Motley Fool’s “Obama’s 100-Day Profit Plan” Ad Campaign

More and more of you baby boomers will be retiring , over 75 million Americans and you’ll want to make sound financial decisions, right?  Right!

You might be asking yourselves:   Where do I put the money I worked so hard to save?
What do I invest in?  What companies are good solid investments for the next ten years?

Lo and behold, maybe the answer comes in the form of an e-mail.

I receive an advertising newsletter from the Motley Fool Stock Advisor from time-to-time and recently they’ve been plugging this: “How to Get Rich from Obama’s Stimulus Plan” theme vigorously and often.

What the ad boils down to is this:  They will disclose three companies that they believe are going to make it big from Obama’s economic stimulus plan in exchange for a price.   Fair enough.  They’re smart guys, have been doing this for a while with success, and make good “picks”.   And I have to agree: There has to be some companies that stand to gain from President Obama’s economic stimulus plan.

Just in case you don’t know who “they” are; They are Tom and David Gardener, stock gurus and founders of the “Motley Fool”.
In the letter, clues are provided about the firms they’re baiting.  OK, Great! I’ll bite in another way.  I’ve decided to be the sleuth and guess what three stocks they’re talking about from the hints they’re showing.

So, Let’s begin with the clues and  answers:
Investment #1 in Obama’s 100-Day Profit Plan

• There’s a good chance you’ve never even heard of this company before, though it’s listed on the Fortune 500 and its history dates back over 100 years.
• For decades, it’s commanded a top spot in the transportation sector where it plays a leading role in the construction industry.
• In fact, this company is a top player in the market for transporting construction equipment and materials.
• A role that will no doubt grow exponentially bigger as President Obama’s historic infrastructure upgrade begins.
• One of the things we like best about this company is its smart management team…
• They have a stellar history of being great stewards with shareholders’ money…
• Like generating a strong 21% return on equity and paying out a quarterly dividend every year since 1941.
• Not only that, but in one of the most difficult markets we’ve seen in a long time — but this company and its smart management were able to grow sales at a compounded annual growth rate of 2% over the past three years.
• Amazing, but not surprising…
• You see, this century-old operation has been able to do what few other companies can — not only survive, but thrive no matter what the economic or political climate…
• Through decade after decade, world wars, recessions, stock market booms, and stock market busts…
• Right now, with the market’s recent sell-off, this company is selling at a bargain-basement price.
• Bottom line: This is a stock that could easily double in 2009.

My guess:
CH Robinson Worldwide Inc CHRW:NASDAQ
The Company provides freight transportation services and logistics solutions to companies of all sizes, in a variety of
industries. Founded in 1905. Return on equity is 33.4%, higher than 21%.  OK, that’s different, but in a good way..
I found a piece saying they’ve paid
a quarterly dividend for over twenty-five years. That’s different, but it doesn’t mean they haven’t been paying a dividend
since 1941. It’s in the Fortune 500. It’s in the transportation sector.

Investment #2 in Obama’s 100-Day Profit Plan

• This company plays a unique role in the construction industry…
• They supply hundreds of thousands of parts and tools almost every construction company uses each day.
• And with a market cap of just under $2 billion, this small player is quickly becoming the “go-to” just-in-time partner for the many construction outfits that make up the $140 billion materials market.
• Customers already love this company’s same-day shipping and competitive prices…
• And now with President Obama’s building and infrastructure directives taking shape, look for this supplier to dramatically boost its current market share and lock in a new stream of profits.
• This company also has a history of doing right by its shareholders, including generous stock buybacks and consistently paying a quarterly dividend (in fact, it’s just sent out more than $12 million to its shareholders in just a few weeks).
• Another thing I like about this company is the fact that several key executives own significant stakes in this business.
• Including one insider alone, who owns more than 18% of the shares outstanding.
• Add in the greater market share we see ahead, and investors can look for some big stock gains in 2009 and in the years ahead.

I’m going with Stock Gumshoe on this one.                                                                       Msc Industries Direct Co Inc MSM:NYSE

I’m kind of iffy about investing in this one. There’s been 925,000 shares
sold in the last three months from the largest insider holder.

Investment #3 in Obama’s 100-Day Profit Plan

• Another key initiative in President Obama’s economic stimulus plan is computerizing medical records for all Americans.
• After all the technological advancements we’ve made over the past few decades, it’s almost unbelievable that two-thirds of
• our hospitals and 90% of all U.S. doctors still rely on paper patient records.
• Now with the U.S. population topping 300 million, you can easily see how this type of technology mandate will not only produce better and more efficient health care, but also a huge windfall for key health technology companies.
• In our extensive research over the past few weeks, we uncovered one tiny software company that’s already built a strong position in large medical and dental practices.
• In fact, it’s already been in the early stages of a major uptrend…
• Sales have grown at a compounded 28% per year over the past 5 years…
• Its return on equity is a stellar 35% and…
• The stock has rocketed nearly 700% over the past few years…
• And now that President Obama has given a green light for upgrading the entire U.S. health care system to electronic records — look for it to really take off…
• Right now its balance sheet is rock solid with more than $57 million in cash on hand and absolutely no debt.
• And while most businesses were struggling to survive in 2008, for its quarter ending October 31, 2008, this company posted record revenue… up more than 35% over the same quarter for the prior year.
• A revenue jump that helped boost its stock price 27% while the S&P 500 grew just 2% over the same time period.
• Amazing.
• Add in the fact that the folks who work there are highly vested in just how well this company does — almost 35% of its outstanding shares are owned by insiders — and you can see why this is one company you need to know about and own in 2009.

I agree with Stock Gumshoe again. The company’s a winner. My guess: Quality Systems Inc QSII:NASDAQ

Warren Buffett says, “Only buy something that you’d be perfectly happy to hold if the market shut down for 10 years.”

Till Next Time, Nostradumas