I would not write off the Republicans losing the House but if they do, then we’re in gridlock — and gridlock has actually been pretty good for the markets overall, suggests Mark Skousen, editor of Forecasts & Strategies. Here are excerpts from a panel discussion at the Las Vegas MoneyShow covering mid-term election stock picks.
RMR Group (RMR) is a Newton, Massachusetts, based business property owner. It has 1400 properties, hotels, senior living, retail outlets, and medical buildings, so even though they’re physical properties and stuff, there’s a lot going for them.
Return of equity of 49% when the industry is only 11%, profit margins of 26%, no debt. I have several recommendations with no debt and $126 million in cash, P/E ratio of 12, PEG ratio of 0.9. I’ve never seen anything that low as a PEG ratio so, anyway, I like RMR Group.
Another one I like is Teladoc (TDOC). Motley Fool said Teladoc will be one of three stocks to tell your children about so that’s one worth paying attention to. It’s really an online tele-medicine.
Think of it as a doctor in your pocket. That’s the way they like to play it on, online doctor visits, which is growing very rapidly, smartphone app that they use. They have 220 of the Fortune 1000 companies that now use their service. It has 7500 clients.
Revenues doubled in the last year. They are losing money so, usually, I like to recommend stocks that the companies are making money, but they will be making money soon. It’s not quite there, but almost.
Healthequity (HQY) is a Utah-based medical service firm, the number one provider of health savings accounts. It has 3.4 million accounts, profit margins of 21%, revenues up 29%, earnings up 45%. Again, no debt and $240 million in cash so Health Equity is really on fire and you should take a look at that.
Main Street Capital (MAIN) is a financial stock but it’s really, it’s a business development company. It’s best of the breed. Main Street Capital is unique. Of the 6000 and some stocks that trade, it is the only stock that pays a monthly dividend plus two special dividends every year, in July and at Christmas time, so it’s a great Christmas bonus type of stock.
The yield is still 7.5% even though it’s increased. It’s up 125% over the last five years that I’ve recommended it. Profit margin is 83%. It really is a tremendous, anybody who wants income on a monthly basis, there’s nothing like this rising dividend policy.
