Wednesday, May 30, 2012

Up Double-Digits in May... and This Stock Could Still Double‏

Have you ever grabbed a can of Monster Energy Drink and wished that you'd bought that stock when you discovered energy drinks? Probably not, but you should. Monster Beverage's (Nasdaq: MNST) stock has gained more than 26,000% since the beginning of 2003 -- a $1,000 investment would have grown to more than $260,000. Apple is a fantastic stock, but it has only gained about 6,800% over that same time.

The next big winner may be a tech stock, but simple consumer products like energy drinks offer less risk and take less specialized knowledge to understand.

The biggest winners also tend to start off as small stocks with low prices. MNST was less than $5 a share in early 2003 and had less than $200 million in sales when it began its big move. To find the next extraordinary winner, I like to look at small companies.

This week, I found the stock of a small company that doesn't seem to realize the market has been selling off lately. It's a small consumer products company with explosive growth in sales and earnings. Revenue is up 28% in the past twelve months, earnings are up 22% and this stock is up more than 55% over the last year. The stock is now more than 600% above the bear market lows that were reached less than four years ago. (more)

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