This Company’s Corporate Earnings Might Surprise the Market
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One way to look for an investment opportunity, finding companies that will grow their corporate earnings over the long term, is to look for situations in which there is an unmet demand.
Recently, the Federal Deposit Insurance Corporation (FDIC) conducted a survey; the results were a shock to me. Approximately one in 12 U.S. households currently has no bank account—that’s roughly 17 million adults. A further 20% of U.S. households are currently under-banked, meaning they have a bank account, but they also use check cashing services and other alternatives. (Source: “Margin Calls: Life on the edges of America’s financial mainstream,” The Economist February 16, 2013.)
This is an investment opportunity for firms willing and able to service this market. Companies should be able to increase their corporate earnings by widening their clientele, since the traditional market is becoming quite saturated.