Tomorrow's Monster Stocks?

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 dozens 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 companies can help you establish a winning portfolio.

Stalking the monster
To find tomorrow's monster stocks, we'll enlist the more than 94,000 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 (Out of 5) 

MakeItSeven

99.95

China Natural Resources

360.50

Solarfun (Nasdaq: SOLF  )

***

tuffsledding

99.93

Mechel (NYSE: MTL  )

307.18

CDC (Nasdaq: CHINA  )

****

pencils2

99.91

Aluminum Corp. of China (NYSE: ACH  )

319.61

Enersis (NYSE: ENI  )

*****

forbes10

99.86

Mechel

345.40

Humana (NYSE: HUM  )

***

metoo105

99.80

Dendreon

335.43

Cal-Maine Foods (Nasdaq: CALM  )

****

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 research.

Circling the wagons
Smaller than many of its rivals, Solarfun is putting the fun back into solar energy. While Chinese alternative-energy companies have enjoyed some hot growth over the past year or so, they took a dip recently as the credit markets have tightened and analysts figured solar companies might have trouble accessing money and would thus cut back expansion plans. Solarfun, however, brightened everyone's day when it reported it shipped three times as much volume as it did a year ago.

It was just that type of earnings report that CAPS All-Star GS751 predicted at the beginning of the month as a means of sending solar-energy companies higher:

All this talk about oil, should send solar stocks soaring on any non-Armageddon. There is a lot of demand for their products. I think an earnings blowout could send the stock prices of solar companies soaring.

That's also what NeroSagetrade was talking about as he penned the top bullish pitch for Solarfun earlier this year. This player forecast it as a possible monster stock in the near future:

Welcome back Solarfun, oh how I missed thee! ... Solarfun is producing huge contracts and is set to grow revenues at over 230% this year and 101% next year... How does 4 times forward [earnings] sound? Just crazy with triple digit revenue growth.

With nearly 600 CAPS investors weighing in on Solarfun, 89% have seemingly come to the same conclusion and rate the company to outperform the market. But that doesn't mean everyone is sold, like crboon, who says in this pitch from the end of January that expansion just won't be as great as everyone predicts:

The production capacity of the actual solar cells is not enough (due to the diffuse nature of sun light) relative to concentrated energy sources, such as coal and oil, to justify any explosions in company value. Although the popularity [and] direction of alternative fuel sources is exciting, the numbers don't justify the recent spike in the industry.

A chance for scary growth
Now's the opportunity for you to weigh in on Solarfun 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, this is the place where your voice counts. Let's hear whether you think we've uncovered tomorrow's monster stocks today.


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