Tomorrow's Monster Stock

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 that 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 winners, we've enlisted the help of more than 160,000 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.

Score is how many percentage points by which that pick is beating the S&P 500.

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
Diversifying revenue streams can be an important component of a company's success because it's a cushion when one particular area falters. Going off on an extreme tangent the way Qiao Xing Universal Telephone has done, though, makes me wary of wanting to put my money into it, even if the new line of work sounds profitable.

Qiao Xing once had designs on becoming a big mobile handset seller in China, but somewhere along the way (2007, to be exact), it decided it wanted to be a natural resources company instead, so it acquired a copper and tin mine. It spun off its handset subsidiary Qiao Xing Mobile (NYSE: QXM), divested its lower-end mobile phone business last November, and is looking to purge itself of the higher-end business sometime this year. It has gone on to purchase a molybdenum mining company and is looking to make further acquisitions in the industry soon.

China has a voracious appetite for natural resources, it's true, and CAPS All-Star member jlmjlm77 likes that the company is no longer a phone company, but such dramatic changes in direction leave me cold. Why not head over to the Qiao Xing Universal Telephone CAPS page (I guess we'll get a new name sometime) and let us know what you think.

A deep breath
So far, Telestone Technologies seems intent on maintaining its business of providing China's telecoms with wireless communications equipment. And why not? China Mobile, China Unicom, and China Telecom (NYSE: CHA) have given it a profitable platform for growth as they rapidly expand their 3G networks. Earnings rose 57% in the latest quarter as revenue doubled for Telestone, and it's looking for a 50% jump in sales in 2010.

CAPS member sprint17 earlier this year said Telestone was doing for China what Verizon (NYSE: VZ) had done for coverage here in the U.S.

This company is poised to win big in the China market, they sell their products to the three largest cellular communications companies in China and are in the process of making China's 3G map look like Verizon's (at least in the East, Western China is desolate). The huge run up in the price of this stock is not coincidence, it is because this stock appears to be holding a full house with a flush on the table.

A nice tailwind
Maybe Blockbuster needs to become a mining company, because the movie rental business hasn't been exactly profitable for it. It might file for bankruptcy protection and it has a $1 billion debt load hanging over it. The announcement that it was postponing its annual meeting for a month to give it more time to avoid getting kicked off the New York Stock Exchange actually gave investors hope that it might strike gold somewhere.

As the bricks-and-mortar business fades away from the onslaught of movies by mail or streaming video, Blockbuster is slowly transforming itself into a kiosk business along the lines of Coinstar's (Nasdaq: CSTR) Redbox. Whether that will be enough to stave off a collapse remains to be seen, but more than half of the 1,325 CAPS members who rated Blockbuster don't seem to think so, so they have rated it to underperform the market.

A chance for scary growth
It takes more than a few All-Star picks and a quick pitch to make buy or sell decisions, so start your own research on these stocks on Motley Fool CAPS.