In this market it is tough to find the right trades as an overall consolidation makes it rough to find bottoms and play the right trades. As we mentioned in Smart Play For The Smart Phone we see value in many waning stocks such as RIMM. As our readers should know by now you make the best money buying when others are selling and selling when others are buying. Today is no exception we are calling a special alert on VistaPrint traded under symbol VPRT. Why you say?
Well first off it just took a major jump off a cliff and prices are way lower in the last few sessions. On top of that earlier this year it was nearly double the price it is now. Can you say bounce play?? Not convinced? Consider the following:
No matter your opinion of Vistaprint, you cannot argue with its amazing history of profitable growth. The company has grown from $6.1 million in revenue in 2001 to $670 million for fiscal year 2010. That’s a 69% compounded annual growth rate — all done organically.
Vistaprint fast facts:
| Market capitalization | $1.5 billion |
| 3-year revenue growth (annualized) | 37.8% |
| 5-year revenue growth (annualized) | 49.1% |
| Cash & investments | debt | $172.3 million | $5.2 million |
| EV / EBITDA | 10.8 |
Source: Capital IQ, a division of Standard & Poor’s.
EV is enterprise value, which nets out the company’s debt and cash position. EBITDA is earnings before interest, taxes, depreciation, and amortization.
Research shows with Vistaprint, you have a company with an enterprise value / EBITDA of about 11, growing at more than 20%, with a rock-solid balance sheet. Add in an additional 1.6 million new customers during last quarter and a reliable revenue base comprised of 67% repeat customers, and you’ve got the makings of company on a mission.
Sound like a story you might of heard before; thats because you have, a formerly unknown company called Amazon (AMZN). So what should you do? That is for you to decide with the help of your adviser and your own due diligence but for us, we already are buying the stock and recommending it to our friends and readers. Want research up to the minute; then follow us on Twitter.
