Excellent Growth Typically Doesn’t Happen Overnight

It was October when I last wrote about a particular favorite company of mine. Looking back, I guess I’ve got a lot of favorite companies, but the fact of the matter is that good companies tend to remain that way. You can’t argue with success.

When you’re looking for attractive investment opportunities in the stock market on a daily basis, sometimes you just get lucky. I was lucky enough to find Perficient Inc. (NASDAQ/PRFT) in April 2005. Since then, this company has executed its business plan in a diligent, thoughtful manner. The company never wanted to be a one-time flyer, but rather it aimed to be a consistent grower for stockholders and customers.

Perficient is in the business of selling information technology consulting services to large- and mid-size companies. The company offers design, building, and installation services for just about any technology solution you can think of. Perficient will help an organization integrate multiple software platforms, or it can help a company set up an eCommerce presence. The company was founded in 1997 and is headquartered in Austin, Texas.

When I first discovered and recommended this company, it was trading around $6 per share. Recently, the stock hit a new high of just over $23 per share, and it looks like the uptrend can continue.

Perficient is a great example of a small, but well-established company that can generate excellent wealth for patient stockholders. The stock is now up over 280%. This is outstanding wealth creation, but it didn’t happen overnight. There were some bumps along the road and several months of flat trading.

If a stockholder wasn’t patient during the lackluster trading action, he or she would have given up half the capital gains this stock has now provided.

Perficient wasn’t a high-flyer on the stock market. It wasn’t in the news, but small-cap institutional investors rallied around this company because these investors liked the business and they liked the way the company did its business.

These kinds of investment opportunities are rare. The key is to always be looking for them and pounce when they come to your attention. Perficient is still expected to grow significantly over the coming years.