Topic_7_E1 - Topic 7 Exercise 1 Company Analysis Hot Growth...

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Topic 7 Exercise 1 Company Analysis Hot Growth Companies The challenges at small, fast-growing companies are diverse and hard to predict. The risk is always higher when trying to guide a small, under-capitalized firm through economic turmoil. The performers in BusinessWeek’s top 100 growth companies have benefited from persistence, deft management, innovation and focusing on consumers. The top 100 had average annual sales and profit growth of 28.7% and 61%, respectively, over the past three years. That compares with 10.3% sales growth and a 23.8% profit decline for the Standard & Poor’s Industrials Composite Index. The Russell 2000, a small-company stock index, has risen 29% since March 1999, vs. a 14% drop for the S&P 500 Index. While identifying fast growing companies does not assure high rates of return in terms of stock returns, finding companies with high rates of growth in sales and profits becomes a starting point. Read the June 10, 2002, BusinessWeek article, “Hot Growth Companies,”
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Topic_7_E1 - Topic 7 Exercise 1 Company Analysis Hot Growth...

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