Start the conversation
[Editor's Note: This analysis of tech stocks to buy originally ran Oct. 30 to Michael A. Robinson's Strategic Tech Investor readers. You can get Robinson's tech investment columns for free; just sign up at the bottom of this page to start profiting today.]
Using the five rules we created to identify the biggest-potential stocks, we told you how the Mountain View, Calif.-based tech innovator was continuing to position itself as a company that will continue to create wealth for its stockholders.
Not long after, several folks wrote in to say that Google's $885 share price made the stock too pricey for them to own.
We countered with the same response we always make to such comments: On a given amount of cash, a 30%, 50%, or 80% return will net the same profit – no matter if that cash is invested in a $50 stock or a $550 stock.
And, with Google, we're already on our way: The share price has already advanced 15%, meaning that $885 stock is already trading north of $1,000 a share, and closed Monday at $1,015.
Sometimes, you'll find, the stocks that appear the most expensive actually turn out to be the cheapest at the time you buy them.
That got us thinking … and prompted us to ask this question: What other companies are destined to join the "Thousand-Dollar Club?"
Stocks to Buy: High Prices = High Profits
Google isn't the only member of the "Thousand-Dollar Club" right now.
There's also Priceline.com Inc. (Nasdaq: PCLN), the Web-based travel firm known for its campy-but-awesome ads featuring campy-but-awesome actor William Shatner. Priceline's shares were recently trading at $1,060.
Both GOOG and PCLN have been terrific performers. Over the past two years, Google has surged 73%, while Priceline has soared 105%. Over the past five years, GOOG is up 187% with Priceline up an astounding 1,925%.
Those stunning returns have positively dwarfed the 39% and 80% gains of the Standard & Poor's 500 Index during those same two- and five-year periods.
Let me tell you … I've been a financial strategist and columnist for years and years. And whenever I or one of my colleagues would talk about gains of this magnitude, the response we invariably would get would be something akin to: "That's great … now tell me about the next stock that's going to give me gains like that."
We hear you.
And we're responding.
Employing the five wealth-creating rules we use to identify tech plays for our STI readers – and the "Black Box" system that we employ in our Radical Technology Profits advisory service – we set out to identify a short list of stocks that could generate the prolonged, towering gains that will "mint" new members of the "Thousand-Dollar Club."
We eliminated any companies that pose what we refer to as "wildcard risks" – downside potential that could derail the required rally.
As a result of this exercise, we identified five companies that are in the right types of businesses, that possess the remarkable strategic models, and that have the potential to execute – putting them on a course that should one day lead to membership in the exclusive "Thousand-Dollar Club."
I even "handicapped" the candidates, giving you odds on each of the five candidates. (I relied on some "techniques" that I picked up playing the ponies and at the Blackjack tables … it's a story that I'll get around to sharing with you one of these days.)
So let's start with the best candidates, and work our way back from there. For each stock, we present the odds of that stock getting to $1,000 a share, the ticker and the current share price right at the start of each recommendation.
We conclude each profile with the "investment case" that induced us to choose that stock.
So let's take a look…
About the Author
Michael A. Robinson is one of the top financial analysts working today. His book "Overdrawn: The Bailout of American Savings" was a prescient look at the anatomy of the nation's S&L crisis, long before the word "bailout" became part of our daily lexicon. He's a Pulitzer Prize-nominated writer and reporter, lauded by the Columbia Journalism Review for his aggressive style. His 30-year track record as a leading tech analyst has garnered him rave reviews, too. Today he is the editor of the monthly tech investing newsletter Nova-X Report as well as Radical Technology Profits, where he covers truly radical technologies – ones that have the power to sweep across the globe and change the very fabric of our lives – and profit opportunities they give rise to. He also explores "what's next" in the tech investing world at Strategic Tech Investor.