Our long-term portfolio is starting to really come together and look very solid. We have a nice mixture of speculations in the solar industry, autos, blue chips, and even a movement into the fast food industry. The key to long term is that we want to find industries and companies that the potential to grow over the next year, two years, three years. One such industry that is going to be in heavy demand from a standpoint of a post-recession need is employment services. Today, we take a look at a company that will grow with the return of jobs, similar to a Paychex (PAYX), which we already have in our portfolio. This company though gives us an even more direct affiliation with a growing employment field.
Long-Term Position: Manpower Inc. (MAN)
Manpower Inc. (MAN) is an employment services firm that offers help to employees for temporary work, full-time employment, and other employment recruitments in a number of countries: the USA, Canada, the Netherlands, Germany, England, South Africa, and Hong Kong. The company was founded in 1948 in Milwaukee, WI. The company has 4,000 offices in 83 countries, and it staffed 3,000,000 people in 2009 to its 400,000 company client list.
In the USA, the media has literally scared that no one will ever get a job. We will all be unemployed forever. This just is not the case. While trusting the government may be hard to do, there is one thing I know about them. They love their power. They love being in charge, and the only way for them to retain that power is by making the voters happy (I apologize for the government rant, but a few of my readers are skeptics). The above chart is an estimate on the unemployment rate through 2015 down to 5%. Employment is on its way in the USA and the world. That is one of the best aspects of Manpower. The company is well diversified.
The thing about Manpower is that the company was hurt by job cuts and a period of no reemployment. As employment starts to come back to many corporations, MAN will benefit greatly. The company is the middle man between the employer and the unemployed, and they sit very nicely to be at the front end of
- Valuation: FV estimate at $75
- Entry: We want to get involved today at 44.30 and below
- Exit: Long-term
Disclosure: No position