Inexperienced investors often make the mistake of buying shares in loss-making companies with a good story, but these high-risk investments may never pay off. However, some investors have adopted a more traditional strategy by focusing on profitable companies like Focus Technology (SZSE:002315). Focus Technology has experienced significant growth in earnings per share (EPS) over the past three years, with a 23% annual compound growth rate.
The company’s increasing EPS and revenue, along with a growing EBIT margin, suggest sustainable growth and a competitive advantage in the market. Furthermore, insiders own a significant portion of the company’s shares, aligning their incentives with those of ordinary shareholders and potentially signaling future value creation.
Despite the positive indicators, there are still risks associated with investing in Focus Technology, as with any stock. It’s important for investors to consider all factors, including CEO compensation and insider transactions, before making investment decisions. While the company’s performance may look promising, it is essential to conduct thorough research and consider all potential risks.
Ultimately, Focus Technology’s growth and underlying strengths make it a company worth keeping an eye on for investors seeking growth opportunities. However, it’s crucial to remain vigilant and informed about any developments that may affect the company’s performance in the future.
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