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VectorVest is the only stock analysis and portfolio management system that analyzes, ranks, and graphs over 23,000 stocks for value, safety, and timing. VectorVest gives a buy, sell, or hold recommendation on every stock, every day and is now available for the U.S., Canada, United Kingdom... More
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  • 3 Stocks For The Long-Haul 11 comments
    Jan 10, 2014 10:59 AM | about stocks: BIIB, ECL, OII

    By Angel Clark, VectorVest

    There I was, doing a little cyber shopping for the holidays, when one of those pesky internet ads that stalk me from site to site actually managed to make an impact. What was this super-duper, wonder ad you ask? It was "10 Stocks to Own Forever."

    What a great concept! 'Set it and forget it' investing - it's like a portfolio crockpot! All you have to do is add a few shares of these splendid companies to your portfolio, check back in a few decades and if everything goes as planned, you should be a multi-millionaire. Talk about a dream come true! But is it true? Do these types of companies still exist? And how do you find them?

    Intrigued and with high expectations, I clicked on the ad and a video started to roll. About 30 minutes later (which seemed like 3 hours), my eyes started to cross from boredom, as the broadcaster introduced exhibit #55 in the case to convince me why I should own 'Forever Stocks.' Sadly, they never had to 'sell' me, I was already convinced (or at least very easily swayed) the moment I clicked on their ad…I only wish I had known that 'Forever Stocks' meant that it would take an eternity for the loquacious presenter to finally deliver something of substance - like a stock pick, a technique, anything but more cotton-candy fluff! Grrrr.

    With no option to fast-forward and no visible light at the end of the tunnel, I gave up the fight and clicked the video window closed. After all, I was just curious which stocks they would recommend (if they actually were going to recommend stocks at some point). I already had my own list of Forever Stocks and I found them in less time than it took the video narrator to introduce himself…and I promise not to make you wait any longer. Drum roll please:

    Biogen Idec (NASDAQ:BIIB)

    Oceanrg Intl (NYSE:OII)

    EcoLab (NYSE:ECL)

    These probably weren't the companies you were expecting. When the topic of 'dream stocks you could retire on' comes up (yep, this actually happens among my circle of friends), stocks like Apple and Google seem to be mentioned ad nauseam - and don't get me wrong, those are great companies! But hey, you stuck with me this long, even if you skipped to the end, so I thought you deserved something more original.

    The secret behind all of these companies, and indeed any stock that you should even possibly consider holding forever, is earnings. These companies all have an incredibly solid, long-term track-record of making money. It should be no surprise to you that investors like that. They like it a lot. They want to be part of all that money-making, so they buy as much of that company as they can vis-a-vis stock ownership, which drives the stock price higher, which makes investors want more, which…aww, you get the idea.

    Anyhow, these are a few of my forever stocks, check 'em out for yourself and see what you think. If you're wondering how I found them, I used a VectorVest Scan named 'Ruler Stocks' which automatically identifies companies with highly predictable earnings, but if you want to find your own, you absolutely can, all you need to do is follow the money!

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.

    Themes: long-ideas Stocks: BIIB, ECL, OII
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Comments (11)
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  • D@yTrad3r
    , contributor
    Comment (1) | Send Message
     
    Iv been holding $OII for awhile :)
    10 Jan, 01:12 PM Reply Like
  • R Naylor
    , contributor
    Comments (7) | Send Message
     
    Angellic! I was also inspecting an old favourite of mine, having just polished the silver from Christmas. Arm & Hammer, a PH adjusted ancient brand name that consistently does lateral extensions. Look at a all periods chart with the EPS displayed.
    10 Jan, 08:24 PM Reply Like
  • mvdoc
    , contributor
    Comments (4) | Send Message
     
    curious that the writer is so enthusiastic about these three stocks but doesn't own any of them.
    12 Jan, 11:54 PM Reply Like
  • VectorVest
    , contributor
    Comments (3) | Send Message
     
    Author’s reply » Actually I just found them through the research for this article mvdoc...and I will also be using options to obtain them and generate income
    13 Jan, 02:10 PM Reply Like
  • aghafir
    , contributor
    Comments (3) | Send Message
     
    I have my own consulting business in Beijing, China. Helping North American companies market and sell their products in China. I use VectorVest extensively in all my stock buying decisions. Good work VectorVest.

     

    Hi Angel,
    Is this right time to purchase the products you recommending? Looking at the three recommendations using "Midas Touch" graphs, I find the 40 day MA RT graphs are all trending down. Would you wait, or buy now based on fundamentals.
    Thanks
    12 Jan, 11:59 PM Reply Like
  • VectorVest
    , contributor
    Comments (3) | Send Message
     
    Author’s reply » I would wait, I always let timing (both market and stock) lead my decisions. Midas Touch should provide a good long-term entry point but might be quite awhile in turning. Consider confirmed calls and stochastic to enter.
    13 Jan, 02:13 PM Reply Like
  • aghafir
    , contributor
    Comments (3) | Send Message
     
    Is now a good entry point?
    I see the Midas Touch RT (40 day MA) are trending down for both OII and ECL, and not that great for BIIB.

     

    What do you think?
    12 Jan, 11:59 PM Reply Like
  • Jesse Tong
    , contributor
    Comment (1) | Send Message
     
    Retired recently, I have more time with the market.
    I want to build a core long time holdings. May be add some VST Midas Touch stocks during C/Up.

     

    Any suggestions?
    13 Jan, 12:00 AM Reply Like
  • VectorVest
    , contributor
    Comments (3) | Send Message
     
    Author’s reply » I think you have a great idea Jesse, just remember to compliment the long-term Midas Touch system with a short-term timer, a moving average crossover (EMA) maybe 10 and 30 day might work well for an entry but check it out on the graph and see how you like it. As far as searches go, Ruler Stocks, Sure Bets and Explosive EPS II produce many great candidates for cherry-picking. Also, watch the strategy of the week for new ideas and strategies that have been performing well (don't try to switch every week, just look to them for inspiration then check the stocks out for yourself and cherry pick with techniques like midas touch and technical analysis
    13 Jan, 04:08 PM Reply Like
  • jamesjesse
    , contributor
    Comment (1) | Send Message
     
    Angel, thanks for the ideas. I always enjoy your tutorials at vector vest. Most often what I do is sell naked puts or vertical put spreads on your recommendations. I would like to see you conduct more tutorials at vector vest. thanks
    13 Jan, 01:23 PM Reply Like
  • jandmamck
    , contributor
    Comments (2) | Send Message
     
    Retired now. I do most of my stock picking by perusing financial cites.

     

    I had been following BIIB for some 18 months and still like it.
    14 Jan, 05:08 PM Reply Like
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