The other day, I reviewed some of the most interesting and successful companies in the eye care industry. I forgot to mention Coastal Contacts Inc. (TSXV/COA), an old favorite.
This small Canadian company trades on the TSX Venture Exchange and sells contact lenses and related eye care products to customers all over North America. The company prides itself on strong customer service, which is why it has such a high level of recurring business from existing customers.
In its latest quarter, the third fiscal quarter ended July 31, 2005, the company’s revenues grew 183% to just under CDN$20 million. The company became profitable, and its stock price has also been doing great.
It just goes to show that you can find great growth stories in this market, even in relatively mature industries. There’s nothing particularly exciting about the eye care industry, but perhaps that’s why it’s so appealing from my perspective…
You see, it offers solid, steady growth. The medium- to long-term fundamentals are great, with the vast majority of this aging population needing some form of eye care service. Let’s also not forget that new technology is creating an entire batch of new eye care services that are becoming more appealing to customers. Due to significant investments made by eye care companies, eye care equipment is getting much better, too. If you haven’t guessed by now, I remain very enthusiastic about the eye care industry as an investment theme. It blends technological innovation with traditional business practices, all with the goal of helping people improve their vision. If that’s not something worth investing in, I don’t know what is.