Growth Stocks

Growth stocks are companies that are likely to have sales and earnings growth well above market average. Frequently they pay few, if any, dividends. Instead they typically reinvest any extra cash flow to promote further growth. Chosen wisely—according to Pat McKeough’s advice—high-quality growth-oriented stocks can be worthwhile additions to most well-diversified portfolios.

Although growth stock picks can be highly volatile, they can make good long-term investments. They may be well-known stars or quiet gems, but they do share one common attribute—they are growing at a higher-than-average rate within their industry, or within the market as a whole, and could keep growing for years or decades.

And keep in mind that we focus on growth stocks, which have a good long-term history and favourable prospects. We downplay momentum stocks that tend to attract many investors simply because they are moving faster than the market averages, but are liable to fall sharply when their momentum fades.

There’s room for growth stock investing in your portfolio, but make sure you follow our TSI Network three-part Successful Investor strategy for your overall portfolio:

1-Invest mainly in well-established companies;
2-Spread your money out across most if not all of the five main economic sectors (Manufacturing & Industry; Resources & Commodities; Consumer; Finance; Utilities);
3-Downplay or avoid stocks in the broker/media limelight.

pura natural

Pat McKeough recently replied to an Inner Circle member looking for an opinion on this producer of environmentally friendly cleaners. But the market cap for Pura Naturals may fail to reflect the challenges ahead, says Pat.

Q: Pat: A stock that is of interest to me is one that trades over the counter: Pura Naturals, PNAT.

A: PURA NATURALS (symbol PNAT on the U.S. over-the-counter bulletin board: www.puranaturalproducts.com) makes and markets a range of household-cleaning and personal-care sponges that come presoaked in a natural soap solution that absorbs grease and grime without use of chemicals. The company’s environmentally friendly products also aim to repel water and inhibit bacterial growth and odors.


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In November 2016, the company changed its name from Yummy Flies, Inc. Pura still produces and distributes fishing flies and other fishing supplies, along with fly-tying instructional DVDs. However, it looks like the company is now focused on its cleaning products.

Pura has issued press releases saying those products are now in select Target, Whole Foods Market, and Bed Bath & Beyond stores as well as Meijer supermarkets.

The stock began trading in November 2016 as Pura Naturals at around $1.50, and quickly jumped to as high as $3.70. It has since moved down to the current price.

Growth Stocks: Suffered $746,267 loss in the quarter

In the three months ended September 30, 2016, Pura had sales of just $73,284. It lost $746,267 in the quarter. The company holds cash of just $27,356.

On January 17, 2017, OTC Markets informed Pura that it had become aware of certain promotional activities focused on the company and its common stock. That material appeared to tout Pura to investors and encourage them to purchase stock. OTC Markets is concerned the promotional activity has had an effect on trading activity for the stocks.

Pura says it is unaware of the full nature and content of any promotional activity, including a related email newsletter. The company also says that it is unaware of who is behind the campaign or the extent to which newsletters were circulated.

Pura’s cleaning products have a lot of conceptual appeal, but it operates in an intensely competitive market dominated by market giants. Its $75.5 million market cap fails to reflect the difficulty of future success, which is far from guaranteed.

Inner Circle recommendation: We don’t recommend shares of Pura Naturals.

For our recent report on a Canadian growth stock with a distinct niche in the resources sector, read Restructuring sets Wajax up for gains.

For our views on making good choices on rising stocks, read Stocks on the rise: Smart growth stocks to invest in or stocks to avoid.

How important to you are environmentally friendly cleaning products?

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Growth Stocks Post Archives

Growth Stocks: Pura Naturals suffers loss

Growth Stocks: Pura Naturals suffers loss

Pat McKeough recently replied to an Inner Circle member looking for an opinion on this producer of environmentally friendly cleaners. But the market cap for Pura Naturals may fail to reflect the challenges ahead, says Pat.
Q: Pat: A stock that is of interest to me… Read More

Growth Stocks: Liquor Stores N.A expands in the U.S.

Growth Stocks: Liquor Stores N.A expands in the U.S.

Pat McKeough recently replied to an Inner Circle member looking for an opinion on this Canadian alcohol retailer. Liquor Stores is now focused on expanding its U.S. presence, says Pat. But that strategy carries some risk.
Q: Good day, Pat: Could you give me your opinion of… Read More

Growth Stocks: Industrial trend benefits ZCL Composites

Growth Stocks: Industrial trend benefits ZCL Composites

Pat McKeough recently replied to an Inner Circle member looking for an opinion on this maker of fibreglass tanks. ZCL’s sales may be up, but currency rates have tamped down on its earnings.
Q: Hi Pat: Please, may I have your thoughts on ZCL Composites. Thank you.
A: ZCL COMPOSITES… Read More

Growth Stocks: Patterson Companies poised for growth

Growth Stocks: Patterson Companies poised for growth

Pat McKeough recently replied to an Inner Circle member looking for an opinion on this distributer of dental and animal health products. It’s primed to benefit from two growing trends, says Pat, but it faces competition.
Q: Hello Pat & Team: What is your take on… Read More

Investing in Commodity Stocks

Investing in Commodity Stocks

Here are some tips on successfully investing in commodity stocks
There are four primary categories of commodities currently traded on the market: Energy (gasoline, oil, etc.) Metals (gold, silver, platinum and copper) Livestock (pigs, cows, etc.) and Agricultural (corn, cocoa, coffee, cotton, etc.)
Note that resource and… Read More

Growth Stocks: OpenText climbs despite risky strategy

Growth Stocks: OpenText climbs despite risky strategy

Pat McKeough recently replied to an Inner Circle member looking for an opinion on data software provider OpenText. The company continues to grow by acquisition, says Pat. That has both pros and cons.
Q: Pat: What is your opinion of OpenText? Thanks.
A: OPENTEXT CORP. (symbol OTC… Read More

Investing in REITs

Investing in REITs

A REIT is also known as real estate investment trust. Investing in REITs lets you hold income-producing real estate such as office buildings, shopping malls and hotels.

REITs can save you the cost, work and risk of owning investment property yourself.

Owning rental properties can be profitable—but… Read More

Growth Stocks: CAE ready to soar

Growth Stocks: CAE ready to soar

The flight-simulator maker is ready to build on its improving sales with help from a key acquisition and a successful restructuring plan.

CAE INC. (Toronto symbol CAE; www.cae.com) is the world’s largest maker of flight simulators for commercial airlines and… Read More