No. 5: FedEx
Return as of 3/30: +10%
Investor: Paul R. La Monica
Paul R. La Monica, who writes CNNMoney’s daily “The Buzz” column, isn’t letting go of the patient tack he took in picking shipping giant FedEx (NYSE:FDX).
The title of his latest article, “FedEx: Slow and Steady Will Win the Race” says it all. The company’s 10%-plus returns year-to-date have been better than La Monica expected — and that’s despite a quick decline following poor earnings guidance.
His reasons to select FedEx (NYSE:FDX) for our little contest: A low-risk investment with the ability to profit from organic growth if and when a recovery takes shape in 2012. And while things so far have looked good for the economy, La Monica is being a realist.
“… anyone holding onto the naïve hope that we are in for one of those V-shaped, hockey-stick or whatever other kind of shape recovery that involves GDP growing at — to quote Dark Helmet in Spaceballs — ‘ludicrous speed’ is deluding themselves.”
He still holds that the company is a bargain, and that the UPS‘s (NYSE:UPS) acquisition of European carrier TNT Express might actually be good for FedEx by helping boost the industry’s pricing power.
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