Stocks that climb to 10 times their original price are rare breeds. 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 that have sound business prospects and achieve phenomenal returns. And they happen to share some common traits: They're small, obscure, and ignored. 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've enlisted the help of more than 135,000 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.
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
It's been a rocky year for cancer-drug developer Cell Therapeutics, which had to turn over the rights to Zevalin to Spectrum Pharmaceutical (Nasdaq: SPPI ) as it rushed to raise cash. And then an arbitrator forced Cell Therapeutics to pay $4 million in expenses to its one-time collaborator. Now it watches Spectrum heat up while it seeks out first-line FDA approval for Zevalin in non-Hodgkin's lymphoma cases.
Yet Cell Therapeutics' own therapy for the illness, pixantrone, is also under FDA consideration. At least one analyst thinks there may be some problems with the drug, but Cell Therapeutics was able to cause the markets to tremble in June with a clinical trial purporting to show that pixantrone was successful at treating aggressive non-Hodgkin's lymphoma. If the FDA approves the drug, as CAPS member xnautis believes will happen, Cell Therapeutics' stock should get a nice injection of adrenaline: "CTIC has just asked the FDA to approve pixantrone for refractory aggressive non-Hodgkin's lymphoma, a form of cancer. It's still very early in the process but a good long-term bet that if the drug is approved, this will give this stock a significant boost."
Even though the stock is cheap, it can't hurt to exercise some caution. Cell Therapeutics needs the approval as soon as possible, since it was forced to once again tap the public markets to raise additional cash, so it could fund working-capital expenses, R&D, and debt reduction.
Not taking wing
Shoemaker Crocs has been an easy target for those believing it's just another fad and expecting it to go off into a corner and wither away. But the company refuses to go quietly. Second-quarter earnings gave Wall Street a plastic shoe-kick in the rear, as losses narrowed sharply to just $0.07 a share, far better than analyst expectations of $0.21 a stub.
Crocs paid off all of its bank debt and increased its retail expansion program as the wholesale side continued to shrink. The company's CEO dismisses those who write Crocs off. By opening up more stores, however, the professional class finds more holes in Crocs' potential than can be found in its shoes -- even though they pros haven't been able to get the story right so far.
Either way, highly rated CAPS All-Star JaysRage can't bring himself to believe the company can recover its former glory.
This business model has already proven to be impossible. The footwear is remarkably durable, but that is a huge problem. Once people buy a pair, they don't buy more. The attempts to market decorations and accessories to go with the shoes have all failed miserably. Great shoes. Comfortable, durable.....it's a shame that it doesn't work as a business model. This is a bankruptcy waiting to happen.
A chance for scary growth
It takes more than a few All-Star picks and a quick paragraph to make buy or sell decisions, so start your own research on these stocks on Motley Fool CAPS. You can 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. And while you're there, weigh in with your own thoughts on whether you think these are tomorrow's monster stocks.
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