The Fifty Highest-Quality Growth Companies Traded On US Exchanges
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Market risk assessment:
Risk Fairly High, New Purchases 3% Of Portfolio.
Calculation based on proximity of current price to the Algo-indicated BuyAt and SellAt prices of the S&P 500 and the fifty fastest growing, low debt, highly profitable companies trading on US exchanges.
Click on images to expand.
Modifications To Potential Positions
After the market closed yesterday a number of companies were added to the Potential Positions list. Also yesterday, a number were removed that no longer qualified for the top fifty. Some of these remain Current Positions. We’ll sell when they reach their targeted SellAt price. All are superior companies with one exception, Starco Brands. That one is highly speculative. I’m not sure if my decision to hold Starco arises out of a reluctance to admit I made a mistake or an instinctive gut feeling that the stock has major potential. I’m letting that one percolate in the back of my mind for a little while.
Companies go off and on the list for various reasons. One common reason is they go up so much in price that their five-year appreciation potential appears diminished. Another is a slight deterioration in margins or financial strength, and so they are supplanted by other companies with stronger trends.
The list of companies removed appears at the end of this report.
Today’s report looks at a new addition to the SuperGrowth MultiBaggers:
APT - Alpha Pro Tech Ltd: Second Strongest Financial Statement Trends Of Any SuperGrowth MultiBagger.
The strength of this company’s financial statement trends make it number two in terms of all public companies after Advanced Micro Devices. Its market cap is relatively small at $146 million.
FTNT - Fortinet Inc: Closest to indicated BuyAt (10.48% above)
Fortinet, FTNT, is currently trading at 10% above is indicated BuyAt level, which is the closest to a buy of any SuperGrowth MultiBagger.
We were in Fortinet once in the last few months for a 40% gain over a 3 month holding period. We sold at $148 at the end of January. The stock is now $173. That brings up an interesting point: Wouldn’t it be better just to buy and hold these quality growth companies? Yes if you knew the market was going to go up. By selling, an investor is essentially reducing their upside and reducing their risk.
Here’s a quick look at FTNT’s Summary Report. Key trends are all strong.
PGR - Progressive Corp: Closest Current Position to indicated SellAt (4.7% below)
Progressive is a highly efficient, profitable car insurer. We currently rate it, overall, at 101st relative to all public companies, in terms of financial statement strength and trend. We’ve removed it from the SuperGrowth MultiBaggers only because we focus on the top fifty. At number 101 it is still in the top three percent of all public companies.
Risk Research has a position purchased at the end of November and the first of February in three transactions at an average cost of $87.61. It is 14% of our portfolio. We’ll sell our position should it reach the indicated SellAt price, currently $97.06 versus the current market of $92.49.
Recent Removals From The SuperGrowth MultiBaggers list:
CHCT - Community Healthcare Trust Inc
CODI - Compass Diversified Holdings
COKE - Coca-Cola Consolidated Inc
CPRX - Catalyst Pharmaceuticals Inc
CWST - Casella Waste Systems Inc
FND - Floor & Decor Holdings Inc
IMOS - ChipMOS TECHNOLOGIES Inc
MMMB - MamaMancini's Holdings Inc
NATR - Natures Sunshine Products Inc
NBIX - Neurocrine Biosciences Inc
NGVC - Natural Grocers by Vitamin Cottage Inc
Analyst's Disclosure: I am/we are long PGR.
We offer this research as insight into what we do in our own portfolio rather than as a recommendation or offer to buy or sell securities. This research should not be your sole source of information. It is based on probabilities, not certainties.
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