I made an 80.7% return in seven months investing in Neo Group when I chanced upon the company when reading the newspaper. This is a classic example of being observant and being able to spot potential investment ideas as you go through the activities in your daily life.
Neo Group caught my eye because they posted a 293.6% gain in net profit for 1H2014. I have a habit of being curious when a company suddenly posts a huge gain in their quarterly report. I wanted to find out what caused the jump in profits and, more importantly, whether it was sustainable and could be repeated in the second half of the year.
Before I share my research and the business catalyst that spiked Neo Group’s profit, let’s have a brief understanding of Neo Group’s business model.
Neo Group’s Business Model
Neo Group is the largest catering company …