Tomorrow's Monster Stocks?

Recs

10

Stocks that climb to 10 times their original price are a rare breed -- but they're not impossible to find. Especially when you have Fools for friends.

The market's best stocks include companies that have risen hundreds 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 85,000 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

Tomorrow's Monster Stock

CAPS Rating (5 max)

pencils2

99.83

Aluminum Corp of China

319.61

OYO Geospace (Nasdaq: OYOG)

*****

metoo105

99.76

Dendreon

335.43

Focus Media (Nasdaq: FMCN)

*****

Uberchota

99.56

TBS International

306.33

Graham (AMEX: GHM)

*****

goldcache

99.22

JA Solar (Nasdaq: JASO)

314.39

Omnicell (Nasdaq: OMCL)

***

BfloBull

99.27

Mechel

301.31

Yamana Gold (NYSE: AUY)

*****

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.

Focusing on potential growth
Think of it as China's modern-day answer to Burma Shave advertising: Focus Media provides advertisers with hundreds of thousands of customized LCD displays, poster frames, and outdoor billboards in shopping malls, elevators, and hospitals across dozens of Chinese cities. It is one of the largest out-of-home advertisers, meaning it dominates the ad market designed to reach consumers when they're away from home. That's in contrast to broadcast and Internet advertising, which primarily attempts to reach consumers when they're engaged in at-home activities like watching TV or surfing the Internet.

Although Focus Media currently dominates the landscape, there are a few smaller competitors, like VisionChina Media (Nasdaq: VISN), that are challenging Focus Media, and several advertising markets where no one has a commanding lead, such as mobile TV advertising, where local government dominates. Yet Focus Media is busy inking deals with partners and acquisition targets to expand its supremacy in the market, leading some analysts to view it as perhaps one of the best international investment stories around.

Fully 700 investors have weighed in on the Chinese advertising giant and only 14 think it's a dim bulb, marking it down as an underperform. Top-rated CAPS All-Star nrvbrokerage, with a 96.89 player rating, viewed Focus Media as a long-term play on China's growing middle class, and notes that analysts see outsized growth potential for the next five years.

Great LT China play. Growth might be slowing in China in the near term, but this country still has a lot more growth potential. Focus Media is a toll bridge in China. Companies must reach their target cutomers with advertisements and Focus Media is the best way to do that.

Another CAPS All-Star, jester112358, agrees that the growth prospects seem to be in place, but cautions that the market valuation is a little rich, meaning the assumptions fueling it have to "play out properly."

A chance for scary growth
Now's the opportunity for you to weigh in on Focus Media 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! This is the place where your voice counts just as much as everyone else's. Let's hear if you think these are tomorrow's monster stocks that have been uncovered today.

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Related Tickers

3/19/2010 4:00 PM
OMCL $14.66 Down -0.22 -1.48%
Omnicell, Inc. CAPS Rating: ****
GHM $19.02 Down -0.43 -2.21%
Graham Corp CAPS Rating: *****
OYOG $45.49 Down -3.36 -6.88%
OYO Geospace Corp CAPS Rating: *****

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