Important Updates for Investors
Carla Pasternak's Premiere Issue of High-Yield International Just
Released
Income expert Carla Pasternak's debut issue of High-Yield
International covers a Taiwanese manufacturer yielding 9.5%... a
rare Mexican monopoly yielding 13.4%... and other top-performing
investments yielding up to 19.0%.
Government's Biofuel Timetable Could Spell +15,900% Growth
+15,900% growth might seem far-fetched... but it's not. In fact, it
is mandated by law. And I've identified the ONLY stock positioned to
capture this growth.
The
Silver Lining to a Falling Dollar
Despite the U.S. national debt, there is a silver lining for income
investors. This massive spending, combined with movement out of U.S.
Treasuries, is going to take its toll on the dollar, and
international income investors could reap the rewards in the form of
higher dividends. |
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| POOL's
Growing Dominance Means Big Gains for Investors |
Published: November 11, 2006
In
many ways, the history of Pool Corp. (Nasdaq: POOL,
$40.54) reads much like a page out of the Wal-Mart storybook.
The company began back in 1993 as a tiny one-store operation on the
outskirts of New Orleans. A little more than 13 years and several dozen
acquisitions later, Pool Corp. has grown to become the world's largest
wholesale distributor of swimming pool supplies -- selling more than
100,000 different products from a nationwide network of 275 customer
service centers.
In 1996, POOL booked a paltry annual profit of $4 million on
approximately $236 million in sales. However, the rapidly expanding firm
has since posted ten consecutive years of record revenues and earnings
-- with those two key measures now standing at $1.8 billion and $96
million, respectively.
Along the way, the company has picked up more than 70,000 wholesale
customers throughout North America and Europe, mostly swimming pool
builders, service companies, and retail outlets.
Of course, this tremendous growth has translated into equally impressive
gains for shareholders. Since hitting the market with a splash at a
split-adjusted price below $1.00 per share, the stock has since soared
to over $40 -- making POOL a 40-bagger!
While that type of growth is simply unsustainable over the long haul,
the company still has plenty of upside potential left.
According to Investor's Business Daily, the base of installed
swimming pools in the U.S. currently stands at more than 7 million, and
another 200,000 are built every year. Naturally, once homeowners have
made the commitment to install a pool, a good deal of routine
maintenance comes with the territory.
With a commanding 50% market share (and no large-scale national rivals),
much of that business inevitably finds its way to POOL. However, by some
estimates, the firm has tapped just 10% of the overall domestic market
-- leaving plenty of growth opportunities for years to come.
Aside from recurring revenues generated from the sale of chemicals,
filters, and other everyday items, the firm has also branched out into
the sale of complementary products like patio furniture, spas, and pool
toys. This area has been growing rapidly -- revenues from complementary
products jumped +35% last quarter, and this segment should remain a key
growth driver in the years ahead.
With a market cap of around $2 billion, POOL is on the threshold of
graduating from small-cap to mid-cap status. However, with incredibly
attractive industry fundamentals and few rivals to contend with, this
entrenched leader should continue marching towards large-cap territory.
Along the way, we expect the shares to eventually approach, and perhaps
even surpass, our $50 fair-value estimate.
Note:
The above article was free advice given by Nathan
Slaughter and Paul Tracy -- the editors of Half-Priced
Stocks. The mission of Half-Priced Stocks is to
help readers identify securities that are trading at a steep
discount to their intrinsic net worth. In some cases this
discount can reach up to 50% or more, giving savvy value
investors the chance to purchase quality stocks for just pennies
on the dollar. To learn more about our Half-Priced Stocks
service, please visit the following link:
https://www.StreetAuthority.com/subscribe-hps.asp |
Thanks for reading!
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Nathan Slaughter
Editor
Half-Priced Stocks, The ETF Authority
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| To receive
in-depth guidance on today's leading value opportunities, plus educational guidance, please subscribe to
Nathan Slaughter's premium value investing newsletter --
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Stocks |
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