5 Explosive Growers to Buy or Watch: Heckmann Corporation (HEK), Spectrum Pharmaceuticals, Inc. (SPPI), Mesabi Trust (MSB)

Page 1 of 2

When seeking stocks for your portfolio, it makes sense to look for growing companies, and rapid growers understandably can be particularly enticing.

Below are a handful of companies with impressive revenue growth rates over the past three years. Why look at revenue growth? Well, while it’s true that the bottom-line profit might be most critical, it’s hard to grow your bottom line unless your top line is growing at a good clip.

Heckmann Corporation (NYSE:HEK)

Company 3-Year Annualized Revenue Growth
Brookfield Infrastructure Partners (NYSE:BIP)
271%
Heckmann Corporation (NYSE:HEK) 92%
Spectrum Pharmaceuticals (NASDAQ:SPPI) 85%
MAKO Surgical Corp. (NASDAQ:MAKO) 48%
Mesabi Trust (NYSE:MSB) 38%

Let’s take a quick look at each of these, so that you can get an idea of how interesting they are to you and whether you’d like to dig deeper into any of them.

Brookfield Infrastructure, recently yielding 4%, owns many valuable, and productive, assets such as coal terminals, railroads, dozens of port terminals, thousands of miles of natural gas transmission lines, thousands of miles of electricity transmission lines, hundreds of thousands of acres of timberlands, and much more. It operates toll roads and a coal terminal. It’s clearly rather diversified, operationally and geographically — for example, supplying some 98% of Chile’s electricity and being the sole provider of railroad services in Southwestern Western Australia. It’s also a defensive company, as many of its offerings, such as electricity, are not optional. It’s not perfect, but it has a lot to recommend it. The stock has averaged annual growth of 20% over the past five years.

Heckmann is a wastewater treatment and disposal specialist, and has been growing briskly in part due to its work serving the controversial fracking industry and its presence in just about every shale field. (The process of fracking consumes a lot of water, which must be supplied and treated.) Heckmann recently bought the Power Fuels company, expanding its energy services to include more liquid work instead of mainly gas. Heckmann has been unprofitable, but it has been turning that around. The stock has actually mostly fallen in recent years — that’s enough to keep some away, but it makes others wonder whether it’s attractively priced now. Its recent forward P/E of 35 coupled with a 25% estimated five-year growth rate suggest that it might not be quite a screaming buy.

Spectrum Pharmaceuticals is enjoying the success of its colorectal cancer drug, Fusilev — but that success has been partly due to a supply shortage faced by competition. Still, not every biotech company has products actually approved and selling in the market. And on top of that, Spectrum has more than a dozen other drugs in development in its pipeline, and has broadened its scope with the recent purchase of Allos Therapeutics, Inc. (NASDAQ:ALTH), which brought with it a lymphoma drug, Folotyn. The Allos buy is expected to deliver cost savings, too. Spectrum also recently secured rights for the bladder-cancer drug apaziquone and announced a special dividend. Some see the company as attractively valued as well as a possible acquisition target. For example, Spectrum’s share count has risen significantly, though the company plans to buy back shares, offsetting some of that.

Page 1 of 2
Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The 10 Most Expensive Law Schools in the US

The 10 Best Wall Street Movies

The 10 Most Expensive Golf Clubs Ever Sold

The 10 Most Expensive Golf Memberships

The 10 Best Disney Characters Ever Created

The 8 Best Foods for Gaining Weight

The 10 Most Expensive Colleges in the World

The 7 Most Memorable Ad Campaigns of All Time

The 7 Most Expensive High Schools in the World

The 10 Electric Vehicles with the Longest Range

The 10 Cities with the Worst Drivers in the World

The 10 Most Expensive Dresses Ever Created

10 Islands to Visit Before You Die

10 Famous Celebrities Who Needed Rehab

The 15 Countries with the Largest Oil Reserves

The 10 Most Overused Excuses in the World

The 5 Best iOS Apps You Can’t Get on Android

5 Companies Damaged By Social Media Blunders

The 10 Most Legendary Blues Songs

The 10 Most Lawless Places in the World

4 Reasons China is a Threat to the US

The 17 Most Sugary Drinks in the World

The 10 Most Ruthless Rulers in History

The 10 Greatest Generals in History

Top 8 Travel Destinations for 2015

The 10 Safest Dog Breeds for Children

The 10 Most Stolen Vehicles in the US

The 7 Most Expensive Celebrity Weddings

The 10 Best LoL Teams in the World

Top 10 Worst Marketing Campaigns Ever Produced

Top 5 Diets that Help You Lose Weight

The 10 Best Ways to Stay Awake

7 Artists That Switched Musical Genres

The 10 Most Expensive Cities to Live in New Jersey

The 10 Best High Schools in New York

The 10 Countries With the Least Gender Inequality

The 6 Biggest Musician-Manager Feuds

The 10 Countries with the Cheapest Gas Prices

The 7 Most Theatrical Bands of All Time

The 8 Worst Band Breakups of All Time

The 10 Most Important South American Leaders

The 7 Most Successful Casting Show Winners

The 10 Most Peaceful Countries in the World

5 Big Reasons Communism Failed

The 15 Most Famous Carl Icahn Quotes

10 Scary Animals that are Actually Harmless

The 8 Most Famous Singer-Actors in Entertainment

The 10 Longest Wars of All Time

The 13 Worst Looking Foods that Taste Great

The 6 Most Gruesome Injuries Suffered During a Sports Match

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!