Top Growth Stocks For 2012

When looking for investments that I believe will do better than the general market I like to find companies that not only are growing quarter to quarter but are projecting revenue growth for the future year of at least 70%. Of course I also look at companies who either have high margins or who have a business model that will provide high margins once the early development stage has laid the ground work for this future growth. There are four stocks that I have identified that either through the companies own projections or analysts estimates are predicting a large ramp up in growth for 2012. All four are in separate sectors which while it may limit the overall return it will also help limit losses if one sector under-performs for macroeconomic reasons that were not foreseen at the beginning of this year.

Augme Technologies  (AUGT)  provides strategic services and mobile marketing technology to leading consumer and health care brands. Using its own patented device-detection and proprietary mobile content adaptation software, AD LIFE™ solves the mobile marketing industry problem of disparate operating systems, device types, and on-screen mobile content rendering. Recently Augme’s subsidiary Hipcricket was called by Frost & Sullivan “The Preferred Provider of High Impact Mobile Marketing Solutions in the United States”

Recent large wins include Ford which can be seen by the QR codes that are now part of most Ford Dealership ads and a large program that has just started up with Mattel’s Hot Wheels brand. The company just preannounced for the 3rd quarter ending Dec 2nd. Revenues were a minimum of $4.4M which is up over 5 times last years 3rd quarter and over 3 times the previous quarter. Estimates from the company have revenues for this year being up 4-5 times from last year. Recent analysts estimates have next years revenues in a range of $34 to $38M which should be around 3 times this years numbers. Margins will continue to grow as their Software as a Solution (SaaS) revenues start to gain traction in the coming year.




Bacterin International Holdings, Inc. (BONE) is a leading medical device designer and manufacturer focused on dermal and skeletal health that designs, manufactures and markets revolutionary bone graft material, biological scaffolds and related medical devices. They also design and produce bioactive, anti-microbial coatings for implantable devices and will be launching multiple products in this specific area in 2012.

One of the companies competitors, Medtronics (MDT), which produces a competing product to Bacterins OsteoSponge called INFUSE ($750M yearly revenue) was recently negatively brought into the spotlight due to recently released follow up studies. Bacterin’s core product, OsteoSponge, is 1/3 the price of INFUSE and a recent positive 2 year follow up study reported the following:

The two-year post-operative, clinical data showed OsteoSponge to be equivalent to rhBMP-2 in achieving an interbody fusion based upon radiographic assessment, CT scans, and quality of life outcomes. Additionally, patients receiving the OsteoSponge graft reported statistically significant less leg pain at one year relative to the rhBMP-2 group.

Recently the company reported 3rd quarter numbers of $7.5M which were 80% higher than last years 3rd quarter. Management is projecting minimum revenues of $30-32M for this year and in the range of $53M-56M for next year which will be up another 75%. Margins are expected to remain in the 75-80% range.