A Prescription for Growth

Frequently overlooked in the fundamental analysis of a new investment is the size of the potential market. Large markets offer opportunities not only for a company's sales prospects, but also for a sustained valuation premium of its common stock. Meanwhile, a business addressing a more constrained or defined market will likely have nervous investors always worried about levels of penetration that can trap valuation in what appears to be a cheap level. Having been pinned down by the latter, my experience suggests making sure that your investments have an ample runway for growth.

Considering the timing of this week's JP Morgan Healthcare Conference, I'll focus on two investments in the enormous, but very specific, market for diabetes care....721 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

Read the full story and get access to the Real Money Pro trading floor.

There’s no substitute for a trading floor to get great ideas, so Jim Cramer created a better one at Real Money and blogs there exclusively. We then added legendary hedge fund manager, Doug Kass, with his exclusive Daily Diary and best investing ideas. Staffed with more than 4 dozen investing pros, money managers, journalists and analysts, Real Money Pro gives you a flood of opinions, analysis and actionable trading advice found nowhere else, and allows you to interact directly with each expert.

Already a Subscriber? Please login.

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data provided by Interactive Data. Company fundamental data provided by Morningstar. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by Interactive Data Managed Solutions.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

IDC calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.