During the last two years, I have been privately investing in small giants. Unknown to the most consumers, these companies provide extremely high-value return (including return of 300% stock profit within 1YR or as much as 40% return in 6 months). Some of these companies are under-the-radar, and require understanding of their business.
To me, investing in a company begins with evaluating the overall image of the company. You have to look at the company as a whole, with each individual aspect playing key role in the future profit and growth.
1. Company Vision & History
- What, Who, When?
- How long was the company established?
- Profit & Loss History?
- Merger & Acquisitions?
- Company’s Reaction during Depression?
2. Company’s Management Background
- Level of Education
- Credibility & Knowledge
- Industry Experience
3. Company’s Investors Philosophy
- Who invested in this company?
- Which investing firm(s)? JP Morgan VS Citi Finance?
- Long-term or Short-term Goals?
4. Company’s Financial Statement
- P/E ratio, ROE, ROI
- Debt & Liquidity
- Current Ratio
- Investment & R&D
- Plans for future trend & technology
5. SWOT – Strength, Weakness, Opportunities, and Threats Analysis
- How does the company defense against incumbents?
- What new products have they developed in last decade? Years?
- How have they reacted to changes in the consumer tastes & technology?
- Are they willing to change overall business when faced with Red Ocean Market?
- Willingness to forgo and move into new business for future profit?
- Company’s Culture in retaining smart employees?
7. Frequency, Recency, Monetary Theory Effect on the Company’s Growth
- How frequently does the company engage with their clients?
- If it is a B2C company, how much traffic does the website bring?
- What is the level of web impressions, CTR, revisits, duration, and page views?
- Has the company identified profitable business model on its FRM?
Based on these criteria and deep-understanding of the company, I invested in Sprint (S), AXTN, PGND, FB, HOLX, and few other great companies. Amazon & Tesla are odd-balls, but Amazon does build profit on FRM.
$S Sprint Stock, since Feb 2016, the price per share grew from $3.00 to $9.00 less than a year, creating 300% growth.
FB has provide higher-than expected growth with strong Buy options from the financial investors. It aims on building new technology, innovation, along with smart M&A in future profitability.
HOLX has came up with innovative cancer detecting system that surpasses the industry standard. It also deals with female breast cancer early-detection.
PGND has its investor from Colin Powell, US General, and long established reputation in the healthcare sector, covering all national hospital networks.
AXTN has more than 100YR history, as part of the DuPont Chemical and spin-off to became independent company. CEO announced that its intention for growth in early stage, yet the insiders trade show their stock sales after reaching $36/share. I invested in its IPO at $16/share and sold at $36/share when its insiders stock sales reached peak.