With the recent downturn of the overall market, these 3 stocks now really standout as excellent growth on sale:
- KHD Humboldt Wedag International Ltd. (KHD) is an industrial plant engineering and equipment supply company, based in Hong Kong. Having recently sold off their financial services business which provided the bulk of revenues, they engineer and build things like cement plants, primarily in growth areas such as India, rest of Asia, Russia and eastern Europe. The company has growing profits, a two year back order that is growing faster than revenues, and is only followed by one analyst. I think this is an undiscovered gem with 30%+ growth potential. The company has a current market cap of $900 million and a trailing PE of 22.
- Gigamedia Ltd. (GIGM) is an online gaming company with 70% growth rates in Europe and limitless potential in Asia, where they are in the process of bringing several new gaming platforms to market. I see 50% annual growth for years to come. The company is followed by 3 analysts. The stock is extremely volatile, following the current market belief on China, so it could pay to wait for a dip (like this one!). The company has a $970 million market cap and trailing PE of 30.
- Aegean Marine Petroleum Network (ANW) provides fuel and other petroleum products at major ports throughout the world. The company has grown is fleet of double-hulled bunkering tankers from 10 to 20 over the last year with another 25 on order. During 2008, over 100 single hull vessels will have to be taken out of service worldwide. Although profits have been flat due to reinvesting in the business, revenues are growing at a 50% rate. The company has a $1.3 billion market cap and a trailing PE of 45. The stock hit $48 back in October and that number will certainly be part of its future. Four analysts regularly cover the stock.
These all are companies that will continue growing their business even if there is a marked slow down in the U.S. economy. Of course, my writings are for informational purposes, and you should do your own research if you are thinking about investing in any of these companies.
Disclosure: I have a long position in GIGM, ANW and KHD.