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 seen 1,000% jumps in value over the past decade. These aren't penny stocks: They are 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 winners, we'll enlist the more than 120,000 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 |
Monster Stock |
CAPS Score |
Recent Stock Pick | ||
|---|---|---|---|---|---|
|
99.97 |
First Solar |
547.09 |
ReneSola (NYSE:SOL) |
**** | |
|
99.85 |
Navteq |
163.32 |
Evergreen Solar (NASDAQ:ESLR) |
*** | |
|
99.45 |
James River Coal (NASDAQ:JRCC) |
410.70 |
General Electric (NYSE:GE) |
**** | |
|
99.29 |
Brazil Telecom (NYSE:BTM) |
137.85 |
Alcoa (NYSE:AA) |
**** | |
|
98.51 |
The9 |
461.61 |
Syneron Medical (NASDAQ:ELOS) |
***** |
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
Like those who bought Microsoft or Wal-Mart at their IPOs and held on for the long term to earn great wealth, CAPS member LondonMatt thinks that the General Electric will bring the same opportunity to a new generation of investors:
We'll all be telling our grandchildren about buying GE at $15 a share with an 8% yield. Despite the recent volatility, this is one to hold onto for the long haul. Healthy dividend in the short term.
Though there is work to be done in the financial part of the business, GE still maintain (and have had reconfirmed) their AAA credit rating. Very well positioned for the Obama growth agenda as one of the biggest players in the green energy space.
Buy it, hold it, and try not to watch the stock price for the next six months. You'll be rewarded in the end.
It might not pack the same punch for storied long-term growth as GE, but CAPS member vitrified feels that Evergreen Solar has just as much potential for rewarding shareholders, as alternative fuel incentives gain greater traction:
Their technology offers strong potential for excellent returns at this price (beaten down with what I believe is a temporary overshoot drop in oil prices). Company stands to benefit from increased alternative-energy investment under Obama administration.
Top-rated CAPS All-Star jdawg1847 takes a look at aluminum producer Alcoa and realizes that while it could go lower, it's valuation at this point suggests it's going to be worth a lot more in a few years' time:
AA @ $9 is a steal. Book value over $18, cash per share $1, trailing P/E 4 and forward P/E 10. It could go lower, but in 5 years this stock will be MUCH higher.
A chance for scary growth
It takes more than a few All-Star picks and a quick paragraph to make buy or sell decisions. 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.
