Image : http://www.flickr.com
With so much of thrill, excitement and gloom, we have said goodbye to the last decade. There were a lot of events that called for the set back of stock markets. After the bubble burst of tech to its crash, natural calamities like Katrina, attack of 9/11 and then the worst global recession since 1930's, were some of the events that not only hurt the sentiments of people but also affected the stock markets badly.
As we have entered a new decade, there are a lot of hopes that world economy will resume to its original shape and will start growing with a boost. With such hopes, enthusiastic investors welcomed year 2010 and powered the New Year rally to extend. However, there are several wise investors who want to play really smart and well. Why not, investing wisely is the key to success. For such curious investors, given below is a guide of best stocks of 2000's that performed really well. During the toughest financial times these stocks not only readily recovered from the set-backs but outperformed the entire market.
Medifast (MED) - even during the recent economic downfall, there is one particular sector that survived and retained its health is the healthcare or pharmaceutical sector. Medifast from diet and weight loss emerged as the clear winner and registered its name for title of remarkable player of 2000's. With tremendous growth rate of 9,244% during the last decade, Med left the second best performing stock by 1,300%. A major share of credit for this huge success of Med goes to its diet programs and similar weight loss products.
Green Mountain Coffee Roasters (GMCR)
The last decade proved to be really shiny for this caffeine giant. Green Mountain astonished the entire market with the growth rate of 7,895% for the decade, as reported by Business Insider. With this massive growth, Green Mountain is now dominating the stock market with its shares trading at $ 70 per share while it started only at $ 1 per share in year 2000. This huge success of Mountain is the outcome of the acquisition deal in which Mountain bought Wakefield, Mass.-based Keurig Inc., in year 2006 for $ 104 million. Keurig is now known for the company with single cup brewing. Burlington Free Press said, "If you bought stock in Green Mountain Coffee Roasters a decade ago, you're sitting pretty today." During fiscal 2009 Keurig licensed roasters attain the mark the K-cup shipment 63% up over 2008.
Hansen Natural (HANS)
Following the pathway of risk management as a growth strategy, this beverage company, Hansen Natural posted the 6,504% growth rate since the last decade and backed the title of third-best performing stock of 2000's. The best part of the story for Hansen is that unlike other companies of the same industry, it does not have any operating business of its own. The perfect financial combination of low risk high reward fueled the huge success in Hansen from 2005 onwards.
Bally Technologies (BYI)
Despite of a strong set back in the gambling industry since the recession strike economy, Bally Technologies, the online gambling giant, pre-eminently sustained well. During 2008, shares of Bally dipped a lot but then it rebounded. With the long history of acquisitions, mergers and divestitures, Bally posted 6,395% growth rate for the decade. The credit for this growth rate goes to the company's shrewd acquisitions and efforts to releasing new products continuously.
Southwestern Energy Co (SWN)
Southwestern Energy Co has set an example that the productivity of a determined company cannot be challenged by the powerful events that keep the potential to shake up the economies. Despite of ending the trading at paltry $ 0.82 per share in 1999, this oil and natural gas producer managed to bring its share price to $ 45.75 per share by the end of December 2009. For the decade, this company managed to post the total returns of 5,781% while the increment rate in its share price for the decade is 5,684%. Company is planning further expansion and has several plans for year 2010. As reported by Business Week, SWN has, "increased its 2010 capital budget and projected a 36 percent growth in production, as the company looks to expand its exploration and production activity in the coming year." The reason behind their brilliant growth success is the low cost operations and financial flexibility.
Amedisys (AMED)
Amedisys, the famous provider for alternate-site health care services has made its way from bottom to top and got itself entitled for the best performing stocks of the last decade. It provides home health services to aging American population. Amedisys' total growth rate for the time period 2000-2009 is 3,669.20%. Over 85 % of its growth came from Medicare only. Due to changed government policy, Amedisys served the rapidly increasing aging population and this is the reason it grew with the right pace and at right time. The growth of the company started 2004 onwards when in late 2003 medicare reform became law. Prior to this, AMED shares were at all time low of $ 20 per share.
Deckers Outdoor (DECK)
The soaring popularity of hot brand UGG boots of footwear manufacturer took its share price skyrocketing. A major share of credit to the extensive growth of Decker's Outdoor for the last decade goes to UGG boots only. The posted growth rate of DECK for time frame 2000-2009 is 3,669%. According to the Los Angeles Times, another driving force that led the company's prominent growth is decision that was taken in late 90's to switch "the primary focus of the footwear company to the international market as the catalyst, concluding that, what stared as a small enterprise to clad the feet of Australian surfers now seems intent on world domination."
Terra Nitrogen (TNH)
Implementing a policy that focused on a primary strategy to cater to the high demands better than competition, resulted as the impressive factor for the growth of this Nitrogen fertilizer producer and distributer, Terra Nitrogen. TNH has surged 3,611 % for 2000-2009. Terra has managed to average a 70% return on capital since the year 2006.
Jos. A. Bank Clothiers (JOSB)
For the last decade, this retailer and designer of men clothing has posted the growth of 3,419%. Jos. A. Bank has made its place in the list of best performing stocks of decade in Business Insider. Despite of vicious recession, JOSB has outperformed in 2009. However, the share price of Jos. A. Bank remained low until late 2003.
XTO Energy Inc. (XTO)
In year 2009, XTO Energy Inc. had got all the reason to remain in headlines. In year 2000, XTO acquired two companies while with the end of last decade Exxon Mobil bought it for whopping $ 31 billion. It posted the growth rate of 3,461% from 2000-2009. In year 2007, XTO acquired more than 1 trillion cubic feet of oil and gas reserves in the Rocky Mountains and Dominion Resources, for which it paid $2.5 billion. However, XTO earned the title of largest natural gas producer in US after it paid $4.2 billion to acquire Hunt Petroleum Corporation.
DaVita Inc. (DVA)
DaVita, the famous kidney care company in U.S. has taken its share price $59.60 per share in December 2009 as compared to $5 per share in year 1999. This massive growth rate of 1,200% and 1,236% in share price helped it get enlisted in best performing stocks. DaVita's success lies in their extreme corporate leadership.
As we have stepped into a new decade, the potential investors will look back at the top performing stocks for the last decade. The article files all those top stocks with reasons of their success.
No comments:
Post a Comment