A torpedo is an investment that goes up several fold. So, how do you identify such a potential torpedo?
There’s a process and following a few important principles will dramatically impact your investment returns.
Here are 6 characteristics of potential torpedos:
1. They are tremendous innovators
2. They generate excellent sales growth
3. They protect their margins with patents, brands and trademarks
4. They beat consensus estimates
5. They are a start-up, small cap or may be midcap companies
6. They are relatively unknown
Have on mind that a torpedo is usually smaller, sometimes unprofitable and almost always more volatile. These stocks are meant to be held longer term and rough rides should be sit out.
Sven Franssen