Ah, skepticism, how I love thee.

We rebel investors at Motley Fool Rule Breakers believe multibaggers in the making, while not often cheap by the numbers, are always misunderstood. As such, they face extraordinary skepticism, which, in turn, makes them excellent value stocks.

More are out there. Each week, right here in this column, we'll hunt them down. Grab your keyboard.

What one stock can do for you
Really, it's worth your time. One home run stock can make all the difference to your portfolio.

Just ask David Gardner, captain of the good pirate ship Rule Breakers, who bought Amazon at a split adjusted price of $3.24 a share in 1997. He's up more than 2,500% since.

That helped him to overcome stinging losses from Sirius Satellite Radio, 3Dfx, and others to put up nine years of better than 20% average annual returns as the leader of the real-money Rule Breaker portfolio.

Let the haters be your friends
Today, David and his team still seek misunderstood growers. You can, too, with the help of our completely free Motley Fool CAPS investor-intelligence database, which currently contains information on more than 5,200 stocks.  

CAPS applies user input to rate stocks from one (low) to five (high) stars. Using CAPS, we're once again going to search for one- and two-star stocks that have at least 5% of their available shares sold short, but are expected to grow their earnings by no less than 15% over each of the next five years.

Let's have the list
Now, with that preamble behind us, here are five more unloved growth stocks:


CAPS Rating

Short Interest

5-Year Growth Estimate





Carrizo Oil & Gas (NASDAQ:CRZO)




American Medical Systems (NASDAQ:AMMD)








Ann Taylor Stores (NYSE:ANN)




Sources: Motley Fool CAPS, Yahoo! Finance. Short interest as of 10/10/07.

Bear in mind that this isn't a list of recommendations. Instead, I offer these stocks as candidates for further research. But, of these five, I like digital jeweler Blue Nile.

I know, I know, as a contributor to the Rule Breakers team, you'd expect me to pluck from our portfolio of winners -- and few have been bigger than Blue Nile. Trust me when I say I'm not just playing favorites here. What I like is that Blue Nile's cost advantage over peers such as Tiffany (NYSE:TIF) and Zale (NYSE:ZLC) is durable, and attracting customers.

Witness the latest quarterly report. Blue Nile's earnings came in well ahead of what the Street expected, again, while revenue soared 27%. Yet for CAPS investor derondantzler, it's still early in this growth story:

E-Commerce is a growing platform. Blue Nile is the go-to place for buying diamonds online. You know what you're getting. Now, of course, [Krispy Kreme] has proven that a good business idea and good product doesn't always work (ever ate one of their doughnuts?!), but I still see this one improving during the holiday season and think it's got potential to grow over the next few years.

Intrigued? Do your own due diligence and then check in with thousands of other investors at CAPS. And, if you'd like, add your own commentary. You'll be helping your fellow Fools and testing your ideas at the same time. Click here to get started now; the service is 100% free. 

See you back here next week for five more unloved growth stocks.

Tim Beyers, who is ranked 11,226 out of more than 73,000 participants in CAPS, is a regular contributor to Fool.com and Rule Breakers. Tim didn't own shares in any of the companies mentioned in this article at the time of publication. Click here for Tim's portfolio and here for his latest blog commentary. Amazon is a Stock Advisor selection. Blue Nile is a Rule Breakers pick. The Motley Fool's disclosure policy is your portfolio's competitive advantage.