To maximise your chances of achieving a 10-bagger in 10 years without throwing trying to hit every single ball for six, focus on smaller companies that have:
* strong balance sheets;
* strong cash flows; and
* strong growth prospects.
One such company could be Blinkx (LSE: BLNX.L - news) . According to Google Finance, this £170 million company "has an index of over 35 million hours of searchable video and more than 530 media partnerships, including national broadcasters, commercial media giants, and private video libraries".
Analysts at Daniel Stewart recently forecast 2012 revenues at Blinkx of £79.5 million and EPS of 4.5 pence, putting the company on a 2012 P/E of 13.7. This fast growing rising star of the UK internet industry is the type of company that could just turn out to be a 10-bagger in the years ahead...
from Motley Fool (via Yahoo Finance)
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Comment: Only a ten-bagger? Don't think so. If Blinxk comes anywhere close to achieving its potential should be much, MUCH more than that...
And anyway, a ten-bagger from which price-point? It's gone up to 60p+ from c.13p just since May!
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"According to Google Finance, this £170 million company" so thats about 60p a share = £6.00+ per share
ReplyDeletealso 530 media partnerships is it now 720+?
Good spot. So £6+ a share according to the Fool.
ReplyDeleteMight not take that long to get there, either. A few sets of outperforming results, the launch of Cheep and Miniweb, a few more tie-ups with mobile operators, getting Blinkx Beat onto some tablets, a recovering advertising sector, a bit of irrational exuberance a la Dot Com boom and we'll be there within a couple of years...
Oh, and Canvas - if Virgin and Sky don't succeed in stopping it...
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