Tomorrow's Monster Stocks?

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 that have sound business prospects and achieve 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 winners, we'll enlist the 130,000-plus 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.

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 a banking Bigfoot
Oh! You mean there are strings attached to the money? Then no, thanks, we don't want it anymore. Faster than a politician switching sides as poll numbers dictate, financial institutions are itching to pay back their TARP funds ahead of schedule because of the pay caps mandated on those who've accepted them. Of course, some banks were made offers they couldn't refuse, and it's understandable that they'd want to get out from under the restrictions.

State Street, which got about $2 billion in taxpayer money in the first round of financing last October, was one of the companies that was forced to take the funds for the good of everyone else. Now it has priced $500 million of senior notes and offered $2 billion of its common stock in a bid to raise enough capital to pay off its TARP bill. CAPS member Garyestein also likes it that the company passed the so-called stress test banks were put through: "It did not have to raise funds after the stress test but did anyway and is not exposed to the home mortgage or credit card markets like the other banks in a similar position do. So I am betting on this one to be the winner."

Scary good opportunity
Jewelry seller Fuqi International beat analyst expectations for profits, though it fell short on revenues. The company makes jewelry from platinum, gold, diamonds, and other precious metals and stones, and it's been able to bounce back as a result of expanding its retail presence.

Historically, it sold its jewelry to department stores, distributors, and retailers, but in 2007, it began directly operating six retail counters at two department stores in China. Last year, it expanded that concept again by acquiring Temix, a 50-store chain of jewelry stores located primarily in the Beijing and Shanghai regions.

The strategy seems to be paying off well, and CAPS member neumann101 sees further explosive growth in China driving profits higher.

Recent (2004) repeal of restrictions on use of gold in jewelry feeds long suppressed demand for fine jewelry.

The company plans to add 150-200 retail outlets to current 69 in the next 2-3 years. The management is well equipped to take advantage of Chinese retail market, and American investment market.

They also plan to add diamond and gemstone jewelry to production capability at the Shenzhen factory in 2009, it may already be producing.

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.