I chose these three companies primarily on the basis of their growth, and I made a step forward and included one Chinese social network. Why? First, China is the most populated country in the world, with the GDP growth rate of their economy averaged at 6.8%. This is definitely not something that we could see in the previous years but no one cares about the Chinese economy, primarily because the Americans and Europeans are to a great degree dependent on China, so that they won't allow the Chinese market to crash.
United Therapeutics Corporation
In the time of crises, no industry grows as fast as big medical companies. People always need medications, and since there is an increase in chronic diseases, investing in a pharmaceutical company is a sure investment.
UTC is a biotechnology company focused on the development of products for patients in life-threatening conditions and patients suffering from chronic diseases. The company's main products include Prostacyclin Analogues, Phosphodiesterase Type 5 (PDE-5) Inhibitor, Monoclonal Antibodies (MAbs), Glycobiology Antiviral Agents and Cell-Based Therapy. Its product portfolio also includes Remodulin, Tyvaso, Adcirca, Oral Treprostinil (UT-15C), Oral Treprostinil (UT-15C) Combination Therapy, Ch14.18 MAb, Beraprost-MR, 8H9 MAb, IW001, Glycobiology Antiviral Agents, PLX Cells, and Pulmonary Tissue Replacement and Remodeling.
The company was founded in 1996, and its biggest achievement is engineering artificial lung tissue, which can be successfully used in lung transplantation, or in treating some chronic disease. If we take a closer look at the history of finance and value of the company, we can see the company has had a steady growth since 2009, with no serious downtrends of the company's shares. Between 2011 to 2014, shares stayed in the $40 to $60 range, with slight fluctuations. However, in 2014 a rapid rise of the company has started. The share value is growing constantly. In June 2013, share value broke through the upper limit of $60 and started to rise to the incredible $113 per share in the beginning of 2014. In the middle of 2014, the value dropped to $88, but immediately after that, the staggering growth continued, and in July 2015 the value reached the amazing $188 per share. Since then, the value has gone down, with slight oscillations and it is currently somewhere around $160-$170 per share. However, if we take a look at the trends for the past few years, the same thing always happens at this period. Around June, the share value reaches its peak, then goes down continuously for a few months, and finally starts going up with an incredible speed. Therefore, the next 15 days are crucial in buying these shares for a fairly low price, because, after this period, the price is expected to go up again.
The company's report shows profit of $674 million against $612 million in the previous year. However, the net income from shares has increased from $2.23 in the previous year to $2.55 in this year, but the net profit has dropped from $249 million to $82 million. On the other hand, the company invested in the development of new medications and based its growth on acquisition of other companies. The market value of the company is 7.5 billion dollars and EPS is $3.19.
Taser International Inc. is an American company which deals with developing and manufacturing electronic weaponry, cameras designed for carrying on clothes and digital management evidence solutions. The company is specialized in producing equipment for military and police forces but they have a part of portfolio targeted at general public.
In April 2013, Rialto PD published the results from a 12-month study which showed that Axon Flex cameras helped in controlling police behavior by 88% and reduced the application of force during arrest by 60%. Evidence.om is an online cloud-based solution for managing all crimes throughout the US. This platform serves for transferring data from cameras carried by police officers and employees of other agencies in the US. The analysis and statistics of all crimes happening in the US are based on these recordings.
What is important and encouraging for this company is the fact that over 20 state police departments have ordered their products for their units and that this number is constantly rising. They are slowly coming to the leading position on the markets which have great potential for demand of Taser guns.
Let's turn to the results of the company in the last 5 years. If we take a look at this company in 2011, it is clear that it was stable with a constant price of its shares of $4. It remained stagnant until 2013 when it achieved a substantial increase in profits and value of the company. In 2013, the starting price of shares was $8 per share but by the end of the year, it increased up to $15 per share. Then, a soaring growth occurred in 2014, from $15 to $25 per share, which resulted in value increase by 70%.
Entering 2015 with $25 per share led to reaching their record of 34% per share, unfortunately followed by a dramatic fall to $23 per share. However, this might be an ideal opportunity to invest in this company. Their latest arrangements tell us that this company is extremely favorable and is worth paying attention to and investing in. Military industry has the biggest potential in the world simply because, sadly, the world peace is nowhere near. In the last 2 years, there have been multiple riots, strikes and protests occurring throughout the United States. Not to mention the escalation of conflicts in different parts of the world. It all leads to a notion that this industry will not decline.
The second quarter of 2015 ended with $46 million in Net sales comparing to $37 million during the last year. Operating cash flow reached $10 million comparing to last year's $7.3 million. Every segment of their market is expanding. An increase in sales is reported in every segment with varying intensity from 20-30%.
The results for the first 6 months are the following: EBITDA-Operating Cash flow is $24 million comparing to last year's $16 million; net cash flow increased to $11 million from last year's $6 million; acquiring property rose from 1.2 to 1.7 million for a period of 1 year.
Make the most of this opportunity. Although these shares have never been this low in price, all lead indicators are showing that there is nothing more than just great potential for a successful conquering of these growing markets.
YY Inc. became a corporation on July 22nd, 2011. It is a social network which involves its users into online groups, where they are able to communicate by voice, video or written text by using their personal computers and other portable devices. It allows them to create various groups of users which differ in size and are meant for organizing different projects. It is also used for music, online games, downloading games, dating, e-learning, etc. The company possesses domains such as YY.com, Duowan.com, 100.com, Huya.com, and Edu24oL.com. The company's YY platform, including YY.com, is operated by employees both from Guangzhou Huaduo and Zhuhai Duowan. It is primarily used for commenting on new trending topics and it has also been largely used for playing online Internet games.
The company went public in the middle of 2012. From its initial public offer, shares were constantly rising and were eventually skyrocketing. They have reached their record high by the middle of 2014 at $100 per share. However, after the giant rise, they had a downward trend which reached its limit at $61 per share and now they are rising steadily.
A dramatic fall of these shares may be caused by overall bad results of the Chinese economy. This network is one of the most popular in China, whose economy is slowly becoming the world's strongest economy. It is safe to say that this network has a strong tendency to grow in the future, since the Chinese market is rapidly growing. Every investment into improving and developing this network and attracting more new users will ultimately become a smart investment in the future.
The published results for this year stated 1.4 billion RMB in consolidated earnings, almost twice as the last year's $841 million. Net Revenue reported for this year was 290 million RMB. Adjusted earnings on their portals were 9.86 RMB per share compared to last year's 7.78 RMB per share, which means that growth rate was almost 30%. Operating income was 550 million RMB compared to last year's 443 RMB.
A wise conclusion might be that this company, regardless of its declining value of shares, has achieved phenomenal results and is demonstrating improvement in every segment of its business.