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 hundreds of percent 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 110,000 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)

rudolphsteiner

100.00

Clayton Williams Energy (Nasdaq: CWEI  )

327.00

Sociedad Quimica y Minera (NYSE: SQM  )

*****

TMFEldrehad

99.97

Walter Industries (NYSE: WLT  )

374.39

Hurco (Nasdaq: HURC  )

*****

RonChapmanJr

99.97

Fording Canadian Coal (NYSE: FDG  )

389.77

Allis-Chalmers Energy (NYSE: ALY  )

*****

MakeItSeven

99.96

China Natural Resources

360.50

Advanced Battery Technologies (Nasdaq: ABAT  )

**

*CAPS Score is the number of percentage points a pick is beating (lagging) the S&P 500 from the time it was chosen.

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 this a starting point for your own further research.

Power up your portfolio
Two major contracts have propelled polymer lithium-ion battery maker Advanced Battery Technologies forward this year; its stock soared back in March, though it has since settled back down. It's gotten a recharge lately, though, as demand for the company’s batteries has created a backlog of orders for almost the next two years, helping the company report record revenue and profit in the first quarter.

As a New York-based Chinese company, Advanced Battery Technologies is attracting investor attention. But CAPS players like ennui understand that a healthy dollop of caution is still necessary when plunking real dollars down on it:

They will be powering electric buses, cars, and every kind of gizmo you can imagine. This ... is the kind of speculative play that is worth a shot, in my book. A small shot--one that can't lose you much money if it bombs out, but which can pay off nicely if the technology catches on.

Planting the seeds
Another foreign company that is high on investors’ buy lists, but isn’t quite so speculative, is fertilizer maker Sociedad Quimica, which has been a beneficiary of the surge in commodity prices. Its potassium nitrate fertilizer is cheaper than potash, and the company is said to provide about half of the world's supply. Moreover, it is also the world's largest producer of lithium, which -- as Advanced Battery knows -- could be a big part of the solution to the world's energy problems if lithium-ion batteries go big.

CAPS investor donktastic feels Chemical & Mining Co. of Chile, as it's more commonly known, will profit from the tag-team duo of fertilizers and batteries to succeed:

Looks like a well diversified company that produces products which are in high demand like potassium nitrate (fertilizers), lithium for batteries, and other various chemicals. I think there's only upside. We'll see they can become part of the solution for the automotive industry getting off of gasoline/diesel by taking advantage of the rechargeable and fuel cell market.

A chance for scary growth
Now you can drill down and fill us in on the stocks the All-Stars predict will achieve 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 just as much as everyone else's. Let's hear whether you think these are tomorrow's monster stocks, uncovered today.

Hurco is a Motley Fool Hidden Gems recommendation. Try any of our Foolish newsletters today, free for 30 days.

Fool contributor Rich Duprey owns shares of Walter Industries but does not have a financial position in any of the other stocks mentioned in this article. You can see his holdings here. The Motley Fool has a disclosure policy.


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