Who are the emerging companies?
Although the companies that are growing at the fastest rate doesn’t mean that they will be the most successful or produce the most revenue. Emerging companies within a particular industry are a good thing to look at when trying to create an investment recommendation. These companies might be the ones that are being talked about most in the industry within a few years.
CNN Money has recently issued a list of the top 100 fastest growing companies in the country. One of these (ranked #8) was Green Plains Renewable Energy Company who had a revenue growth of 299% this past year. Green Plains is an ethanol-producing company who’s first plant was seen in Iowa in 2007, producing 15 million gallons of ethanol within that year. Now expanding to nine plants (mostly coming from acquisitions), the company is producing over 740 million gallons a year, making it the fourth largest ethanol producer in North America. According to Yahoo Finance, Great Plains stocks are performing well and are rated as a fairly strong buy. Here is their stock history for the past year.
An older company in the industry that is still making strides and listed on the top 100 fastest growing companies list for 2011 is Concho Resources with a revenue growth of 41%. Although this number is not nearly as high as Green Plains’ revenue growth, there may be some factors that make this company a little more appealing as a safer investment. Because this company has been around for five year and has become semi-established in the industry (especially because it has the backing of oil consumption demands) it might have a more stable environment that would protect investments. Within the last year Concho drilled 662 new wells from acquisitions, making it the most active driller in the Permian Basin. CEO Tim Leach stated in the article, “In the last five or ten years, through new technology, there’s been more oil discovered out here than there has been in 90 years.” Promising future technological advancement and continued growth.
Resources: http://money.cnn.com/magazines/fortune/fortunefastestgrowing/2011/snapshots/14.html
http://finance.yahoo.com/q/bc?s=CXO+Basic+Chart
I actually really appreciated this blog, it has great value to the direction we are going with our investment recommendation. I will put Green Plains Renewable Energy Company on my list. They are currently traded on the NASDAQ, and according to YahooFinance they hold a pretty steady current ration (assets/liabilities). This certainly says a fair deal about their company, that number compares favorable to many of the big oil companies are is on par with Chevron Corportion in terms of current ratio. I posted my blog about innovation and discussed the emergence of First Solar Inc. Perhaps these are two companies we can looking towards for potential growth in emerging markets. This was a VERY useful blog (nice graphs too!). Well done Lela!
ReplyDeleteLove this post: I have always been interested as to how commodities affect the market and vice versa. If an economy is expanding, then it will need to buy more oil, increasing demand and driving price up. However, if the price is high, capital that would be used as wages is used resulting in unemployment choking out a market. Way to go Lela, this post is spot on.
ReplyDeleteNice post with clear figures, great introduction of the Green Plains Renewable Energy Company. We should definitely look into this fast-developing company.
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