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Thursday AM July 9th, 2009

image of Fortune Small Business Magazine coverThe Fortune Small Business top 100 fastest-growing companies include nine Texas companies. The magazine’s Adriana Gardella says there are two companies from Houston.




“Number six is KMG Chemicals and number seven is OYO Geo Space, and they were number six and seven on the list.”

Ed: “What is the methodology?”

“Well, the first thing we do is we only consider small public companies in the U.S.  You can’t have annual revenues of more than $200 million, and they must have a stock price greater than $1.  So we rank them by revenue growth over the past three years, and this year we added a new requirement that they have no negative growth in any of the most recent four quarters.”


Gardella says the process involves an initial list of contenders that’s whittled down to a hundred.

“It’s 100 per cent determined by our researcher, which is Zacks Investment Research–a firm out of Chicago.  And they’ve got mathematical formulas that they apply and they come up with the unedited list, and then we’ll go through that and make sure, you know, that there aren’t any non-U.S. companies in there.  Companies in all industries, whether it’s energy, technology, healthcare is always a big one, healthcare administration, manufacturing.  We don’t allow banks on the list, for example, because then the list would be nothing but banks, so last year I think we had 25 technology companies.  This year we’ve got 30, so there’s a slight growth there.”

A Waco company tops the list. Life Partners works in the secondary life insurance market, offering those 65 and older the opportunity to sell their future life insurance benefits for a cash payout.

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