Strong, Steady, Long-term Stocks
Paul is a member of The Motley Fool Blog Network -- entries represent the personal opinion of the blogger and are not formally edited.
During times of market volatility, it is best to be cautious and to pick your stocks based on sound historical and current data. The strong, steady stocks are heavyweights who have survived the test of time through adaptation, mergers and by-outs. I have selected four such stocks to bring home the point that it is worthwhile to invest in these strong, steady stocks, especially when their prices are at the low end of the scale.
Bank of America (NYSE: BAC)
Bank of America is, according to Forbes, is the third-biggest company in the world. It developed from humble beginnings in 1904 as the Bank of Italy, survived two World Wars and the Great Depression, and engaged in various merging activities from 1998 until 2008 to attain its present prestigious and sustainable position. The company engages in consumer and corporate banking, finance and insurance, investment banking, mortgage loans, private banking, equity banking, and wealth management.
For its future direction, the bank has implemented ‘Project New BAC’ for trimming down its staff from between 13,000 to 30.000 employees, and has created a large consumer banking division for providing financial services to consumers and small businesses.
The bank’s standing in the market today is sound, and is showing signs of very steady trading. Its shares were priced at a low $8.97 at the end of trading Thursday, registering a small change of only $0.16 (+1.76%). Investors who favor safe investing and small but sure ROIs should look towards investing in this company.
Sprint Nextel (NYSE: S)
Sprint Nextel is a large telephone company that was founded in 1899, and like Bank of America, came into prominence in communications through various mergers since the beginning of its founding. It became the Union Telegraph Company in 1903, then the United Telephone Company in 1937, and finally adopted the name Sprint a few years later.
However, it was the merging of Sprint and Nextel that assured the sustainable operation of the company as the Sprint Nextel Corporation. The company’s products consist of broadband, digital ware, music; it is also a carrier of the iPhones 4 and 4S. From 2005 to 2009 it acquired a total of 12 companies, thereby consolidating its position in the communications service category. It is a strong and dynamic company whose products are highly demanded.
As of Sept. 27 the company had a low share price of $5.60, which increased slightly (+2.56%) at the end of trading. This cheap price, coupled with overall status, direction, and sound financial footing are sure signs to buy.
Micron Technology (NASDAQ: MU)
Micron Technology was founded in 1978. It has survived many challenges by timely adaptive innovations such as structural changes and mergers. Today it continues to produce dynamic random access memory (DRAM), as well as NAND, high-speed NAND, eMMC, eUSB, serial NAND, and SSDs. The company is well established, and has an impressive array of products.
Its operations are secure and sustainable, and the company has further consolidated its position by acquiring 763 million shares in Inotera. Micron Technology also made a smart acquisition of Elpida Memory, a memory supplier for Apple which went bankrupt, for $2.5 billion. It is a strong and vibrant company with a sound financial foundation
Competitors in the field include Samsung, Hynix, Toshiba and SanDisK; an impressive array of big players in the telecommunications field. The competition should strengthen Micron Technology’s research efforts and keep prices down, which will breed high sales, more profits, and more ROI.
As of Sept. 27 the company’s share price was at a low $6.02, with a slight increase of 1.26%: another signal to buy into the company.
Cisco Systems (NASDAQ: CSCO)
Another US multinational corporation, Cisco Systems was formed in 1984. Between 1992 and 1994 it acquired several companies and grew with the wide acceptance of the Internet Protocol (IP).
Its principle area of operations is the manufacturing of modems and routers, including the modem access shelves (AS5200) to the core GSR routers. These have become indispensible to internet service providers, which in turn has given Cisco a virtual monopoly in the space. 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 is strong, with attractive products and a sound financial footing. As of Sept. 27 its share price stood at $17.22, with a slight increase of just 0.67%. Like the previous three heavyweights, the company is in a very strong position now, and is prepared for the future. It shows signs of a sure buy.
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So why these four stocks? In addition to being selected as the most active stocks in the market, all of them have several qualities in common. The all have status within their industries; they are all financially strong; they are high performance achievers; they all show a recent uptrend. All these qualities turn on the green light that says buy for the long term and enjoy the returns. Good investing!
tsservices has no positions in the stocks mentioned above. The Motley Fool owns shares of Bank of America. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.If you have questions about this post or the Fool’s blog network, click here for information.