Value Investments can be hard to find. The companies that I will profile are all from big emerging economies such as China, Brazil, Indonesia, and Malaysia (to name a few). They are all real companies with consistent and growing revenue streams that have had valid audits. Let's find them together!

Thursday, June 23, 2011

Questions Raised

I was listening to Business for Breakfast on 1060 am the other morning locally here in Denver and Tom and Woody were discussing a stock RYUN  Respect Your Universe.  This stock has been growing pretty steadily yet I can't find much of anything as to what they should actually be valued? 

RYUN posted no income in 2010 and took a lose in 2009?  They have a negative EPS based on ttm and for some reason have a rising stock price?

Is everyone banking on a Dana White type explosion with this MMA clothing brand?  While the MMA sport is growing rapidly and has taken the world into its grips as the action packed bloodsport that it is, most clothing companies that go public, outside of Ralph Lauren trade at most around $5 a share.  A similar clothing line that is public to look at would be Quiksilver (ZQK) since Tapout and Affliction (the two major clothing lines for MMA are privately held).  I chose Quiksilver since it is along the same vein as far as active sports.  Quiksilver has been around and is a leader in the surfing and skating industry for clothing. 

Outside of "well, this company should perform based on the rapid growth of the sport it is a part of" does anyone have a solid argument for why this is a good investment?  Let me know!

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