Stocks that climb to 10 times their original price are a rare breed -- but they're not impossible to find. Especially when you have Fools for friends.
The market's best stocks include companies that have risen many tens 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 companies can help you establish a winning portfolio.
Stalking the monster
To find tomorrow's monster stocks, we'll enlist the more than 100,000 investors at Motley Fool CAPS. We've compiled a list of the most successful CAPS players, 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 (5 max) |
|
---|---|---|---|---|---|
99.82 |
First Solar |
481.57 |
Yingli Green Energy |
**** |
|
99.76 |
TBS International |
397.92 |
Capstone Turbine |
*** |
|
99.43 |
First Solar |
863.57 |
Boots & Coots International Well Control |
**** |
|
99.20 |
DryShips |
510.26 |
Duke Energy |
**** |
|
98.94 |
First Solar |
455.00 |
Atwood Oceanics |
***** |
Source: Motley Fool CAPS. CAPS score is by how many percentage points the pick has outperformed the S&P500.
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.
Not playing around
While solar energy continues to receive an inordinate amount of attention, other renewable energy sources have also had the wind at their backs. Such is the case with tiny Capstone Turbine, a manufacturer of microturbines that operate on a variety of gaseous or liquid fuels and emit very low emissions. It recently unveiled the first megawatt microturbine solution. Officials at the 20-year-old company claim that each installation of this solution, while producing power on site, would be the emissions-reducing equivalent of removing up to 700 cars from the nation's highways.
It has also inspired CAPS investors: Of those rating it, 87% picked it to outperform the market. Take seanandnan, for example. This player sees the need for clean and efficient alternative sources of energy. "[W]ith oil prices rising, clean and efficient energy is the key to the future. Capstone got ahead of itself earlier this decade, but the company is finally making solid sales and ramping up production for the coming explosion in their microturbine niche."
Another CAPS player, dantes33, believes that the switch from research and development to an actual production company will put the wind in Capstone's sails. Here's an excerpt:
Was previously a research company until the first couple months of 2008 and has since been receiving orders from all parts of the world-wide Green Energy push. ... Can be run off landfill or digester gas into a nearly 100% green energy. The company has capacity to scale up production without little to cost and from the orders they've been receiving lately, it looks like their biggest issue is if they can build their turbines fast enough. Think of it, instead of a power plant (~9% efficient) any/everything can now be powered nearly 100% green, and is 80%+ efficient and can be powered off what otherwise would be pollutants.
A chance for scary growth
Now's the opportunity for you to weigh in on Capstone or any of the other stocks these All-Stars see as achieving monster growth. Agree with their views? Tell us on CAPS. If you don't agree, let us know that, too! If you've got an opinion, then this is the place where your voice counts just as much as everyone else's. Let's hear if you think these are tomorrow's monster stocks that have been uncovered today.