Where Did You Spend Money Lately?
The following article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.
You can buy Stocks that you believe in
Recently, I was reviewing some stock charts on top performing businesses that are publicly traded. I was delightfully surprised to see many of my favorite companies which I regularly patronize on the leading-stocks lists. The question that this exercise forces us to examine is: where have you been spending your dollars lately? If you have been to the typical strip-mall, used technology, priced transportation, or paid for health care, there are generally businesses earning revenues from your monthly home-budget or generalized business spending.
As Charles Schwab once implied, it is not difficult to sell a prudent investor a Utilities Mutual Fund because they inherently know that their energy bill has never gone down. What I mean is to follow the money and your budget before investing in the stock markets. It is sometimes the perfect gut check to determine if a stock represents products and services that you know and believe in.
Some of the stocks on the lists that I have noticed in the last year are:
1. Family Dollar (NYSE: FDO) - Quick and easy purchases of supplies and food for home, hygiene, kitchen and more. Both businesses and home budgets spend money here.
2. Monster Beverage (NASDAQ: MNST) - The Big Energy Business - Between Red Bull and the rest, the non-alcoholic drinks that are enhanced with: Amino Acids, Proteins, B- vitamins, and more are hot stocks where big companies might want to buy them out.
3. GNC Holdings (NYSE: GNC) - While the economy is really bad, people are still taking care of themselves, watching their weight, and using holistic treatments rather than expensive alternatives.
4. Michael KORS (NYSE: KORS) I have not personally bought their products, but this company typifies the spending that is occurring in this bad economy. While folks may not have enough for a new car or home, the hardest working are buying "big brand" watches and jewelry for personal satisfaction.
5. VISA or AMEX - The credit card and merchant companies are making more and more money charging fees, interest and more while reaping revenues from both buyers and sellers. Loyalty rewards and points continue to be drivers of the use of cards.
6. TripAdvisor (NASDAQ: TRIP) and other travel related companies such as CTRIP in China and Priceline keep on growing
7. Various Pharma or HealthCare Stocks - Do your research. Some companies are well positioned to benefit from Obamacare or revolutionary patents and cures.
8. Panera Bread (NASDAQ: PNRA) - Another mall based quality cafe that draws from the visibility and traffic of their approximately 1500 locations.
9. Chipolte Mexican Grill (NYSE: CMG) - About 1200 locations to eat in or take out where many locations are next to or convenient to other business or shopping areas.
10. Apple (NASDAQ: AAPL) - If you have one or if your lady has one, then you know.
11. Verizon (NYSE: VZ) - One of the many service providers. If you have a phone, you will need wireless service for phone, data and more.
12. WalMart (NYSE: WMT) - With the discount super-locations, you can fill your basket with food, supplies, clothes and more at low prices.
13. Mosaic - Feed and Fertilizer - Feeding the Animals and Plants that feed you. (NYSE: MOS)
14. Dollar Tree - Cost effective products from discount outlets. (NASDAQ: DLTR)
The other areas where we all spend money which may be very emblematic such as: Auto, Fuel, Insurance, Health Care, Medicine, Security, Internet Services and more. If you are having trouble remembering where all of your money goes, take a look at your checkbook statements or your credit card statements.
In the end, I would not encourage people to buy any stock that is overpriced or that has too much downside. However, the fact that many of these companies have done well in the worst economy in 80 years, the proof is in the performance. What is also amazing about many of these stocks is that they are companies that represent brick and mortar, they have physical locations in both urban and smaller cities, and many of these companies are even situated within the same mall locations.
Dr. George Mentz is a world recognized wealth management analyst and professor who has authored several revolutionary books. Prof. Mentz, an international attorney, has been a keynote speaker globally in Asia, Arabia, USA, Mexico, Switzerland, and in the West Indies. Mentz can be contacted for speaking engagements at www.gmentz.com or www.managementconsultant.us *No tax investment or legal advice provided herein. Please consult with a licensed professional in your jurisdiction before making any important financial or legal decision.
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