Thursday, November 6, 2008
What Happend To All Those Growth Stocks? Their Now Value Stocks!
Hey do you remember 1999-2000 the peak of the Internet bubble? Chances are if you were in the market you owned tech stocks. Anything related to Internet/net working was going through the roof. These stocks were going to make us all millionaires, ha ha ha. Ten years later and we are scratching our heads, and asking what the heck happened. Many of those higher flyer's went bust, I'm talking about the ones with no earnings and market caps the size of General Electric. These stocks were all fluff(a lot of hype) and no stuff(assets & earnings). You may ask what about the growth companies over the last 10 years, what happened to them. Several of these companies have gone from being labeled growth stocks to value. You see folks they really are synonymous with each other, that is value= growth. Price is what you pay and value is what you get. In other words many of these growth stocks are value stocks. Does that mean they have stopped growing, hardly so. This just means these stocks are a much better deal than 6 mos, 12mos, or even 5 years ago. Here are four stocks that are still growth stories that trade at very reasonable values. All four stocks have P/E's less than 15, PEG ratio's under 1, almost no debt, cash in the bank, and all have ROE ratio's above 26%. Furthermore all four have a large amount of insider ownership which means management is on board with the share holders. To boot three out of the four pay a dividend.
Buckle(BKE) priced at $24.89 per share is a retailer of casual apparel for young men and women.
Factset Research Systems(FDS) priced at $36.15 per share provides financial information and data to the investment community worldwide.
Garmin(GRMN) priced at $20.24 per share designs, and manufactures global positioning systems.
Hansen Natural(HANS) priced at $23.01 per share develops and sales sodas, fruit juices energy sport drinks and smoothies offering brands, such as Monster Energy, Lost Energy, and Blue Sky.
* These are not recommendations but ideas to further pursue.
* Author is long HANS.