Great Growth

January 2, 2024


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the current growth in the financial markets is quite escazo. Around three-quarters of the companies that comprise the S & P 500 published its financial results for the third quarter where less than 90 reports showed an increase in its sales last year and less than 70 showed an increase in their sales and profits. Also you must know that not all growth is good. A company that should be excessively increase the amounts of capital to finance its expansion, either through loans or through the sale of new shares to the public inevitably would increase yields for poor investors. I recently searched among more than 1,500 large, medium and small companies in USA to see which were which had grown in its sales more than 10% compared to last year.

Also I looked for important benefits equivalent percentage to the amount of capital used to create them. Less than two dozen of the companies made the cut, but many of them like Apple (AAPL) and Amazon (AMZN), which grew a lot began to worry about its high price compared with their profits. Below I will present 3 companies that I consider good opportunities and quite accessible. 1) Amsurg with headquarters in Nashville, Amsurg (Omega) currently is recomposing this crisis to start a great growth path. The services provided have to do with the endoscopies, exploratory procedures in areas of optical fiber running through the digestive tract, etc. They have also ventured into the field of laser eye surgery operations, repair of knee and surgical intervention. According to Peter Asaro, who has experience with these questions. But now Medicare reimbursement cuts are affecting the growth of the company.

In its last quarter, sales rose by 11% and earnings per share by 13%, but sales in surgery centers for a long time that had no improvements. However the actions seem cheap at least 13 times in comparison with earnings. 2) First Cash Financial pawn shops and the House of loans go together like assaults and batteries. The first collects high finance charges on loans with high liquidity problems through their personal property as collateral, instead the second does it with payment backed by a claim on future paychecks. Both activities are profitable in good times as bad, but American lawmakers come with bad eyes second choice which speaks well of the actions of First Cash Financial (FCFS). 16% Of the company’s sales come from loans from payment per day, while most of them are issued in the city of Texas, which is relatively friendly to the cause. Growth trends are really excellent in Mexico, where revenues increased by 38% in the quarter’s most recent company (ignoring changes in the exchange rate). Another interesting aspect of First Cash Financial is that its shares are sold to 12 times their earnings. (3) Ebix located in the city Ebix of Atlanta, sells software for the insurance industry: subscribers, exchanges, processors by claims and soon sellers. It is a relatively small company, with sales that have not exceeded 100 million dollars last year, but with an estimated $ 600 million market value. But the business is highly profitable, with more than 40 cents per each sale processed in operating income last year. Ebix shares represent 19 times earnings, which converts them into faces just like the S & P 500 at this time, but estimates that I could see about Ebix speak of increased 24% in their profits for the year 2010.