ipfmanager (98.49)

Recent IPO's with crazy growth potential. Who's with me?!

August 19, 2009 – Comments (0) | RELATED TICKERS: MELI , COMV , CMG

I don't know how you could have looked good if you had your IPO the past couple of years.  Investors lose risk tolerance very quickly and most IPO's are not going to show a profit.  Without any other reason but that, one could see an IPO's share price shink by 25-50%.  So as the dust is settling, I'm finding a few tickers with some pretty attractive growth potential.

CMG-Chipotle Mexican Grill  This looks like a Panera-type growth story in the making...oh wait, they already have more stores/employees, and a bigger market cap than PNRA.  CMG has big growth, they're reinvesting in themselves which is bound to be profitable because of their simple business model.  Over the past year they've had a relatively low P/E (of 22ish) for such a new company.  They also have a solid balance sheet, their income has grown, growth estimates have been steady and yet the stock is 40% off it's high in 2007 when the estimates were (almost) the same.  Oh, and I love Mexican food so much that when I can't get any I'll eat a fist full of knock-off drugs from a Tijuana pharmacy just so I can hallucinate enough to picture myself eating a burrito.   

COMV- Comverge. Ever wanted to sell energy back to your electric company? Stick with COMV! This the only consumer based smart grid idea that I could see working since no matter what type of alt energy becomes popular- you will need COMV.  Better yet, they even have a technology that actually works at this moment in time unlike most smart grid companies.  Although COMV needs to become profitable for you to have equity in 5 years, like the others it is a new company with ridiculous potential. And they are coming closer to profit....

MELI- MercadoLibre- The Latin ebay/amzn. Since their IPO they have had a secondary offering, starting looking into aquisitions, re payed some debt and started a stock repurchase program... That is insanely amazing for a new company in a cruddy economy.  They deserve a gold star for that...and a P/E of 50.  The good news is that their PEG is 1-ish so at least the P/E could be justified.

Could you make a profit or grow earnings in this economy?  These guys did....I was going to ask you guys which one you think I should buy.  Now that I think of it, I'm not going to chose 1 to buy, I'm probably gonna get all three. Unless someone can prove me wrong....