Recognizing Value Situations - Growth Kickers

Recognizing Value Situations - Growth Kickers

From time to time, relatively steady companies come up with small subsidiary businesses, sometimes related and sometimes not, that can perk up business growth.

Telecom companies got into the cell phone business and 3M is sticking with the Post-It boom. Twenty years ago, the growthless Southern Pacific Railroad started using its right-of-way for telecommunications lines in a business that eventually became Sprint.

These kickers can kindle grwoth, rekindle growth, and provide good, saleable assets downstream. They may be like finding chunks of chicken in a bowl of soup - not there in every spoonful and maybe not there at all. But when a big company crows about a small new product or business development in its portfolio within its ranks, keep your eyes open.


Also read:
Recognizing Value Situations
Recognizing Value Situations - Growth at a Reasonable Price
Recognizing Value Situations - The Fire Sale
Recognizing Value Situations - The Asset Play
Recognizing Value Situations - Growth Kickers
Recognizing Value Situations - Turning the Ship Around
Recognizing Value Situations - Cyclical Plays
Recognizing Value Situations - Smoke and Mirrors