Winners Do Come Around
You have to love a stock market winner. Not surprisingly, a rising stock price usually means that there is something really good happening with a business.
When a stock is doing well, just about everyone shares in the success (sorry about the pun). Business is likely very good so the owners of the company are happy. Employees are working hard to meet the needs of customers and they most likely are participating in a profit sharing program. And let’s not forget those crafty little people called investment bankers. If the stock they helped bring to the market is going up, they get showered with accolades and large bonuses, which in turn, filters down throughout the economy.
So, when you find a stock market winner, a lot of people can benefit. Recently in this column, I mentioned a medium-sized company that listed on the NASDAQ only three months ago. As you may recall, the company is H&E Equipment Services Inc. (NASDAQ/HEES) and as luck would have it, business is really booming.
The stock was officially sold at $18 per share, but opened higher on the market when it first began trading. Now it’s trading over $37 per share in a solid uptrend that looks fairly intact.
The great thing about this stock market winner is that the company isn’t very exciting. H&E rents and sells aerial platform equipment, cranes, earthmoving machines, and industrial lift trucks. One could argue that this isn’t a very glamorous business to be in, but you can’t argue with how successful the company is.
Finding stock market winners on a consistent basis isn’t particularly easy, but they do come around every so often. In H&E’s case, the company is successful on many fronts. Business is great and the company is expanding its operations. Financial results are growing significantly and the company’s stock price is going up. The company’s been a great success right from the first day it listed on the NASDAQ.
From just about any standpoint, H&E is already a true stock market winner. In this case, it might be wise to just jump on the bandwagon for a while. In my experience, successful companies and successful stocks have a tendency to remain that way.