Tomorrow's Monster Stock
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 by taking advantage of the market's weaknesses. These aren't penny stocks; they're viable companies with sound business prospects that are achieving phenomenal returns. 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've enlisted the help of more than 180,000 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.
Recent Stock Pick
|Vavoom11||99.88||Fossil||185.12||Brocade Communications (NAS: BRCD)||*****|
|gr3enlantern||97.62||Ford||184.24||MannKind (NAS: MNKD)||*|
Source: Motley Fool CAPS. Score = how many percentage points that pick is beating the S&P 500.
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.
Be my valentine?
Always a bridesmaid, never a bride. Brocade Communications has watched Juniper jump the broom with Trapeze; Force10 Networks get swept off its feet by Dell; and Cisco (NAS: CSCO) , with some 150 acquisitions in its lifetime, buying just about everyone else.
Yet while Brocade did buy Foundry Networks itself, it's generally been passed over as the blushing bride. The Foundry business arguably makes it more attractive than it's ever been, however, and that could be why Blackstone Group is at the forefront of new rumors someone may propose to the new networking star.
In particular, Brocade is jousting with Cisco through contracts with Dell, IBM, and Hewlett-Packard (NYS: HPQ) to move into markets traditionally held by the industry's king, like Ethernet switches. Although I think Cisco will remain on the throne, I see Brocade planting its flag in its territory. Blackstone likely does, too.
Highly rated CAPS All-Star explainstuff can't understand why someone would choose Brocade over other top talent that's out there, but you can let us know in the comments section below what you think of the takeover chatter, then add Brocade to your watchlist to see if a "save the date" announcement card arrives in the mail.
It takes a special kind of investor to believe in MannKind being able to bring its inhaled insulin therapy to market. On one hand, you have to overcome FDA resistance to the biotech's announced manufacturing changes (let alone the rejection of inhaled treatments attempted before by Pfizer (NYS: PFE) and others). Then on the other hand you have the massive dilution proposed by the company to be able to mount the ramparts and keep going.
Many seem to think its latest stock and debt offering is simply a sign the company is running out of cash. There haven't been partners lining up to help it through the crisis, and investors are doubtful anyone will step forward now.
Although 83% of the CAPS members rating MannKind think it can still outperform the market indexes, the low two-star rating they've assigned it suggests they think there are better places for your money. Tell us in the comments section below if you think it will survive to fight another day, then add it to the Fool's free portfolio tracker to be notified if anyone steps in to give it a leg up.
A chance for scary growth
It takes more than a few All-Star picks and a quick pitch to make buy or sell decisions, so start your own research on these stocks on Motley Fool CAPS and marvel at the range of opinions there.
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At the time this article was published Fool contributorRich Dupreyowns shares of Cisco Systems and Pfizer, but he holds no other position in any company mentioned.Click hereto see his holdings and a short bio. The Motley Fool owns shares of Ford, IBM, Fossil, and Cisco Systems.Motley Fool newsletter serviceshave recommended buying shares of Ford, Cisco Systems, Pfizer, and Fossil, as well as creating a synthetic long position in Ford and writing covered calls in Dell. A separate service has recommended shorting Fossil. Try any of our Foolish newsletter servicesfree for 30 days. We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy.
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