America’s elderly population
has really been picking up the
pace over the past decade…   and
will kick into turbo speed in the
coming years. According to
recent statistics, the percentage
of the United States population
aged 65 years and above is
swelling at four times the rate of
the broader population.
Estimates project that about 80
million US citizens will reach elderly status by 2050, roughly doubling today’s
number.        Centuries ago when the United States was found-
ed, life expectancy stood at a measly 35 years. Can
you imagine being considered elderly by the age of
30? By the turn of the 20th century, expectancy had
climbed to 47 years, and it jumped to 77.2 years in
2003. But many people today greatly exceed even
this 77-year average. Persons aged 85 and over
make up the most swiftly expanding age group.        These figures place roughly one in seven Ameri-
cans in elderly status, and as many as one in four will
be geezers in just a few years. By 2050, more than 5%
of the American population could be older than 85. 11 www.taipanonline.com FEBRUARY 2004 2003 jumped 28% to US$5,540,000—  43 cents per
share—  compared to US$4,342,000 and 36 cents per
share from January through September 2002. This
strong performance resulted in a net profit margin
of 11.7%—  almost three times higher than Fargo’s
industry rivals—  and an operating margin of 17.2% Toss out the tech stereotype        In Fargo’s case, you can throw away a common
prejudice associated with technology companies—
that they all have sky-high P/E ratios. Its current P/E
of 20 alone makes Fargo worth a second look. But
when you consider the average P/E for its sector is
a whopping 82, Fargo looks significantly underval-
ued relative to its competitors. Fargo’s projected
P/E for the end of fiscal 2004 is 18. You’re buying a
bargain, as earnings growth is expected to be 20%.
Over the next five years, the company is expected
to average 18% growth. Sector struggling…  
Fargo flourishing Ever since the economic downturn hit, the tech- nology sector has had trouble creating jobs. In
fact, since 2000, the number of US tech workers
has slumped 11% to 4.8 million. That’s why it’s
vital for companies to get the most out of their
existing employees. Fargo manages to generate
significantly more revenue and income per employ-
ee than its rivals. The company also has a significant competitive advantage in that it has no debt. In fact, it shows a
cash balance of US$9 million.        Such strong management is illustrated by a
superb 21% return on equity, vs. the industry aver-
age of just 6.9%. And if you’re looking for overall
return on assets, Fargo can claim an excellent
17.2%…   while its peers bumble along at a scant
2.6%.        One of the key elements to look for when evalu-
ating a company is the extent of insider ownership.
Insiders own 46% of Fargo. What does that tell
you? To me, it says they are extremely confident
about the company’s future prospects. With num-
bers like this, I’m not surprised. And I’m willing to
share in such confidence, because one thing is for
sure—  increased ID security and terrorism preven-
tion technologies are here to stay.        Take profitable advantage by investing in one of
the market leaders. Buy Fargo Electronics
under US$14.  In order to devote more of our limited print space to bringing you profitable news and information, we are moving the  Taipan  classified ads to our website, www.taipanonline.com. If you are interested in advertising with us, please      email Sara Nunnally at
snunnally@agora-inc.com. Taipan'sClassifieds Next… Solid growth potential from the
“geezerization” of America How you can profit from rising life expectancy Erin Beale