Companies looking to grow often take its retained earnings and invest it back into the business through research, development, or asset purchases. Fast expansion, however, always bears the risk of not earning a substantial enough return on invested dollars. This method becomes even riskier when a company’s expenditure levels are much larger than the revenue it is currently collecting. The companies on today’s list all have multiples as great as 20 times its Capital Expenditure (CapEx) on current revenue levels.
Ignyta Inc. (NASDAQ: RXDX) – $9.23
Biotechnology & Medical Research
Ignyta Inc. is a United States-based personalized medicine company that develops products and services to customize diagnosis and treatment of patients with rheumatoid arthritis, lupus, and other autoimmune diseases.
- Market Cap: $233,168,472
- Capital Expenditure: $3,117,380
- Revenue: $150,000
- Capital Exp/Revenue: 2078%
Scorpio Bulkers Inc. (NYSE: SALT) – $2.65
Marine Freight & Logistics
Scorpio Bulkers Inc., based in the Marshall Islands, is a company engaged in marine transportation. It is a provider of transportation services of dry bulk commodities. The Company aims to acquire, own and operate a fleet of medium-sized dry bulk carriers. It has offices in Monaco and New York. The Company has contracted and agreed to purchase 28 Ultramax, 21 Kamsarmax and three Capesize newbuilding dry ship vessels, with deliveries scheduled from second quarter of 2014.
- Market Cap: $478,247,988
- Capital Expenditure: $651,505,000
- Revenue: $48,987,000
- Capital Exp/Revenue: 1330%
Asia Travel Corp. (OTC: ATSR) – $1.00
Leisure & Recreation
Asia Travel Corporation operates a travel agency through lease management and a hotel through direct ownership in China. The Company operates Tengda Travel, which has contracted with a number of hotels and golf courses in China to offer reservation services. Tengda Travel also occasionally organizes corporate conferences, exhibits and show events for its institutional customers.
- Market Cap: $177,748,501
- Capital Expenditure: $4,161,630
- Revenue: $455,960
- Capital Exp/Revenue: 913%
TransEnterix Inc. (NYSE MKT: TRXC) – $3.72
Medical Equipment, Supplies & Distribution
TransEnterix Inc., formerly SafeStitch Medical, Inc., is a medical device company that is focused on the development and future commercialization of a robotic assisted surgical system called the SurgiBot System. SurgiBot is designed to utilize flexible instruments through articulating channels controlled directly by the surgeon, with robotic assistance, while the surgeon remains patient-side within the sterile field. The flexible nature of the SurgiBot System would allow for multiple instruments to be introduced and deployed through a single site, thereby offering room for visualization and manipulation once in the body.
- Market Cap: $244,063,215
- Capital Expenditure: $2,174,000
- Revenue: $401,000
- Capital Exp/Revenue: 542%
Etrion Corporation (TSX: ETX)
Independent Power Producers
Etrion is a Switzerland-based independent power producer (IPP) that develops, builds, owns and operates utility-scale solar power generation plants. The Company owns 130 MW of installed solar capacity in Italy and Chile. Etrion also has 34 MW of solar projects under construction in Japan and is actively developing green field solar power projects in Japan and Chile. Etrion’s 60 MW portfolio of solar photovoltaic (PV) projects in Italy generated more than 100 million kilowatt-hours (kWh) of electricity. The Company has one reportable segment, the renewable energy segment, which includes the Group’s solar power projects. The Company focuses on countries with solar irradiation and government incentives for solar power production, specifically feed-in-tariff (FiT) environments such as Italy. It also focuses on power purchase agreements (PPAs) with industrial clients in the Americas.
- Market Cap: $110,733,396
- Capital Expenditure: $154,269,000
- Revenue: $49,628,000
- Capital Exp/Revenue: 311%
