Realizing Solid Gains from Good Companies
Thursday, August 2nd, 2007
By Mitchell Clark, B.Comm. for Profit Confidential
Individual stocks are always at the mercy of prevailing stock market sentiment. This is why it often takes time to realize solid gains from good companies. A number of good companies recently reported excellent financial results, many of which have been written up in this column previously.
One of my favorite long-term companies reported great second quarter financial results. VCA Antech, Inc. (NASDAQ/WOOF), reported that its revenues grew 18% to a second-quarter record of $300.3 million. Gross profit grew 20%, while net income grew 21% to $35.8 million. The company also increased its 2007 revenue estimate to between $1.14 billion and $1.15 billion, and its earnings per share are estimated between $1.35 and $1.37. Previously, the company estimated total revenues would be between $1.08 billion and $1.09 billion, and $1.31-$1.35 for earnings per share.
One of my favorite Chinese stocks, China Security & Surveillance Technology (OTCBB/CSCT.OB) just announced that its stock listing will move to the NYSE. This can only help increase the company’s institutional investor base.
First Solar, Inc. (NASDAQ/FSLR), reported outstanding financial growth in the second quarter. The company’s quarterly revenues grew to $77.2 million, up from revenues of $66.9 million generated in the first quarter of fiscal 2007, and up from comparable revenues of $27.9 million generated in the second quarter of fiscal 2006.
Net income for the second quarter was a whopping $44.4 million, or $0.58 per share on a fully diluted basis, as compared to a net loss of $2.5 million generated in the second quarter of fiscal 2006. The company’s latest net income figure was boosted by a one-time income tax benefit of $39.2 million, or $0.51 per share.
This stock has more than doubled since March of this year and despite its high valuation, is likely to keep ticking higher over the coming quarters.
Then there’s SunPower Corporation (NASDAQ/SPWR). The company’s revenues blasted ahead 218% to $173.8 million, up from revenues of $54.7 million in the comparable second quarter.
There is a lot of growth available from the right companies in this market. If you already own them, you can sit back and easily ride out the current turmoil. Like I said in my previous column, now is the time to be sitting on the sidelines.
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Tags: china, chinese stocks, stock market, stock market sentiment
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Mitchell is a Senior Editor at Lombardi Financial specializing in small-cap stocks. He’s the editor of a variety of popular Lombardi Financial newsletters, such as Penny Stock Reporter, Micro-Cap Stocks, and Monster Profits. Mitchell, who has been with Lombardi Financial for thirteen years, won the Jack Madden Prize in economic history and is a long-time student of equity markets. Prior to joining Lombardi, Mitchell was as a stock broker for a large investment bank. While Mitchell is not working he enjoys fly fishing, motorcycling and tending to his hobby farm.



