OMG, pure growth investment and even one with a negative earnings through all its recorded life from Jim Clarke! I have to take a photo of this before it disappears in a puff of smoke! Pinch me, I am dreaming! :)))))
Sorry Jim, just kidding. :)
But also, sorry, I don't see what you see in KONA. OK, it might be spectacular growth story in Peter Lynch tradition. But come on, how can you justify buying negative earnings restaurant stock? What we lose in income, we'll make up in volume? I assume it's growing its network and the earnings are negative because of CapEx? But even then, how are you sure that once they stop CapEx'ing, they will be profitable? A lot of restaurants have managed to kill themselves while CapEx'ing. No, sorry, not for me.
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OK, my suggestion. Since HW and WSC are mostly beaten to death by me, I'll suggest CRDN. Nicely killed stock in a profitable high ROE company trading at low P/E. So everyone is sure that their armor is so good that it will last forever and army won't need to buy it anymore. And that USA won't go to any wars anyway come the election. At the current valuation, I am willing to risk on these, especially since CRDN has other possible growth areas. If these pan out, the stock can take out recent highs. So sure the time to buy this was at ~$5 in 2003 or $20 in 2005. But what's wrong with ~$50 in 2007? :) |
