The growth trap
In the same way that value traps should be considered before investing in value stocks the growth trap, which often gets less attention, should be considered when investing in growth stocks. An investor might come across a company that is selling into a large, growing market, with what appears to be a high quality and low cost product. The multiple of earnings or cash flow appears high now, but the future looks upbeat. Unfortunately the bright outlook can very quickly dim. (VIEW LINK)
Glennon Capital was founded in 2008 by Michael Glennon. Previously, Michael worked with some of the best institutional small company fund managers in Australia. In 2007, he received the IMCA Money Management Fund Manager of the Year (Small Cap)...
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