Stocks climbing 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 by taking advantage of the market's weaknesses. These aren't penny stocks; they're viable companies with sound business prospects and are achieving phenomenal returns. Finding just one or two of these monstrously successful companies can help you establish a winning portfolio.
Stalking the monster
To find tomorrow's possible winners, we've enlisted the help of the more than 140,000 members of 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 looked at 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 research of extreme buying opportunities.
In search of Bigfoot
Crude oil supplies have fallen for the second week in a row, according to the Energy Department, but inventories are still well above where they normally are this time of the year and are even above last year's levels. In addition, overall demand remains weak and inventories of total refined products such as gasoline, diesel, and home heating oil, are still going up.
CAPS member Relic666 is concerned that Chevron and other oil companies won't bounce back till the spring, while All-Star member crazyalucla likes the company's prospects:
Long term this will only go up. Demand for oil will continue to grow as [C]hina and India continue their path toward greater levels of industrialization.... This trend will not reverse but will exponentially grow as the populations exponentially grow. This company has the most solid managers in all of the business with extensive upstream experience.
Not taking wing
Hope springs eternal in biotech, and Vanda Pharmaceuticals got a boost of sorts when rumors flared again that Novartis might be in the running to purchase its Fanapt schizophrenia drug. Particularly in the wake of Japanese pharmaceutical Dainippon Sumitomo's purchase of Sepracor for $2.6 billion, the hope that consolidation will continue motivates some investors, like CAPS member michaeltbryant.
After all, Vanda's earnings report last month was a disappointment, and a wider loss compared with the year ago sent Vanda's shares down. Analysts had expected that the biotech would have been acquired by now, which is why the rumors helped spark a rally that eventually fizzled. Shares are down more than 11% over the past week, although longtime investors have seen the stock rise more than 2,400% since the beginning of the year.
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. 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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