Round-up of My Favorite Wealth Creators
Wednesday, April 25th, 2007
By Mitchell Clark, B.Comm. for Profit Confidential
It’s great when you find a solid, wealth-creating company, then stick with it. Long-time readers of this column know of my affinity for a number of outstanding companies in their respective fields. VCA Antech, Inc. (NASDAQ/WOOF) continues to amaze me with its excellent wealth-creation abilities. The stock is trading right around its 52-week high, and the fundamentals of the veterinary hospital industry are tremendous.
Fuel Tech, Inc. (NASDAQ/FTEK) continues to distinguish itself in the alternative energy/pollution control business. This long-time favorite recently pulled back after an exceptional run on the stock market.
Two other companies that I’ve written about extensively are Omniture, Inc. (NASDAQ/OMTR) and Zumiez, Inc. (NASDAQ/ZUMZ). Both of these companies are leaders in their respective industries, and their stock price performance has been very impressive over the last six months.
Finally, we come to Chinese stocks. Another favorite, New Oriental Education & Technology Group, Inc. (NYSE/EDU), just keeps ticking higher. This stock is extremely expensive, but investors don’t much care. Just about everyone buys into the story of the need to teach English to Chinese students.
I continue to like the prospects for China Security & Surveillance Technology, Inc. (OTCBB/CSCT). One thing I’ve noticed about well-established Chinese companies is that many have exceptional levels of profitability in their operations. I suppose this isn’t unreasonable when you have low-priced labor and well-heeled customers like big government agencies. Last year, China Security made approximately $23.0 million in profit on $107 million in sales. In my view, this is impressive.
So, what does the future hold for stocks? In short, the market is desperate for quarterly earnings news. If the news is good, we may see a flurry of new buying from investors who’ve been sitting on the sidelines in recent months.
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Tags: chinese stocks, stock market
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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.



