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 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 firms can help you establish a winning portfolio.
Stalking the monster
To find tomorrow's winners, we'll enlist the 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.
|
Player |
Monster Stock |
CAPS Score |
Recent Stock Pick |
CAPS Rating (out of 5) | |
|---|---|---|---|---|---|
|
100.00 |
Emergent BioSolutions (NYSE:EBS) |
138 |
Caraco Pharmaceutical Laboratories (NYSE:CPD) |
***** | |
|
100.00 |
Aluminum Corp of China (NYSE:ACH) |
106 |
China Precision Steel (NASDAQ:CPSL) |
***** | |
|
99.99 |
Bank of America |
183 |
American International Group (NYSE:AIG) |
*** | |
|
99.99 |
China Finance Online |
315 |
Cytori Therapeutics (NASDAQ:CYTX) |
** | |
|
99.99 |
Gannett |
114 |
Radian Group (NYSE:RDN) |
** |
Of course, this is not a list of stocks to buy -- or, for those monster stocks that our CAPS All-Stars have already found, to sell. Just consider them starting points for your own further research into extreme buying opportunities.
In search of Bigfoot
Investors' collective accumulation of hope, based on a few positive economic indicators, is starting to create the appearance that an economic recovery waits on the horizon. While housing is still stuck in a morass, manufacturers are beginning to boost production as customers start to replenish depleted inventories. The stimulus programs put in place around the globe may trickle down before a recovery becomes a fait accompli.
China Precision Steel has felt the impact of the recession as much as any business. Revenue fell 59% in the latest quarter, as the firm experienced an "uncommon decrease" in customer orders, leading to a decline in order volumes across all product lines. Yet the steelmaker remains hopeful that the Chinese government's stimulus package is having the desired effect; China Precision has felt domestic markets strengthen in recent weeks.
The construction of its third cold-rolled steel mill, which the company expects will be completed early in 2010, may arrive just in time to benefit from China's economic recovery. China Precision Steel believes that China's modernization will continue on a "grand scale," positioning the company to increase market share going forward.
Investors such as CAPS member MikeBobulinski see the company operating in a niche market that will soon be inundated with pent-up demand:
Niche market steel company in China. Given China's potential and the fact that [China Precision Steel] is sitting in the middle of a bunch of pent up spending, I am thinking it is only a matter of time before [China Precision] pops back up to near the $10 per share mark. I can afford to wait for that.
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.
