At one time, Amazon.com was a $14 stock. It now trades at $956.
Facebook was once a $20 stock before running to $152.
Netflix once traded at $9 before exploding to $166 a share.
Stocks with that kind of potential don't fall out of the sky every day, but with good research you can find them a few times a year.
Over the years, The Cheap Investor has found several superstar stocks with returns such as 4,093% and 4,851% on ACADIA Pharmaceuticals. EnviroStar (EVI) went up 20 times from our recommendation, returning as much as 1,931% in four years.
The key to that success was careful fundamental analysis, which often exposed opportunities that others chose to ignore.
EVI wasn’t the most glamorous stock, and most analysts ignored it. It distributes commercial and industrial laundry and dry cleaning equipment, and steam and hot water boilers in the United States, the Caribbean, and Latin America. It also supplies replacement parts and accessories; and provides maintenance services.
When we recommended it, EVI was trading at just $1.60 a share, and earnings were exploding. Quarterly revenue had just jumped 30% to $6.44 million. Net income was up as much as 713%.
EVI hit a high of $32.50 in June 2016 for a potential profit of 1931% for our subscribers!
Or look at Electromed Inc. (ELMD). After falling from a high of $2.75 to $1.77, we issued a buy in the August 2015 issue.
Net revenue was up 5% year over year to $5 million. Operating profits were up 47% thanks to a powerful increase in gross margins, which rose to 77% from 69%. Even net income before taxes had just risen 50% to $565,000. At the time, the CEO forecast 70% revenue growth.
Yet for quite some time, Electromed went largely ignored by other investors. We, however, watched as the $1.77 stock ballooned to $6.26 for a potential gain of 254% in less than two years.
Opportunities to earn tremendous profits do exist. It just takes research to find them. In fact, The Cheap Investor unveiled several new opportunities in the July 2017 issue found here: https://thecheapinvestor.com