Money to Be Made in Large-Cap
Wednesday, May 17th, 2006
By Mitchell Clark, B.Comm. for Profit Confidential
When I think about the strength in the gold market, I always think about Goldcorp (NYSE/GG).
In December of last year, the stock was trading at $20 per share, now it’s almost near $40 per share. This is a significant accomplishment considering that Goldcorp is a large-cap company.
What it comes down to is that the company is the best at what it does. The company is the best in the business and its financial growth is excellent.
When it comes to large-cap investing, it often pays to pick only the best-of-the-best companies. Caterpillar, which is a company we often talk about this column, comes to mind as one of these type of companies. Joy Global is another.
In the eye care industry (which is an investment theme with excellent fundamentals) one of the best large-cap companies in the industry is Luxottica Group S.p.A. (NYSE/LUX). Based in Italy, this global eye glasses retailer is a powerhouse in the eye care business, and its size gives it major pricing power which goes right to its bottom line.
For a large-cap company, Luxottica is turning out growth-stock type numbers. And, it isn’t so much that the stock is a major winner on the market, it is a consistent winner.
You always want to strive to hold a consistent stock market performer in an equity portfolio. In this case, you aren’t looking for a five- or ten-bagger, just a stock that keeps rising consistently. One or two of these in your portfolio makes it a lot easier to sleep at night.
If you have occasion to pull up a two-year chart on Luxottica, you’ll see a solid, consistent upward trend from $15 per share to its current price of $30 per share. If it was my money, I’d bet this stock will rest a while around its current price, then start ticking higher once again.
So, here is proof positive that you can make a lot of money investing in large-cap stocks as well. Mixing a few into your portfolio could very well pay big dividends going forward.
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Tags: large-cap companies, large-cap investing, large-cap stocks, stock market
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Mitchell is a Senior Editor at Lombardi Financial specializing in small-cap stocks. He’s the editor of a variety of popular Lombardi Financial newsletters, such as Penny Stock Reporter, Micro-Cap Stocks, and Monster Profits. Mitchell, who has been with Lombardi Financial for thirteen years, won the Jack Madden Prize in economic history and is a long-time student of equity markets. Prior to joining Lombardi, Mitchell was as a stock broker for a large investment bank. While Mitchell is not working he enjoys fly fishing, motorcycling and tending to his hobby farm.
