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Kaminsky's Call: Long-Term Air and Freight Carrier Stock Pick

Monday, 28 Jun 2010 | 9:57 AM ET

Every investor loves to find "one-decision stocks." For those unfamiliar with the term, these are stocks that you buy and don't think about selling for years. These opportunities do not come often, especially in today's uncertain markets.

My "Call-to-Action" today is to nominate Expeditors International of Washington, to the Strategy Session's inaugural "one-decision stock club." Think of this as one you could own for a long, long time, and here's why.

Management is superb. Since 1988, this air and freight carrier has been led by its dynamic founder, Peter Rose. And its balance sheet is clean; They have $1 billion on the books in cash with zero in debt.

And here's the best part; management is smarter than the competition. Unlike United ParcelService or FedEx, Expeditors isn't burdened by a whole slew of expensive hard assets, like aging plans and trucks. They effectively outsource that expense by renting out other fleets to transport its goods. This allows the company to better focus on servicing clients.

Even more interestingly, Expeditors doesn't kowtow to The Street and offer quarterly guidance. Management lets its monthly 8-K filings do the talking. They don't need the big banks of Wall Street to write research to bolster their stock price. They do that through results.

And the future looks even better. China, where the company has just begun to establish a foothold, could turbo-charge earnings in the years to come.

In times of uncertainty, the likelihood of finding "one-decision stocks" is rare, but consider Expeditors International of Washington one of them. You may find the biggest problem with owning it may be deciding when to sell.

Programming note: "The Strategy Session," hosted by David Faber and Gary Kaminsky, airs weekdays at Noon ET on CNBC.

DISCLOSURE:
Gary Kaminsky does not hold any equity positions.

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