bosley
- 20 Feb 2004 09:34
bosley
- 08 Sep 2005 12:59
- 9041 of 27111
that's not what it sounded like.........
paulmasterson1
- 08 Sep 2005 13:44
- 9042 of 27111
Stanelco fit the bill nicely under option 1 :)
From TMF today ....
Tomorrow's Growth Share Winners
By Maynard Paton (TMFMayn)
September 7, 2005
All private investors dream of finding the next GlaxoSmithKline (LSE: GSK). In 1965, the company was worth 64m, had started to dabble in the then fledgling pharmaceutical industry and was sixteen years away from hitting the big time with ulcer treatment Zantac. These days, Glaxo is worth 79b -- up a stunning 123,000% in 40 years -- a gain that excludes some mighty dividends collected in the meantime!
Dynamic growth shares such as a 1965 Glaxo will I hope form a major part of Champion Shares -- the exciting, brand new investment service from The Motley Fool. Here's my quick five-point guide to finding some of the great winners of tomorrow:
1. Growing industry or revolutionising an existing sector: A dynamic growth company must have long-term expansion opportunities. Glaxo was there at the dawn of the emerging pharmaceutical industry. Tesco (LSE: TSCO), on the other hand, was already selling food when it saw the advantages of larger, out-of-town locations. It then helped lead a revolution away from the traditional corner shop and has since lead another revolution selling non-food goods! Tesco, for what it's worth, has seen its market value improve 75,400% since 1965!
I reckon specialists involved in, for instance, the Internet, 3G, microchips, software or healthcare, or a firm 'shaking the rules' in conventional areas such as retail, finance or transport, could make for a great Champion Shares 'fast grower'. In fact, I'm increasingly finding new issues as a fertile hunting ground for growth. Plenty of smaller companies are now joining the market and offering what I consider to be ground-floor opportunities in promising, innovative sectors.
2. Rapid and organic sales growth: I'm not too interested in a blue-sky gamble. Instead, I want companies that have already demonstrated their potential. Rapid top-line progress is by far the best evidence for me, especially if it's organic and based on deals with respected customers. Admittedly, I can live with a 'fast grower' not earning a profit. In my experience, superior sales growth can eliminate losses in time -- but I've got to be sure breakeven comes sooner rather than later!
3. Market leader: This is important. The worst growth share to hold is an over-rated Johnny-come-lately that lacks the resources to sustain its progress. I want a sector 'first mover' and/or front runner. If the company is profitable, I'll look for high operating margins for evidence of a competitive advantage. Whatever, I'll certainly study the company for protective 'barriers' -- such as patents, branding or customer switching costs -- that can keep rivals at bay.
I also believe a key element to any fast-growing firm is management. I want to see the founder -- with all his or her entrepreneurial and creative talent -- at the helm and turning their growth-share ambition into reality. Certainly among smaller growth companies, running with 'founder management' is all important to me.
4. Net cash and cash generation: Fast growers are always prone to hitting speed bumps. If trouble does strike, I want the company to recover smartly. A substantial net cash pile, I feel, is one of the most reliable ways of surviving any difficulties. That said, I really prefer to spot trouble at a business before it occurs!
Something few growth investors ever check is cash flow. I've witnessed numerous fast-expanding companies haemorrhage cash, which to me suggested their rapid sales/earnings growth was nothing more than an accounting illusion. Indeed, here are five growth share impostors I spotted before they crashed and burned following terrible cash management.
5. Cheap valuation: Essentially I want to buy growth at a reasonable price. But judging how much to pay for a company expanding at, say, 20% a year, is tricky. Depending on how long the growth rate lasts, 30, 40, or even 50 times earnings, could be justified. In fact, you could have bought go-go Google (Nasdaq: GOOG) last year at almost 60 times earnings... yet tripled your money within twelve months! To a certain extent, there'll be no hard and fast valuations rules for my Champion Shares fast growers. But I'll do some rough projections and ensure the shares have room to produce a 100% gain within three to five years.
What now?
So which shares am I investigating as possible Champion Shares fast growers? Unfortunately, the growth opportunities I'm actively monitoring can't be revealed here. But what I can say is that there is no shortage of possibilities. A quick trawl on a popular share-filter website listed over 400 quoted companies that had doubled their top line within the last five years!
The companies I'm watching will be eventually revealed when the Champion Shares service launches in the near future -- though I can't promise any will produce anything like Glaxo's 123,000% return! To learn more about Champion Shares and the opportunities it will recommend, just pop your e-mail address in the box below.
Maynard owns shares in GlaxoSmithKline. Sadly, he bought them a long time after 1965 but hopes also to find the next Glaxo soon!
shamona
- 08 Sep 2005 14:01
- 9043 of 27111
LOL !!
Niggsy
- 08 Sep 2005 14:54
- 9044 of 27111
LOL!
Open day at the nursing home !
danlyboy
- 08 Sep 2005 15:12
- 9045 of 27111
Danlyboy@ntlworld.com
belisce6
- 08 Sep 2005 16:47
- 9046 of 27111
the thing with Paul's very long posts is that when you are not in the mood, or you simply do not have the time, then they can be simply way to tedious.....
HOWEVER......when you are in the mood and/or do have the time, and you read thru the posts in some detail......you will realise that one way or another you are gaining some useful information.
I recently spent half a day looking up the NatureWorks-Cargill website, to see whether they are a dangerous competitor to SEO, and then after ingesting what i was looking for; i realised that most of the overall content of the material had been posted on this thread by the sometimes over-exubirant resident poster.....
NielsJensen
- 08 Sep 2005 18:17
- 9047 of 27111
I think he's an android that never sleeps....
halfamil
- 08 Sep 2005 20:17
- 9048 of 27111
RHPS
Recommendation is BUY. 5% down this since last update. Suffering from profit-taking.
superrod
- 08 Sep 2005 21:48
- 9049 of 27111
seo fan....rhps fan.....profit taking? bullshit. out for now and watching VERY closely.
stringy
- 08 Sep 2005 22:25
- 9050 of 27111
Me too superrod.
No worries with the Bprg court case whichever way it goes. Budgeted for I believe.
Where does shamona get that 20m from? Is that what bprg would have made from the technology if SEO hadn't pinched it? I think not and how much have SEO made from the disputed technology.........well............... nothing..........it was still at r&d stage!
How could 20m be awarded? Why not 100m, 200m, or bugger all which is probably nearer the mark.
bosley
- 08 Sep 2005 22:26
- 9051 of 27111
come on superrod, stop mincing your words. say what you really think!!! :)
been laughing to myself reading the iii seo thread. seq is alive and well and causing chaos.
shamona
- 09 Sep 2005 07:44
- 9052 of 27111
stingy
Loss of competitive agvantage, loss of customers (Wyeth, Cardinal), SEO'S Ingel had a figure of 20 million put on it by SEO so it stands to reason that will be the damages figure as it wouldn't exist without the stolen patent.
roma
- 09 Sep 2005 11:07
- 9054 of 27111
shamona, Everone that reads this thread knows about the court case, its not news so I can,t understand why you keep going on, and on,and on,and on,and on, and on,about it.
shamona
- 09 Sep 2005 11:24
- 9055 of 27111
roma
Because their are some here saying it's of no concern when infact it could break the company.
roma
- 09 Sep 2005 11:38
- 9056 of 27111
Rubbish.
Rasenberg
- 09 Sep 2005 11:51
- 9057 of 27111
anything to back that up with Shamona or just your wild 20m prediction ( unfounded ) as a settlement figure.
Feel free to post with facts and we will listen. Otherwise please keep quiet.
You might be right, you might be wrong but facts are the way forward here.
ptholden
- 09 Sep 2005 11:53
- 9058 of 27111
Shamoaner
You do talk utter crap. When the CC was first heard (and I won't go into who actually won what) whilst the SEO SP was in the 4p-6p range compensation of 1M were been discussed on various BPRG threads. Now that SEO is moving on with a SP of 19p-20p the compensation will be 20M. I assume that as the SEO SP rises the amount will continue to increase? Whatever the outcome of the CC, it will not break SEO and for you to believe so shows your desperation. Rather than resting all of your slim hopes on a BPRG revival on a CC that will go on for some time yet, why not try to find something positive in BPRG, the company. By the way, even if the CC goes against SEO and compenasation is awarded, I would imagine SEO will contest any significant amount, so don't expect to see a resolution in a hurry.
pth
Tonyrelaxes
- 09 Sep 2005 12:15
- 9060 of 27111
Dead duck?