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Thursday, 04/27/2017 1:02:07 PM

Thursday, April 27, 2017 1:02:07 PM

Post# of 208
Quick Comparison 2GrowthStocks AMZN and FCHS

First growth?

AMZN 2 year Compounded Growth 23.6%
FCHS 2 year Compounded Growth 73.6% Not even close, that is one of the advantages of smaller companies they can grow so much more than big companies, Amazon was once $50 million in sales, now $440 Billion, 880 times more. Can the keep it up? No impossible that would be $39 Trillion is sales, people do not spend that much even if they only bot things from Amazon.

Is it growth by low profits?

Amazon Gross Profit 1.7% yep looks like they are doing it by selling near breakeven.

How about FCHS? Gross Profit 30%, more than 15 TIMES the Gross Profit margin of AMZN.

How about safety, Price/Book? Amazon P/B = 3.24, not too bad for a growth company.

How about FCHS? P/B 1.43, Much Better
(all numbers from Yahoo) https://finance.yahoo.com/quote/FCHS/key-statistics?p=FCHS

Interesting, FCHS (First Choice Health Solutions) has much higher growth, and in future can grow so much faster than AMAZON in fact Zacks has said FCHS has "Unlimited growth potential" and FCHS has much higher profit margins and FCHS has much better book value too.

So one would think the stock is doing better than Amazon. Well it is. Amazon is up 38% in last 2 years and FCHS is up 84% in the same time.

Sometimes the market is rational.

Comparison Chart FCHS/AMZN

https://finance.yahoo.com/chart/AMZN#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%3D%3D