VIT 0.00% 9.6¢ vitura health limited

Shares that could help you retire earlier

  1. 93 Posts.
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    Well said. The source :
    http://www.********.au/2016/06/03/2-small-cap-shares-that-could-help-you-retire-earlier/


    When it comes to an early retirement, some investors might think that trying to strike it rich with a speculative mining or biotechnology company is the way to go.
    While there is a very small chance that this could happen, history shows that the odds are stacked heavily against this strategy.
    Instead, I think a better option is to look for small cap companies that are actually generating revenue and making profits with a clear path for future growth.
    Two small caps that meet this criteria and look to have bright prospects ahead of them include:

    Vitaco Holdings Ltd (ASX: VIT)
    Following an impressive debut back in September 2015, Vitaco shares have seriously underperformed mainly as a result of unrealistic market expectations. Many investors were unfairly comparing the vitamin and nutrition company to Blackmores Limited (ASX: BKL) when it was never going to produce the sort of explosive growth that Blackmores was achieving.

    Instead, I think Vitaco should be viewed as a company that will have the potential to gradually increase and maintain earnings year after year.

    The New Zealand-based company operates in a number of health related segments including leading positions in sports nutrition and health foods. The company has a number of market-leading products in Australia and New Zealand and is now developing a platform to expand into China where it can take advantage of its ‘green and clean’ reputation.

    The shares are currently trading on a forecast price-to-earnings (P/E) ratio of around 18.5x which doesn’t appear to be overly expensive on the basis it can begin to make progress on its Asian expansion plans.
 
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