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
blog comments powered by Disqus
Insider Monkey Headlines
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

Shopaholics Rejoice: The 12 Biggest Malls in the World

Fright Night: 10 Horror Movies Based on True Stories

Mach Mania: The 10 Fastest Jets in the World

Military Heavyweights: The 10 Countries with the Most Tanks

All In: The 7 Richest Poker Players in the World

Abracadabra: The 10 Best Magicians in the World

The 10 Richest Asian Countries in the World in 2014

Eyes in the Sky: 10 Things You Need to Know About Drones

Rising Stars: The 6 Best Silicon Valley Startups

Military Muscle: The 5 Most Advanced Armies in South America

All that Glitters: The 7 Most Luxurious Jewelry Brands in the World

5 Things You Didn’t Know About ISIS but Should

Empowering Your Money: The 5 Best Energy Stocks to Invest In

The 11 Best Android Apps You Can’t Get on iOS

The 10 Most Important International Conflicts in 2014

Mood Enhancers: The 20 Most Uplifting Songs of all Time

Lover Beware: The 8 Countries that Cheat the Most

Breath of Fresh Air: The 25 Countries with the Best Air Quality on the Planet

Singles Beware: The 8 Worst Mistakes Made on First Dates

Healthy and Happy: The 10 Countries with Lowest Healthcare Costs

The 6 Best Company Team Building Activities to Build Workplace Camaraderie

Ships Ahoy: The 10 Busiest Shipping Ports in the World

10 Productivity Tips to Save You Time and Help You Do More With Less

Grab a Bite: The Most Popular Fast Food Restaurants in America

Friday Night Thirst: The 10 Most Popular Cocktails in the World

The 6 Greatest Unsolved Mysteries We May Never Figure Out

7 Useless Products You Never Should’ve Bought

The 5 Reasons Why You’re Single and Miserable

The 7 Most Addictive Foods in the World We Can’t Stop Eating (Even Though We Should)

5 Amazing Places You Can Swim with Dolphins

The Top 7 Most Livable Countries In The World

The 10 Most Expensive Baseball Cards Ever Pulled From A Pack

The 5 Easiest Second Languages to Learn for English Speakers

Silver Spoon: The 6 Richest Families in the World

The 20 Countries with the Largest Prison Populations in the World

The Top 10 Richest Actors in the World

The 10 Best Airline Stocks to Invest In Before They Fly Too High

Burger Kings: The 10 Most Expensive Burgers in the World

The 10 Most Ethnically Diverse Countries in the World

The 10 Most Exclusive Credit Cards in the World

The 10 Most Expensive Cruise Ships in the World

The 10 Fastest Supercomputers in the World

The 10 Best Countries for Doing Business 2015

6 Most Expensive Fruits In The World

10 Worst Airlines in the World

The 10 Biggest Tax Havens in the World to Stash Your Money

The 15 Most Murderous Countries in the World

10 Largest Colleges in the World: Bigger Isn’t Always Better

Comedians in Cars Getting Coffee: The 6 Comedians Seinfeld Needs to Interview

Easy Money: The 10 Most Successful Investors in the World Today

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!