By Timothy Lutts
Today’s investment idea is Shutterfly (SFLY), the #1 online resource for storing and sharing photos, while using them to create photo albums, invitations, coffee cups, T-shirts and more.
Founded in 1999, the company historically has lost money in the first three quarters of every year, making it all up – and then some – in the fourth quarter. But it’s been profitable on an annual basis since 2003, and it’s grown revenues every year as well, telling you its own growth cannot be stopped by a weak general economy.
I like Shutterfly because it’s the industry leader, because it’s becoming better known every year, and because there are no limits to its growth.
And I like the stock because it’s still fairly young. The company came public in 2006, completed a textbook consolidation at 52 last week, and now is trading at new highs.