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 firms 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
|Quantemonics||99.89||Radian Group||205.67||Hess (NYS: HES)||****|
|TSIF||99.96||Ocean Freight||225.79||Hyperdynamic (ASE: HDY)||*|
Source: Motley Fool CAPS. Score is 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.
Feeling the energy
A shaky fourth quarter and some asset sales are raising doubts about whether oil and gas exploration and production play Hess will be able to build on its otherwise encouraging profile.
Revenues and earnings fell below expectations, and it recently agreed to sell its 3% interest in the Snohvit LNG project in Norway to Statoil (NYS: STO) for $170 million as well as 28% of its holdings in the North Sea Bittern oil field to Dana Petroleum. Production levels will be affected as a result of taking these assets off the table, and with a refinery in New Jersey taken offline for repair after it was found to be using excessive amounts of catalyst, analysts are worried 2012 will be a subpar year.
Yet because of its strong holdings in the Bakken, Marcellus, and Eagle Ford shale plays, Hess is still committed to being able to double its output of oil over the next few years. Although it has sold some assets, it also joined with CONSOL Energy (NYS: CNX) to exploit the Utica shale region, which continues to grow in importance.
CAPS member mwlove sees its moves as one of getting leaner and focusing more, meaning the discount it trades at to larger oil plays is an opportunity not to be missed. Let us know in the comments section below what you think of the less-is-more angle and add Hess to your watchlist to see if it can meet the market's expectations for the year.
Down but not out?
Another oil play that's looking lean is Hyperdynamics, but the emaciated stock has nothing to do with selling its assets. Rather, hopes for a big oil strike off the west coast of Africa are looking about as dry as the Kalahari these days. Earlier this month, it reported there are only remnants of oil left behind in the well it drilled.
The one hope Hyperdynamics has is that its 9,600-acre concession is one of the largest in West Africa, and the fact that there was residual oil suggests that it's possible the company will find oil elsewhere in the region. Nexen found oil there earlier than expected, and Total (NYS: TOT) just opened an offshore field off Nigeria.
It would've been timely had Hyperdynamics met with success, as Asia is increasingly turning to West Africa for its oil needs. But with the stock losing nearly two-thirds of its value over the past month, the oil explorer is in a desperate position.
While 80% of the CAPS members rating the oil explorer believe it will ultimately outperform the market indexes, the low one-star rating they've assigned to it suggests they think there are much better places for your money. Add Hyperdynamics to your watchlist to be notified if the next rig it sticks in the ground meets with better success.
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 contributor Rich Duprey holds no position in any company mentioned. Click here to see his holdings and a short bio. Motley Fool newsletter services have recommended buying shares of Total and Statoil. 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.
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