The Daily Double provides a description and valuation of a company whose stock has more than doubled over the last year. Each day, the Fool will review the business, talk about the cause of its doubling in value, and broadly consider valuation.
Our aim is two-pronged. We hope that by concentrating attention on spectacular recent performance, together we'll come to a more thoroughgoing understanding of how and why certain businesses rapidly double in value. But just finding and focusing on the doubles isn't fulfilling. Additional to that task, we'll venture out in search of a fair value for the business.
Is the company artificially puffed-up and prepped for deflation? Or is there still room to run? After all, as noted in The Motley Fool Investment Guide:
Tomorrow's strong companies and stock market heroes typically flock like geese in the high ranges of relative strength.
(MFG, p.138)
By working to classify recent doubles as either burstable balloons, sleek stallions, or -- to break with the cool analogies -- fairly-priced businesses, we will become familiar with the variables of hype and of real horsepower.
Mark Weaver ([email protected]), Louis Corrigan ([email protected]), and Rick Munarriz (TMF [email protected]) have been aggressively studying small companies and will bring keen insight into their valuations here. Weaver has run the Healthcare Industry Area for two years; Corrigan has been a heavyweight reporter for Rogue; and Munarriz has run the Food Industry Area since 1995.
If you have questions about the product, please email any of them directly at the screennames above. Happy hunting, Fools.