jump to navigation

Companies That Reported 30% Sales Growth Last Week March 14, 2013

Posted by Ishmael Chibvuri in Latest Articles!!!.
trackback

The companies highlighted below reported earnings last week (03/04 – 03/08). All companies reported positive EPS Q/Q and have a positive Profit Margin.

Company Ticker Sales Q/Q EPS Q/Q
Apollo Residential Mortgage AMTG 338.50% 778.20%
Bitauto Holdings Ltd BITA 56.41% 44.54%
Energy Partners Ltd. EPL 34.38% 438.39%
Homeowners Choice, Inc. HCI 39.68% 91.94%
Main Street Capital MAIN 34.34% 62.65%
AG Mortgage Investment Trust MITT 261.31% 7.37%
Nationstar Mortgage Holdings Inc. NSM 180.55% 233.44%
New York Mortgage Trust Inc. NYMT 642.19% 220.37%
Qihoo 360 Technology Co. Ltd QIHU 76.95% 17.30%
Resource Capital Corp. RSO 33.05% 2523.03%
Santarus, Inc. SNTS 65.01% 149.04%
Sapiens International Corp. SPNS 66.55% 68.84%
Smith & Wesson Holding Corp. SWHC 47.95% 1574.38%
Syntroleum Corp. SYNM 269.22% 78.88%
Triangle Capital Corporation TCAP 36.40% 4.76%
THL Credit, Inc. TCRD 37.98% 7.55%

Data retrieved from Finviz.com

9 out of 16 of the companies are either in the Financial Services industry or Real Estate Industry. Does this suggest that the Bull Run in these sectors is far from over? I do believe so.

1 Year Return vs. S&P 500

(click to enlarge)

1 Year Return of Financial Services companies vs. XLF

(click to enlarge)

Valuation

Company Ticker P/E Forward P/E Industry P/E Sector P/E Sector
Apollo Residential AMTG 3.31 7.28 22.60 37.23 Financial
Bitauto BITA 20.14 9.17 22.38 24.33 Technology
Energy Partners EPL 18.82 5.67 12.28 12.54 Basic Materials
Homeowners Choice HCI 8.07 8.25 15.14 37.23 Financial
Main Street Capital MAIN 9.34 15.25 131.83 37.23 Financial
AG Mortgage MITT 3.53 7.72 22.60 37.23 Financial
Nationstar Mortgage NSM 16.52 6.76 15.89 37.23 Financial
New York Mortgage NYMT 5.71 6.64 22.60 37.23 Financial
Qihoo 360 QIHU 81.75 19.43 22.38 24.33 Technology
Resource Capital RSO 9.27 8.84 85.08 37.23 Financial
Santarus SNTS 58.46 13.21 27.49 27.21 Healthcare
Sapiens International SPNS 22.57 25.67 24.33 Technology
Smith & Wesson SWHC 11.06 8.96 18.27 14.13 Industrial Goods
Syntroleum SYNM 39.79 1.91 13.18 12.54 Basic Materials
Triangle Capital TCAP 13.37 12.18 22.60 37.23 Financial
THL Credit TCRD 12.42 10.12 131.83 37.23 Financial

It appears that equities within the financial industry are the only stocks that have a forward P/E greater than the trailing P/E.

Possible reasons behind the higher forward P/E for stocks in the financial sector include:

  1. Financial stocks are overpriced in the long-term
  2. The EPS expectations and growth are lower than what is appropriate, as they have a very large sales growth Q/Q.
  3. All equities within the financial sector that appear to have a rising future P/E also pay dividends and should be added back to arrive at a better calculation.

Notable ETFs with holdings

ETF # Stocks % of ETF
PZI 09/16 2.33%
EWRS 13/16 0.44%
BIZD 03/16 11.54%

Results from ETFChannel.com

The Zacks Micro Cap ETF has the highest combination of holdings of the mentioned 13 stocks (09/13) and % allocation (2.33%). The only ETF that holds all 13 securities is Guggenheim Russell 2000 Equal Weight ETF, but the total is only 0.44%. BDC Income ETF holds a surprising 11.54% and contains 3/13 of the above mention securities (MAIN, TCAP, and TCRD).

If investing based on an ETF instead of purchasing individual stocks, I would purchase BIZD based upon the findings above. The XLF ETF did not even generate a notable percentage of the holdings detailed above.

I love the idea of being able to trade and invest in ETFs, but leaving my investing decisions in a sector or industry to someone else makes me uneasy. Are the remaining 88.46% of BDC Income ETF companies that I would actually like to invest in? Probably not, but I would enjoy kicking the tires on BDC and seeing how far it can really travel.

Weighting within BIZD out of 25 holdings

Main Street Capital 4.66% 4th highest holding
Triangle Capital 4.76% 5th highest holding
THL Credit 2.09% 16th highest holding

Results from ETFChannel.com

An alternative to purchasing a pre-allocated ETF with 0% control over holdings would be to invest with equal weight. I believe equal weighting, not weighting by market capitalization, is the best strategy.

(click to enlarge)

Comments are welcome and appreciated.

Source: http://seekingalpha.com/article/1269231-companies-that-reported-30-sales-growth-last-week?source=email_investing_ideas&ifp=0

Comments»

No comments yet — be the first.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: