Most Profitable IPOs in the Last 25 Years
The stock market always has losers and winners – some companies lose or win more than others. While trading, most investors look forward to making the right decisions, preferably investing in companies that will lead to higher profits over the long-term. Additionally, traders in the stock market are usually looking for growth potential while choosing whether to invest in a firm that is about to go or has just gone public. Some companies, over time, have realized very high rates of growth regarding profit over the long term. Below, we analyze some of the businesses whose share values have grown by more than ten-fold since the year 1992. Common themes of higher revenues, consistency, and diversification have led to the high rise in value that we shall see below.
- Kansas City Southern
Back in the 90’s, this company was the combination of a railroad transportation company as well as a finance management firm. However, the entity within the company that was involved in the administration of funds decided to break off its partnership and go public on its own, being traded under the ticker JNS. At the time, offering financial advice and planning was highly profitable for Kansas City Southern. As such, the separation took a toll on them. However, the company’s railway ran along the Mexican border, and as such, they maximized on the market’s cross-border trade. Since the break-off, the firm has climbed by 1051 percent. When compared to its issuance price, however, the company’s stock has increased in value by an astonishing 19,031 percent.
This company is known for its manufacturing of electronic culinary equipment such as ovens, toasters and other electronics used in restaurants. The company held its new release on August 7th, 1987. Since then, its value has increased by 14,330 percent. That means that it has earned investors who bought shares during its Initial Public Offering more than a hundred times their money at the beginning! Middleby owes its growth to the fact that it continues to make innovations in its manufacturing of electronics for kitchen use, thereby staying ahead of the competition. However, a significant boost towards the company’s growth came after the firm merged with Blodgett, a division of Maytag also involved in producing commercial cooking equipment. Additionally, the company’s stock improved as a result of buying smaller firms that manufacture electronics as well as its expansion into international markets.
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A manufacturer of electronics, the company “two six” mainly produces laser parts known as ‘optics.’ These are an essential part of lasers, whose uses vary from eye surgery to the creation of robots. Optics need to be regularly replaced and as such have consistent demand. The fact that lasers are employed in a variety of industries also means that the firm serves a wide market, enabling it to get high-profit margins over time. These have been boosted even further with the increased manufacture of robots and the high levels of mechanization in the healthcare and aerospace industries. They had healthy growth patterns and identified a niche which allowed them to have a defensible market position. This increased investor confidence in the stock over time, causing it to rise by 10,423 percent over the last 25 years.