Rollins and the Orkin Man

10/16/2015 8:00 am EST


Jimmy Mengel

Editor, Outsider Club

Cockroaches are among the most hated things on earth; that means that people will do just about whatever it takes—and pay whatever it costs—to rid their homes of them, asserts Jimmy Mengel, editor of Outsider Club.

When renters and homeowners were asked about the major problems they’ve had with their homes, the number one problem they cited was insects.

This has led to a billion-dollar pest control industry that is steady regardless of what the stock market and the economy are doing.

All told, $7.213 billion was billed out for pest control services in 2013 in the US alone. And we're not just talking about cockroaches.

Termites cause over $5 billion in damages annually and bedbugs have evolved from a rare nuisance to a worldwide epidemic.

So, which company kills the most bedbugs, termites, and cockroaches? Enter the Orkin Man, the biggest name in pest control.

Orkin is owned by parent company Rollins, Inc. (ROL), which provides pest and termite control services to residential and commercial customers, including hotels and food service establishments.

While it is huge in the US, it has also wielded its bug-killing magic in Canada, Central America, the Caribbean, the Middle East, Asia, the Mediterranean, Europe, Africa, and Mexico.

The stock has been completely immune to any market forces. It is up 369% in the past decade.

In 2008, when the S&P dropped 38%, Rollins hung tight and only dropped a meager 4%. It's gone on to 223.4% gains since then.

Rollins is well positioned to survive and prosper through our next market correction as well. It holds no debt and has well over $100 million in cash on hand.

Basically, the company keeps getting stronger and I expect that to continue.
This is a great stock to buy on dips and hold forever.

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