Kaminsky's Call: Investors Might 'Clean Up' on This Stock
Morgan Stanley, Vice Chairman
Last week, we introduced the notion of “one-decision stocks,” those infrequent investments where one can actually "buy and hold" for years without thinking of selling.
Expeditors International of Washington was the inaugural member, and today, I have another.
My "Call-to-Action" is to buy Ecolab. The second member of The Strategy Session’s “one-decision stock club" should be a winner, and here’s why.
Ecolab makes hand sanitizers, a most peculiar secular growth story that only seems to grow with each report of Mad Cow, Swine Flu or some other exotic disease that only seems to affect animals in Southeast Asia but somehow has everyone on the Upper West Side of New York City freaked out—hence the need to wash your hands.
While these phobias may fatten shrinks' bottom lines, it can also help shareholders profit too. There are also new products in the pipeline.
Just a few days ago, Ecolab launched Virasept, its first ready-to-use hard surface disinfectant. They are also developing with DuPont a coating for food processors that will reduce the risk of contamination.
And while Ecolab may traffic in sanitizers that use artificial ingredients, it has only just begun to tap its real organic growth potential in markets like China, India, and Africa. If Ecolab can catch on there, the stock should soar.
Membership in The Strategy Session’s “one-decision stock club” is a particularly exclusive affair in these markets. But Ecolab's long-term and short-term trends look great. This is one you can hold for years.
"The Strategy Session," hosted by David Faber and Gary Kaminsky, airs weekdays at Noon ET on CNBC.
Gary Kaminsky does not hold any equity positions.
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