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 phenomenal returns. Finding just one or two of these monstrously successful companies can help you establish a winning portfolio.
Stalking the monster
To try to find tomorrow's winners, we've enlisted the help of more than 140,000 monster trackers at Motley Fool CAPS. We've compiled a list of the most successful CAPS members, dubbed All-Stars, who have picks that 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 previous monster stocks from our CAPS All-Stars -- sell. Just consider them starting points for your own further research of extreme buying opportunities.
In search of Bigfoot
With more than 200 campuses and 400,000 students, post-secondary education provider Apollo Group is at the head of its class. No wonder. With unemployment hovering above 9% and economists expecting it to go higher still, now is a great time to go back to school and enhance your skills or get new training for the career you've really wanted.
The education company reported that for the quarter ended in June, there was a 22% jump in enrollment, leading to a 26% increase in revenues and its first billion-dollar quarter. Nor is it alone in teaching the market some new things. DeVry (NYSE: DV) also had double-digit gains in new student enrollment in each of its schools, while Strayer Education (Nasdaq: STRA) reported a 24% increase.
CAPS All-Star zgelfan2 likes Apollo Group.
The first three quarters of their fiscal 2009 have been a very good year for this company. High unemployment means people are going back to school. Seems to have been unjustly left behind in the recent market rally, as posted earnings have been very good.
While Strayer shares were up 16% in the past six months and Lincoln Educational Services rose 31%, Apollo Group shares declined 7%. Apollo Group has had a better month, though, because a Government Accountability Office report on the industry was not as bad as had been expected. It has been years since the for-profit education industry failed an Education Department investigation of its practices, but the rather mild report from the GAO won't stop politicians from grandstanding and holding hearings on the "extremely troubling" findings.
One of those concerns was the default rate of for-profit education students. It was more than twice the rate at public colleges after four years and more than three times the rate at private non-profits. While total student receivables rose less than 8% year over year at Apollo Group -- not unexpected considering the enrollment bounce it has enjoyed -- it also experienced a 77% increase in its provision for uncollectible tuition.
Nevertheless, CAPS All-Star zk116 finds Apollo Group an otherwise financially fit institution.
Very solid educational company, including u of phoenix. Sales growth is substantial enough at 18% and it is not having trouble reaching the bottom line. Also, this company is turning profits in investments and using its cash to buy back stock in streams of confidence.
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.
“The Next Great Investment”… That’s how a top global investor describes India’s potential. On Nov. 28, The Motley Fool’s Tim Hanson returns to India to prove it. Follow along in real time and get his TOP pick first (Hanson returned from China in July with a stock that’s up 169%!). Enter email below.
Terms & Conditions
RSS Headlines
Fool UK