Stocks Consolidating In Their Niches.
Paul is a member of The Motley Fool Blog Network -- entries represent the personal opinion of the blogger and are not formally edited.
Companies with winning or gaining streaks are emerging on the market. They are companies which have really established themselves and enjoy investor confidence. They are determined to commit their resources and vitality to maintain their hold, and the result is this: An investor’s package filled with new ideas, inventiveness, resourcefulness, and up-trending performance; a goldmine which inspires the most pessimistic of investors to renewed confidence. But as experienced investors warn, a call for caution and deliberate and researched trading is in order.
Will the stocks change? Definitely yes, but not as much as the fluctuations of the market movers, that rise and fall with the changes in investors’ perceptions. However, most of them, if not all, will certainly not tumble from their vantage points in so far as share prices go, unless some really catastrophic event overtakes the market, but the chance of that happening evaporated 3 to 4 years ago. In this sense then, these stocks are safe and sound investing propositions.
Boston Scientific Corp
The Boston Scientifi Corporation (NYSE: BSX) was founded in 1979 and is a worldwide developer, manufacturer and marketer of medical devices. Its products are used in a range of interventional medical specialties, including interventional cardiology, peripheral interventions, neuromodulation, neurovascular intervention, electrophysiology, cardiac surgery, vascular surgery, endoscopy, oncology, urology and gynecology. The company has status and stable.
Johnson & Johnson, Medtronic and St. Jude Medical are the main competitors. The competition will spur research efforts and keep prices down. The company acquired ownership of its long time competitor, Guidant for $27.2 billion. Its ability in acquiring the assets of a competitor shows that the company has a strong financial foundation.
The company engages in a field which will inevitably grow into the future especially with population growth and customer demand for the type of products the company uses and sells. there is also an increasing demand for modern surgery and general medical care by customers. the stocki therefore has the potential to expand and grow into the future
The company is placed in a favourable position for trading having a market share price currently at 5.74 with a slight increase of +0.08 (+1.41%). It is definitely a BUY.
This American multinational corporation was founded as Cisco Systems (NYSE: CSCO) in 1984 and between 1992 and 1994 it acquired several companies and grew with wide acceptance of the Internet Protocol (IP).
Its principle area of operation is the manufacture of modems and routers including the modem access shelves (AS5200) to the core GSR routers which became indispensible to internet service providers on which it has gained a virtual monopoly. Monopoly means sustainable operations because of overall control of demand and supply situations.
The company has created a presence in India by establishing its Globalization Centre East in Bangalore for $1 billion and plans to relocate 20% of its top leaders to work there. It is currently focusing its attention on three market segments; corporate users, small business users and home users. The company has gone international and is entering new markets signalling potential for higher sales and profits. The company is strong and has direction; an assurances of strong future growth.
As of September 28, its share price stood at 19.22 with a slight increase of 0.12 reflecting a percentage increase of just 0.67%. It is a steadily growing stock As such, it is a definite BUY.
Iron Mountain Inc
The Iron Mountain Inc (NYSE: IRM) company, founded in 1951, was awarded three prizes for its performance by the Security magazine in 2008 and was selected by Fortune magazine as the “World’s Most Admired Companies” from 2006 to 2011. The company specifically offers records management to guard against destruction and backup services to more than 120,000 customers throughout North America, Europe, Latin America and Asia in both underground and above ground facilities. It is an international company.
It has acquired more than 200 companies, and in doing so has extended the company's geographic footprint and servicing parameter. As a result, it increased revenues from $3 million in 1981 to $2.7 billion at the end of 2007. In 2008 it was $8.2 billion, netting a profit of $930 million, making it number 314 on the 2009 Fortune 500. In 2011, profits rose to $1.495 billion on $12.7 billion of revenue. The company has a sound financial foundation. Does anyone see any ‘risk’ flashing?. I don't.
In April 2009, the company’s Digital Record Centre for Images was acclaimed as a Product of the Year by the Massachusetts Network Communication in connection with Cloud Computing, virtualization and Data Warehousing/Storage category. Despite many mishaps the company carried out innovative measures to ensure safer storage of its clients’ records and prevent their removal from vehicles. It is a sense of commitment to its clients.
As of September 28, the company has a share price of 34.11 with a slight rise of +0.49 (+1.46%), and coupled with the fact that the need for security will always be with us well into the future, the stock is a definite BUY.
PPL Corp (NYSE: PPl), is an energy company which was founded in 1920 and was formerly known as PP&L or Pennsylvania Power and Light. It received 15 awards for customer satisfaction, more than any other utility in the United States. It is a high performing company and has client confidence which will easily translate into investor confidence. It has status and international standing.
It controls about 19,000 megawatts (MW) of electrical generating capacity mainly in Pennsylvania and Montana, delivering electricity to 1.4 million customers there, nearly a million in Kentucky, and another 7.8 million in Great Britain. It also provides natural gas to 321,000 customers. On November 1, 2010 PPL Corporation purchased E.ON US for $7.625 billion. It is financially healthy.
Its Plaza at PPL Center boasts huge variety of environment friendly features such as a vegetative roof and innovative energy and water-saving devices. To cap it all off, the company was awarded a Gold rating from the U.S. Green Building Council for its use of sustainable development principles. It is an innovative and progressive company; it has direction with a soft spot for the environment like all of us.
PPL is a company with strong prospects. Its share price stands at 29.05 showing an increase of +0.41 (+1.43%). No doubts for me here, just an inclination to BUY if I had the chance.
Similar Stock Category:
The following stocks are very similar to the four examples of winning stocks which we have discussed: Accenture PLC (ACN), Cerner Corp (CERN), Coach Inc (ECOH), Edwards Lifesciences Corp (EW), Watson Pharmaceuticals Inc (WPI) and Cognizant Technology Solutions Corp (CTSH). Each of these companies are worthy of investment.
Rationale: All the stocks possess status which means that they are highly regarded as high performers by clients who may or may not be investors which means that they have an established niche in the market. This is a plus for any company and certainly a prerequisite if a company wants to move forward. They also display sound financial standing, again, an indispensible quality that a company must have in order to be sustainable. Lastly, they have direction meaning that they know what they are doing and where they are going. These are definitely healthy grounds for deliberate and researched approaches to BUY shares in all ten companies.
Tips: I would divide the stocks into two types and implement a two-pronged strategy; a quick profit making strategy on two or three stocks that I am truly confident about (those that will continue to return high ROIs in in the short term), and a less vigorous one on the rest of the stocks for residual income. All the stocks have an established niche and there doesn’t seem to be any indication that something drastic is going to happen to any of them soon. Given this situation, the stocks are all safe and sound investing propositions with hardly any risk involved.
It is now over to you.
Very determined to become an ivestor