Stocks that climb to 10 times their original price are rare -- but they're not impossible to find. Especially when you have Fools for friends.
The market's best stocks include companies that have risen hundreds of times in value over the past decade. These aren't penny stocks; they're viable companies with sound business prospects that achieve phenomenal returns every year. Finding just one or two of these monstrously successful firms can help you establish a winning portfolio.
Stalking the monster
To find tomorrow's monster stocks, we'll enlist the more than 97,000 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 more 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 | ||
|---|---|---|---|---|---|
|
99.97 |
Mechel |
334.00 |
Oilsands Quest (AMEX: BQI) |
***** | |
|
99.96 |
China Natural Resources |
360.50 |
Corning (NYSE: GLW) |
***** | |
|
99.93 |
Mechel |
307.18 |
China Fire & Security (Nasdaq: CFSG) |
***** | |
|
99.91 |
Mechel |
516.96 |
Melco PBL Entertainment (Nasdaq: MPEL) |
***** | |
|
99.88 |
Aluminum Corp of China |
319.61 |
Portec Rail Products (Nasdaq: PRPX) |
***** |
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.
Not playing around
Unless you follow gambling stocks -- or were really good in geography in high school -- knowing where Macau is, or that its economy depends on gambling and resort industries, probably doesn't seem too important. Yet the stub of land off mainland China is the only place where gambling is legal in that country.
Motley Fool Global Gains selection Melco PBL, a joint venture between two other gaming giants in the hemisphere, went public in 2006. Its shares now trade for around 65% of its IPO price, despite the huge potential for growth demonstrated by Las Vegas Sands' (NYSE: LVS) and Wynn Resorts' (Nasdaq: WYNN) expansions of their Macau operations.
Yet that disparity has registered with CAPS investors, 96% of whom have rated Melco PBL to outperform the market. Comparisons with Las Vegas are natural, as investors like Rediggles have observed:
Macau has the opportunity to host the next generation of high rollers -- the numbers say that MPEL will be the epicenter of the new (and bigger!) Vegas.
Fellow CAPS investor KeefyR sees big-time gamblers bound for Macau. If Melco can succeed in capturing a large portion of the VIP crowd for the long term, it should stand to do well. KeefyR noted that even if earnings missed expectations -- which they didn't -- the company would still see its stock rise because of growing demand:
This has been losing money, but they are ready to explode. They have recently captured the VIP gambling junket market in Macau. The 1Q earnings are projected to be very high. If they get half of what is projected, the stock price will begin to go up and stay up. At least I hope so: I want my 50 (count 'em 50!) shares to make me a millionaire! Well, maybe not.
A chance for scary growth
Now's the opportunity for you to weigh in on Melco PBL or any of the other stocks these All-Stars believe will achieve 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 as much as anyone's. Let's hear whether you think these are tomorrow's monster stocks, uncovered today.
