Here are some private companies that may well end up being the growth stocks of the future. Sure, some of these may have questionable revenue models and would certainly be a risky investment, but they are all innovative and forward-thinking in my view. Start your homework now because they're likely to be fast movers if they do issue public stock. Some of these companies are already on their way to going public, but all have carved out a strong niche in their respective industries. Let's hear what you think, did I forget the next Google or include a company that will go the way of the landline phone?
1. Hulu - In an awkward move, both NBS and FOX (Newscorp) joined forces to create Hulu last Fall. The skeptics were abundant but this site created by two media giants quickly became the envy of others. Recent reports indicate that Hulu has been able to monetize traffic far better than YouTube (yes, the venerable YouTube bought by GOOG for $2 billion). The site offers free movies and TV shows from NBC and FOX channels with focused ads (typically from MCD and others). The owner of ABC, Disney, was recently granted access to a 10% stake in the company--no price was made public -- which indicates that the vast ABC/Disney/ESPN family may eventually be on Hulu.2. Tesla Motors - Detroit is failing and the window of opportunity was just knocked out by a governemnt & debt wrecking ball, opening up the space for new comers. Tesla's leader, Elan Musk, who founded PayPal, is a billionaire silicon valley insider and now he's heading up Tesla, which manufactures 100% electric cars. These are just any electric cars, they're extremely sexy - check out the Tesla S (see below pic) slated for production in the coming months (to be sold for under $50K). And oh by the way, Mercedes-Benz just bought a 10% stake in Tesla.
3. Pandora - Do you still listen to conventional terrestial radio? If so, you might also think about cutting the cord on your land line. Yes, Pandora is one of those new fangled technologies that will replace the conventional way of listening to music. It bridges the gap between radio and itunes-- free to paid and back to free. Pandora sprouted up from the Music Genome Project, which matches songs and artists with up to 400 different characteristics. Just say the name of a song or artist and it plays continuous music related to your choice, just sit back and enjoy. The new music revolution just turned positive and is adding massive number of users per month. The Pandora iPhone app is very popular. There's a reason Sirius and XM almost went bankrupt and were forced to merge (other than their large debt loads)...
4. FOREX.com (Gain Capital Group)- The largest market in the world based on $ amount traded per day is foreign exchange and FOREX.com has taken a commanding position in the world forex brokers. With the ability to trade 24 hours a day 5 days a week and with only $250. Did I forget to mention the bottom line? FOREX.com's five year revenue growth was clocked at 849% in 2008.
5. Facebook - Need I say more? 5-6 million new users per week with user engagement that Google would kill for. Oh yeah, Iran's political leader, Ahmadinejad, recently restricted his country's access to the site and then quickly flip-flopped on the decision. Really? Iran doesn't even listen to the rest of the world, but crumbles in front of Facebook in a matter of days? Microsoft already has a stake in FB.
6. Twitter - It's a fad...it's not a fad... I can hear many of you debating now, but the real value is not in the debate, it's in the hard numbers. Twitter's growth rate is impressive and the possibilities of the 140 character minimum technology are endless. Already, Fortune 500 companies are using Twitter to promote products or manage customer service. Here's the 'compete rank' of twitter vs. google (note that twitter is making substantial progress). Larger tech companies are rumored to be sniffing around for stakes in Twit.
7. BigTrends.com - So, if you thought that I'd forget to mention the most obvious future growth stock you were mistaken. With its 10 year anniversary coming in October BigTrends.com has become the leader in premium investment newsletters while offering unparalleled coaching services for traders. Founded by Price Headley, BigTrends offers innovative technical analysis, intelligent market research, profitable trade recommendations, and the best investor education coaching program money can buy.
8. NASCAR - I haven't had the pleasure of joining the NASCAR bandwagon yet, but based on the longstanding popularity and capitalistic structure of the US based racing company there are several ways NASCAR will continue to grow. Being that NASCAR is controlled largely by the French family, it may in the future go public in a variety of ways.
9. First Data - Spun-off from American Express in 1992, First Data Corporation (FDC) handles e-commerce processing services including merchant and bank transactions, credit, retail and debit card issuing and processing. It also provides money orders and paper check processing. In 2007, Kohlberg Kravis Roberts & Co. purchased First Data Corporation and took the company private.
10. Alltech Biotechnology - With its roots diversified into biotech and agricultural feed this company is poised to profit from inflation and advancements in technology. Based in Kentucky near BigTrends HQ, a company to keep an eye on for the future.
Feel free to add your own suggestions, comments, and criticisms of my choices. Remember that the business model of some of these innovative companies may not be fully fleshed out yet.
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