Course 403:
Speculative-Growth Stocks
In this course
1 Introduction
2 Is Sales Growth Outpacing Asset Growth?
3 What's the Growth Trend?
4 Are Net Margins on the Rise?
5 Is the Business Generating Cash?
6 What Has Growth Done to the Balance Sheet?
7 How Has the Stock Performed?
8 Is it Fairly Valued?
9 Conclusion: Numbers Matter

Speculative-growth stocks can inspire dreams of wealth--and nightmares of poverty. These companies are often new ventures selling something people want, generating rapid revenue growth, but incurring high expenses as they strive to become a permanent fixture of the corporate landscape. One might be the next Microsoft MSFT. Or the next Atari. Their defining characteristics are rapid revenue growth but slower or spotty earnings growth--strong sales, in other words, but a lagging bottom line. In fact, many speculative growth companies lose money--lots of it. That's not much inducement to invest. Still, corporate America's future heavyweights and best investments may lurk in this high-risk, high-reward corner of the market. It's possible to curb some of the risk, too. To do that, we'll take a look at Yahoo YHOO, the World Wide Web portal that was one of the hottest Internet stocks of the 1990s.

Next: Is Sales Growth Outpacing Asset Growth? >>

Print Lesson |Feedback | Digg! digg it
Learn how to invest like a pro with Morningstar’s Investment Workbooks (John Wiley & Sons, 2004, 2005), available at online bookstores.
Copyright 2015 Morningstar, Inc. All rights reserved. Please read our Privacy Policy.
If you have questions or comments please contact Morningstar.