An Appropriate Stock For This Environment

 

Now that the market is basically moving sideways (at least for now), it gives us an opportunity to own specific ETFs and companies.  Because while the market moves sideways, there are plenty of companies running up right now.  Or, they should be running up based on their business and fundamentals.

One company that may be the perfect stock for this environment is FTI Consulting (FCN).  This is a company that provides forensic and litigation consulting all over the world.  They consult companies to help them through financial difficulties, maybe mergers & acquisitions.  I think there are going to be a lot of companies that are forced to merge due to the environment.  So, this company consults in that capacity.  Also, they help companies prevent “situations” from arising.  This is a $2.2 billion company that’s been cut in half with the market.  Their earnings are expected to grow about 19% per year over the next 5 years.  But, it’s not necessarily a company that really sticks out from a fundamental standpoint.  It’s a company that is a story stock I call it.  We look at the macro environment around us and then filter down from there what companies make sense.  I’ve written about a refinancing boom that will help companies like Fidelity National Financial (FNF).  We’ve talked about the dollar weakening helping metals like gold & silver.  But, we also have corporate scandal, forced mergers & acquisitions, & companies restructuring.  They need consulting.  That’s where FTI Consulting (FCN) comes into play.  Now, I don’t own them.  I’m still doing the research but I want you to do the research with me.  Post your comments what you find.  Is there a reason the stock hasn’t rallied while the rest of the market has?  I’m still doing my homework.  I just stumbled across this stock yesterday so I’ve just started looking at it from a fundamental & technical standpoint.

FTI Consulting

I’ve told you several times it doesn’t matter where you get your investment ideas from.  What matters is what you do from there?  You don’t run out and buy something just because I say it’s good or someone on television or on radio.  Heck, it doesn’t matter if your favorite uncle at a Christmas party gives you a “stock tip”.  There’s nothing wrong with that.  But, buying a security strictly based on something someone else says is wrong. So, do your homework.  But, this could turn out to be a longer term investment over the next couple of years as more and more companies will need their services.

You may say to yourself, well Karl surely has done the research on this one.  I can trust him.  Pretend I’m your drunk uncle at the Christmas party that just gave you a stock tip.  Proceed with caution.

Disclaimer: I don’t own the stock mentioned above at this time but as always may purchase it any time without notice.  This is not a recommendation to buy or sell this stock or any security mentioned in this article.

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