Winning stocks with impressive long-term returns can do more than tantalize investors. They might also guide us to the next great stock. For example, BlackBerry maker Research In Motion
Finding the tail on this coat
While many doubt the sustainability of its products and service in the face of capable rivals such as Motorola
If we can nail down some companies profiting from the burgeoning ecosystem that RIM is driving, we might find a hidden treasure worthy of investment. With a giant like RIM, investors typically follow the conventional wisdom, looking only for direct suppliers or partners. Obvious choices include the application providers that target the BlackBerry product line, such as Nuance Communications'
Motley Fool CAPS can really help us here. The massive Foolish stock database has lots of tools for finding and researching stocks and the people who pick them.
Tagging along with CAPS
With CAPS, investors can look through Research In Motion's tag list for other companies sporting similar attributes. For instance, RIM falls under tags such as "Diversified Communications Services," and "Rule Breakers Universe." In addition, the comments CAPS investors leave regarding rated companies can sometimes lead to similarly attractive investments, even those with little or no direct connection to RIM.
These CAPS resources could lead investors to companies like electronic module designer Comtech Group
CAPS also turns up another interesting Chinese communications equipment provider: the five-star rated Qiao Xing Universal Telephone
Of course, plenty of coattail investments have proved to be mere copycats, ultimately flopping for investors. That's why CAPS is best used as a research tool, not a device to pick stocks for you. Rather than taking anyone else's recommendation, investors should always perform their own due diligence. But you can't beat the information and resources for the price -- namely, 100% free.
Is there another stock you know about that has Research In Motion's wind in its sail? Give your own opinion in Motley Fool CAPS.
Nuance Communications is one of dozens of small caps that make up the Motley Fool Hidden Gems newsletter service's collection of market-beating picks. To see what other companies Tom Gardner and company are currently recommending, check out a free 30-day trial.
Fool contributor Dave Mock has never worn a coat with tails; he prefers the waiter style. He owns shares of Motorola. Dave is the author of The Qualcomm Equation. The Fool's disclosure policy is often imitated but never duplicated.