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 winners, we'll enlist the more than 115,000 monster trackers at Motley Fool CAPS. We've compiled a list of the most successful CAPS members, 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 Member Rating

Monster Stock

CAPS Score

Recent Stock Pick

CAPS Rating (5 max)

LurkyLurky

99.98

Baidu.com (Nasdaq: BIDU  )

209.88

Dolby (NYSE: DLB  )

*****

MLGTrader

99.96

Ambak Financial (NYSE: ABK  )

257.73

Marathon Oil (NYSE: MRO  )

****

alvinbentley

99.96

Mechel

205.88

Alon USA Energy (NYSE: ALJ  )

****

forbes10

99.93

McMoRan Exploration

153.75

Amylin Pharmaceuticals (Nasdaq: AMLN  )

**

Source: Motley Fool CAPS. Score is by how many percentage points the pick is beating the S&P 500 since the time of being 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, sell. Just consider them starting points for your own further research of extreme buying opportunities.

In search of Bigfoot
An investor panic over an FDA report that a number of patients taking Amylin Pharmaceuticals' Byetta, a drug it co-markets with Eli Lilly (NYSE: LLY  ) , had died of pancreatitis turned into a rout when the companies announced an additional set of deaths. Yet investors like CAPS member gillet01 are aware of the risks associated with the drug, but also understand the benefits far outweigh the dangers.

Amylin is a bit of a one trick pony, but that pony Byetta (and it's soon to come LAR longer acting version) is a first in class drug treats one of the fastest growing diseases in the world, diabetes, with a major side effect of weight loss... The price has come down due to the reports of a number of deaths of patients on Byetta from pancreatitis. Time will tell whether this increase is directly related to Byetta, or merely a reflection of the patient pool being treated. What is clear is that even if there is an increased risk of pancreatitis, it is far outweighed by the overall decrease in morbidity by taking the drug. What isn't clear is how the hype may negatively effect usage.

Marathon Oil is representative of what may be new thinking that Big Oil has to break itself up into smaller pieces. CAPS member tscheiblich in particular feels that if it concentrates on production, it will ultimately do well even if the trip there is not smooth.

They're a pretty good bargain right now. If they are able to capitalize on the new estimates in North Dakota and the desire to emphasize domestic energy production, it should be a good long term play in the energy industry. It'll be a bumpy ride along the way, though.

Possessing a name synonymous with audio quality, Dolby Labs is expanding into areas outside its traditional format: HDTV and 3-D cinema, for instance. Top-rated All-Star CAPS member ll0o0ll sees this Stock Advisor recommendation as a prodigious producer of profits.

Dolby is a diversified way to play growth of electronic devices without exposure to pricing pressure in the industry. Inflation related covenants will help to increase top line in a high inflation environment we are facing. The company will also benefit from coming transformation of cinema screens to 3-D, adoption of digital TV, growth in game consoles and PCs powered by Vista Premium editions. There are also opportunities outside the traditional sound business (Dolby Contrast, Dolby Volume etc.)

A chance for scary growth
It pays to start your research on these stocks on Motley Fool CAPS. Read a company's financial reports, scrutinize key data and charts, and examine the comments your fellow investors have made, all from a stock's CAPS page. Then weigh in with your own thoughts and let us hear if you think these are tomorrow's monster stocks that have been uncovered today.

Eli Lilly is a Motley Fool Income Investor selection. Baidu.com is a Rule Breakers pick. Dolby Laboratories is a Stock Advisor recommendation. Try any of our Foolish newsletters today, free for 30 days.

Fool contributor Rich Duprey owns shares of Dolby 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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