FCStone still Growing!
Maybe it's the fact that FCStone (FCSX) kinda rhymes with Stone Fox that we've liked this stock since it's IPO. Or maybe the fact that they are a commodity risk management company that came public during the great commodity boom. FCSX has generally reported strong results since that IPO but the stock is substantially lower now. Whether because of the credit crisis and counter party risks or bad debt exposure to clients, FCSX was hit extremely hard in 2008. The once highflying stock dropped from $53 all the way to $1.90. Sounds like a stock with huge growth problems, but the market might be surprised to learn that revenue grew by 16% last quarter YoY. Now how could a stock drop 96% yet still grow revenues? The only answer is FEAR. In all fairness the company did report a not loss of $3M in Q4 due to a $25.7M bad debt expense. Of course that impacted the stock and caused undue FEAR that all of their customers would default leaving FCSX holding the bag. Over 2 months have pass...