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 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 monstrously successful companies can help you establish a winning portfolio.
Stalking the monster
To find tomorrow's monster stocks, we'll enlist the more than 105,000 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) |
|
---|---|---|---|---|---|
99.87 |
GeoResources |
207.90 |
Applied Energetics |
* |
|
99.81 |
Consol Energy |
212.59 |
Trina Solar |
*** |
|
98.63 |
Hess |
203.79 |
Abraxas Petroleum |
***** |
|
97.67 |
James River Coal |
582.10 |
Spartan Motors |
**** |
|
97.17 |
Aluminum Corp. of China |
113.36 |
KHD Humboldt Wedag |
***** |
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.
Bank on this
It's hard not to think that any oil or natural gas company won't be performing well these days. With prices soaring and the talk of $200-a-barrel oil becoming the norm, it seems any exploration and production play can gain support. Abraxas Petroleum is one that has been benefiting from increased revenue as a result of such volatility. In the first quarter of this year, revenue rose 90% over the year-ago period, and the share price jumped when the company announced in April that it had discovered natural gas in one of its South Texas wells. Even with a much wider loss as a result of unrealized losses from the company's hedging activities, the stock is moving higher.
Investors are looking for Abraxas to provide more upside with the volatility of the oil markets. CAPS player mojotronic believes it will provide a bit of stability when it meets or exceeds analyst expectations.
Abraxas Petroleum is a great play in oil, currently priced under $5 but rising steadily with the oil tide. I bought in before the big dip in January, and have been paying very close attention. Its gains have appeared more stable with less downward fluctuations than other oil stocks, and its low price should appeal to investors looking for a multibagger. It has nice margins and ratios, and as oil rises its earnings growth should increase and possibly exceed expectations.
Yet while it has a lot of investor support at CAPS -- 97% of investors rating Abraxas think it will outperform the market -- not everyone believes it will produce a gusher of profits. CAPS player timeflys101 believes that its recent spinoff of the master limited partnership was in essence a bailout to keep the parent company afloat. Here's an excerpt:
The company has been around for nearly 30 years and has sputtered during the energy boom of recent years and stock price is well down from all-time highs. It seems most other smaller independent [oil and gas] companies have seen exceptional stock performances in recent years, but not ABP. ... Conclusion is the same problems that brought this company to the point that it needed [a master limited partnership] bail out are the same problems that will continue to manifest unless the CEO that has been doing the decision making the past 30 years is outed. That could now happen with the MLP formation. Robert Watson needs to go. With him gone this stock could do ok, until then more of the same.
A chance for scary growth
Now you can fill us in on these stocks the 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.