If you're a hard-core value investor, take a few deep breaths before reading this piece -- it might anger you. If you believe in looking at the world from an altogether different point of view, get excited.  In this article, I'm going to suggest that you:

  • Find innovative companies that aren't yet profitable.
  • Look for traditionally high valuations.
  • Check and see whether there's a heavy short interest.

Then, I'm going to buy those companies.

A crazy portfolio!
As I explained on Monday, I'm looking to create a 10-stock portfolio. To complete my list, I've followed up on the five stocks I talked about in that article with five more that I'm going to invest my own money in.

Below is a quick look at what today's five companies do, what their P/Es are, and how much of their float (shares available for trading) short-sellers have sold.


What They Do


% of Float Short

Qihoo 360 (NYSE: QIHU) Cybersecurity and browser 307 30%
Country Style Cooking (NYSE: CCSC) Chinese fast food 47 17%
Netflix (Nasdaq: NFLX) DVD and streaming rentals 80 20%
MAKO Surgical (Nasdaq: MAKO) Medical devices NM 14%
Zipcar (Nasdaq: ZIP) Car-sharing program NM 10%

Source: finviz.com, NM = not meaningful because of losses.

Qihoo 360 is a company that provides browsing services and cybersecurity to users in China. The company's browser is second only to Internet Explorer in China. If Chinese users gravitate toward a domestic browser -- much the same way they have by choosing Baidu (Nasdaq: BIDU) over foreign Google -- there could be heady growth for the company moving forward.

Our Global Gains team just returned from their trip to China, and they were glowing in their assessment of Country Style Cooking, calling it the "Chipotle of China."  Recently, I highlighted why investing great Peter Lynch would appreciate this company and its management.

Need any more be said about Netflix that hasn't already been printed? The DVD and streaming provider recently made headlines with its price hikes. While customers may be angered in the short term, the company still offers an incredible deal for the price paid, and its streaming content will only be getting stronger.

MAKO Surgical may remind some of Intuitive Surgical and its da Vinci robots, which help doctors perform minimally invasive surgeries. MAKO's specialty is in robotic hip and knee replacements, something that will no doubt become more necessary as more and more baby boomers desire to remain active into their later years.

Rounding this up is Zipcar. Folks who live in rural or suburban areas may not have any idea what Zipcar is, but city slickers are well aware of the company. For a yearly membership fee, plus standard usage fees, Zipsters -- as they affectionately call themselves -- can use cars hourly without having to worry about gas or insurance. Though the company isn't turning a profit as a whole, it is making money in its most developed markets.

Foolish takeaway
If you want to keep tabs on these five companies, I suggest you add them to your watchlist. If, on the other hand, you want a second opinion, I'm willing to give you access to a special free report titled "5 Stocks The Motley Fool Owns -- And You Should Too." In it, you'll find a report of five companies hand-picked by The Motley Fool's top analysts. It's yours, today, absolutely free.

Fool contributor Brian Stoffel has been called crazy more than once. He owns shares of Qihoo, Netflix, Intuitive Surgical, Chipotle, and Google. He plans on adding shares of Country Style Cooking, Zipcar, and MAKO to his portfolio.

The Motley Fool owns shares of Zipcar, Chipotle, and Google. Motley Fool newsletter services have recommended buying shares of Country Style Cooking, Zipcar, Intuitive Surgical, Baidu, Chipotle, Netflix, MAKO Surgical, and Google; creating an iron condor position on Chipotle; and buying puts on Netflix. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.