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

MAKO Surgical appeals to those who have watched robotic surgery giant Intuitive Surgical, Inc. (NASDAQ:ISRG)‘s explosive growth and who wish they could have bought in when the company was smaller. MAKO is a smaller such company, with lots of room to grow, specializing in partial-knee- and hip-replacement procedures. The stock soared 66% in 2009, 37% in 2010, and 66% in 2011, before being sliced roughly in half in 2012 and continuing its fall into 2013. What went wrong? Well, its earnings and free cash flow have remained solidly in the red for years, and the growth of its machines sold and procedures performed has had some hiccups. Some worry, too, about shrinking profit margins if the company cuts its prices to spur sales. Bulls, though, like the new, lower price, and expect sales to keep growing, especially as Americans age and continue to be overweight, putting more pressure on those knees.

Mesabi Trust is a royalty trust collecting a cut of the proceeds from iron mined by a Cliffs Natural Resources Inc (NYSE:CLF) subsidiary — and then paying it out to shareholders as dividends. It recently yielded a whopping 8%, but it’s worth noting that unlike many companies with fixed payouts, Mesabi’s fluctuate over time, along with the fortunes of the mines. In addition, while royalty trusts often have expiration dates, Mesabi’s is rather far away. A possible downside for the stock is a slowdown in demand for ore, which has been one of several issues for Cliffs.

It’s smart to seek out solid growers for your portfolio. Just be sure to buy into them at attractive prices. While some are compelling now, others might take a berth on your watchlist, as you wait to seize the opportunity of a price drop.

The article 5 Explosive Growers to Buy or Watch originally appeared on Fool.com and is written by Selena Maranjian.

Longtime Fool contributor Selena Maranjian, whom you can follow on Twitter, owns shares of Cliffs Natural Resources, MAKO Surgical , and Intuitive Surgical. The Motley Fool recommends Brookfield Infrastructure Partners, Intuitive Surgical, and MAKO Surgical. The Motley Fool owns shares of Brookfield Infrastructure Partners, Heckmann, and Intuitive Surgical and has the following options: Long Jan 2014 $4 Calls on Heckmann and Short Jan 2014 $3 Puts on Heckmann.

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