Tomorrow's Monster Stock?

Stocks that climb 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 taken advantage of the market's weaknesses to rise dozens of times in value. These aren't penny stocks; they're viable companies with sound business prospects, achieving phenomenal returns. Finding just one or two of these monstrously successful firms can help you establish a winning portfolio.

Stalking the monster
To find tomorrow's winners, we've enlisted the help of more than 145,000 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:

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 of extreme buying opportunities.

In search of Bigfoot
The anticipated cutback in Chinese lending is fueling fears that economic expansion will grind to a halt worldwide. Yet dry bulk shipping magnate DryShips remains resolute in its positive outlook, believing that the stimulus spending the country enacted last year will remain effective into 2010. In an interview with the Fool, COO Pankaj Khanna says the bulk of monies from that program have yet to be spent, and that imports of iron ore and coking coal will remain strong, since infrastructure projects remain the primary target of such funds.

Some investors, like CAPS member BobLap111, remain warily cautious, preferring to see some concrete signs of an uptick in economic activity before believing we're out of the woods. But others, like markike, already see indications that DryShips is improving:

Shipping picking up and BDI rising which will fill gaps around their unsecured ships. Oil holding above $75/bbl will spur the UDW segment into either an IPO or higher valuation of the company. Some of their stock offerings were accretive due to the use (100% purchase of Primelead).

There do seem to be conflicting signals regarding whether the worst is over. Still, 87% of the more than 3,100 CAPS members rating the dry bulk shipping leader believe it will outperform the market. Head over to the DryShips CAPS page and tell us whether it still floats your boat.

A better picture
Another imperative facing China is the conversion of all analog TV signals to digital by 2015. That should prove beneficial to China Digital TV in the long run, since the company makes the smartcards that China's set-top boxes will need after the conversion. Analysts project the number of Chinese digital TV users will grow from 45 million at the end of 2008 to more than 110 million by the end of next year.

The risk for investors is that the conversion is not a mandate; it's simply a target date. Broadcasters' uptake may not be as quick, nor consumers' switchover as broad. That was borne out in the last quarter, when China Digital missed earnings estimates by a wide margin and revenue fell sharply year over year.

Still, the change is coming, and at just 14 times forward earnings estimates, China Digital TV looks attractively priced. With lots of cash and no debt, this Motley Fool Rule Breakers recommendation could provide lots of upside potential over the next few years.

CAPS member Rzani figures the industry-leading position of China Digital TV gives it an outsized chance for success:

They dominate the digital tv card market in China. The only chinese company in the hunt for the tens of millions of new digital tv users to be added in the next couple of years.

A chance for scary growth
It takes more than a few All-Star picks and a quick paragraph to make buy or sell decisions. 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.