Lawn Care Business Forum Lawn Care Business Book Lawn Care Business Blog Lawn Care Software
Home Forum Contract & Flyer Templates Blog Software Videos Podcast Calculators / Estimators Store Mower Review Design It Yourself Lawn Business School

Go Back   GopherHaul Landscaping & Lawn Care Business Marketing Forum > Business > Money, Finances, Stocks, Bonds, & Investments.

Money, Finances, Stocks, Bonds, & Investments. A discussion on Money, Finances, Stocks, Bonds, & Investments.

Growth Stocks & Business life cycles

Money, Finances, Stocks, Bonds, & Investments.

A discussion on Money, Finances, Stocks, Bonds, & Investments.
Thread Tools Search this Thread
Old 02-28-2011, 02:04 AM
Steve's Avatar
Steve Steve is offline
Join Date: May 2003
Posts: 37,709
Rep Power: 10
Steve has disabled reputation
Default Growth Stocks & Business life cycles

Growth stocks are as those that create annual earning and sales at a faster pace than average businesses.

Now with that in mind, when investing in growth stocks, you have to take into consideration at what stage a business is, within it's life cycle.

A business goes through four separate stages in it's growth.

The first is the Early Development Stage. This is when a company's revenue accelerate and it begins to make a profit.

The second stage is the Rapid Expansion Stage. During this stage, a company will experience rapid growth as it expands outward and capitalizes on the demand of it's customer base. Revenues will grow and profits margins will widen.

The third stage is the Mature Growth Stage. This is a period when the company reaches the peak of it's ability to produce and the market's ability to consume. At this stage, revenues and earnings slow.

The last stage is the Stabilization Decline Stage. This is a period when, either due to a waning interest in the service or product or an increase in competition, revenues will drop. Along with the drop in revenues, profit margins and earnings will decline.

If you invest too early in a growth stock, the company will not have been tested and could have the potential to flame out for many reasons. Lack of capital, poor management, interest in the product or service cease to exist or any other of a multitude of reasons.

If you invest too late in a company's life cycle, it may be close to reaching it's mature growth state, when revenues begin to decline.

Benjamin Graham's view on when to purchase stock in such a company came down to two points. Either purchase it when the stock price has lowered, due to a market correction, that tends to occur during a bear market, or purchase the stock when it is trading below it's intrinsic value.

This intrinsic value is based on the company's assets, it's earnings and dividends and future prospects.
- Subscribe to my Lawn Care Marketing Blog Feed and get daily tips sent to you. Free!
Download your Free trial of Gopher Lawn Care Software.
Reply With Quote

Stop guess-timating. Learn how to estimate and make money! $$$
Mow Time Estimator Lawn Care Price Estimator Mulch and Topsoil Calculator Snow Plow Estimate Calculator



Thread Tools Search this Thread
Search this Thread:

Advanced Search

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is On
Forum Jump

Similar Threads
Thread Thread Starter Forum Replies Last Post
Think BIG and Kick ### in Business and Life Steve General Business Discussions 10 05-07-2008 08:27 PM
Incorporate your Business and your Life. Dreams International Introduce Yourself 5 02-18-2008 11:08 AM
How far will the stocks fall? Steve General Business Discussions 0 01-22-2008 10:23 AM
Two Billing Cycles tiedeman Gopher Software Support Archived Question & Answers - Read Only 4 03-23-2006 08:44 PM
Business growth and improvement for next year? Steve General Business Discussions 2 10-11-2005 08:57 PM

» Recent Threads
  RatingTitle, Username, & Date Last Post Replies Views
02-17-2015 05:25 PM
Yesterday 05:13 PM
by Chilehead
5 936
ATV Plowing and Services...
11-24-2015 07:55 PM
Yesterday 03:37 PM
3 74
Hi, new member looking...
11-24-2015 06:03 PM
Yesterday 12:41 PM
by Steve
1 38
Help a Brother Out -...
01-23-2012 05:19 PM
11-23-2015 05:25 PM
by Steve
90 31,659
Charging customers for...
Hard-Body lawn & garden
04-14-2015 08:34 AM
11-17-2015 11:43 AM
by Steve
20 1,835
First house clean up,...
11-04-2015 06:28 PM
11-14-2015 06:12 AM
by Brian3137
12 919
Leaf removal
11-09-2015 01:17 PM
11-13-2015 08:13 PM
by Bradcook21
8 838
Any feedback on Toro...
Ian Lovejoy
11-12-2015 08:46 AM
11-12-2015 02:59 PM
by Steve
1 432
Don't pick up those...
11-11-2015 08:04 AM
11-12-2015 12:06 AM
by Steve
1 641
buying existing company
11-11-2015 10:51 AM
11-11-2015 06:49 PM
by Steve
1 610
Snow Plowing /...
11-06-2015 06:28 AM
11-11-2015 09:15 AM
by kslawn
8 875
Has anyone created an...
11-11-2015 07:52 AM
11-11-2015 07:52 AM
by mark123
0 559
Buying a business
11-01-2015 12:50 PM
11-10-2015 06:54 PM
by Steve
15 2,125
Rocky Newbe
11-06-2015 06:09 AM
11-09-2015 06:14 PM
by Steve
3 715
Say Hello !!!
03-19-2007 12:18 PM
11-09-2015 06:01 PM
by Steve
1,239 423,685
Scored 2 Freebies Tonight
08-07-2009 04:14 AM
11-09-2015 05:52 PM
by Steve
16 6,203
Customers dodging the...
11-06-2015 06:22 AM
11-08-2015 05:36 PM
by Chilehead
4 723
Starting a mowing...
10-23-2015 06:55 PM
11-05-2015 12:47 AM
by Steve
9 4,104
Property Pricing
01-19-2015 02:46 PM
11-04-2015 06:35 PM
by Brian3137
6 1,985
What am I looking at...
09-14-2015 04:51 PM
11-02-2015 05:53 PM
by Steve
31 5,497
starting organic...
10-04-2015 01:22 PM
11-02-2015 05:46 PM
by Steve
4 4,088
Mister Joe in...
Mister Joe
10-30-2015 08:40 PM
11-02-2015 05:43 PM
by Steve
6 1,885
Three Year In -...
Ian Lovejoy
10-26-2015 11:21 AM
11-02-2015 05:41 PM
by Steve
9 3,988
Mowing golf course
10-31-2015 07:11 PM
11-02-2015 05:03 PM
by SC93
10 1,984
Just landed a nice...
10-29-2015 02:56 PM
10-30-2015 09:39 PM
by Sprinkler Buddy
4 1,956
Credit Cards - What's in...
06-16-2015 04:04 PM
10-30-2015 09:20 PM
by Steve
13 6,690
Hello From Michigans U.P.
09-28-2015 04:48 AM
10-29-2015 11:11 PM
by Steve
6 4,080
Aeration, overseeding...
Ian Lovejoy
10-26-2015 11:01 AM
10-27-2015 05:46 PM
by Steve
1 1,948
Powered by vBadvanced CMPS v3.1.0

All times are GMT -5. The time now is 06:42 AM.

(C) 2011 Riggs Publications - Terms of use & Privacy Policy

All times are GMT -5. The time now is 06:42 AM.

(C) 2011 Riggs Publications - Terms of use & Privacy Policy