like soft-drink maker Jones Soda would be the next must-have stock of the decade, as not only did its shares explode but so did valuations. However, Starbucks (Nasdaq: SBUX) decided to drop Jones from its shelves, and the logistics of selling to major retailers like Wal-Mart caused costs to rise. It seemed as though the soda company that could suddenly couldn't.

Shares in the drink maker dove as quickly as they rose, and a chart of its stock looks like Mt. Everest. But now it's on the shelves of retail chains like Target, Kroger (NYSE: KR), and Safeway, so the bottler has far more exposure to consumers who might just buy up more of the bubbly stuff, and its stock may once more start going places.

It's no syrupy-sweet expectation that has CAPS investors like ForceMajeure26 believing Jones Soda can outperform the market. Marketing agreements between Jones and sports teams such as the Seattle Seahawks and New Jersey Nets should get sales moving.

The Seahawks and Nets deals are fantastic. ... I think the only problem is that most of these stadiums probably have long term contracts with [Coke] and Pepsi. But then again, new stadiums are starting to pop up around the country. With their miniscule market cap, even if they take 1-2% of market share from coke or pepsi, you're looking at a 10 bagger.

Of course, not everyone thinks keeping up with the Joneses is necessary. CAPS player BobbyDobbs thinks it's living beyond the means of Wall Street's expectations, in this pitch from last October.

I think this company has potential but will experience [significant] speed bumps finding their profitable markets. I predict their current strategy (increasing distributors nationally) will be adjusted to better target their profitable markets. ... I do not think they are capable of living up to the lofty expectations of Wall Street just yet.

A chance for scary growth
Now's the opportunity for you to weigh in on Jones Soda or any of the other stocks these All-Stars see as achieving monster growth. Agree with their views? Tell us on CAPS. If you don't agree, let us know that, too! If you've got an opinion, then this is the place where your voice counts. Let's hear if you think these are tomorrow's monster stocks.

Closed for 15 months – opening 10 days only! Get notified ahead of time as our expert portfolio manager invests $1 MILLION in the best opportunities from across The Motley Fool’s premium investment services. This is the first open since August 2008, by invitation only. Enter email below.

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.

Be the first one to comment on this article.

Compare Brokers

TD AMERITRADE
more info
ShareBuilder
more info
Power E*Trade

more info
Scottrade
more info
Fool Disclosure

DocumentId: 581227, ~/Articles/ArticleHandler.aspx, 11/9/2009 8:58:53 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...

The Must-Read Story on Fool.com
Health-Care Reform: A Tale of Two Chambers

Related Tickers

11/9/2009 4:00 PM
INTC $19.46 Up +0.53 +2.80%
Intel Corp CAPS Rating: ****
JSDA $0.71 Up +0.03 +4.26%
Jones Soda Co. ( U… CAPS Rating: **
SBUX $21.10 Down -0.02 -0.09%
Starbucks Corp CAPS Rating: **
GOOG $562.51 Up +11.41 +2.07%
Google, Inc. CAPS Rating: ***
BBY $41.78 Up +1.54 +3.83%
Best Buy Co., Inc. CAPS Rating: ***
TESO $10.70 Up +0.62 +6.15%
Tesco Corp (USA) CAPS Rating: ****
KR $23.69 Up +0.42 +1.80%
The Kroger Co. CAPS Rating: ****

Community: Investing Wiki

Term Of The Hour

Corporation: A corporation is a legal entity that is legally separate from its owners.

Want to learn more or edit this definition?
Click here to read more!