Best of the Week
Most Popular
1.Election Forecast 2015 - Opinion Polls Trending Towards Conservative Outright Win - Nadeem_Walayat
2.UK Solar Eclipse - End Time Sign, Judgement Day, Doomsday! - Nadeem_Walayat
3.Gold And Silver - When Will Precious Metals Rally? Not In 2015 - Michael_Noonan
4.Preparing for the Next Stocks Bear Market - Forecast 2015-2016 - Gary_Savage
5.Is a Stock Market Crash Imminent? - David Eifrig
6.Gold Price Slumps as US Dollar Soars, What's Next? - Nadeem_Walayat
7.US Dollar Forex Pairs and Gold Chartology - Rambus_Chartology
8.Election Forecast 2015: The Day Labour Lost the General Election - Nadeem_Walayat
9.The ECB Should End QE Next Month - EconMatters
10.Silver Price Poised to Surge - Zeal_LLC
Last 5 days
Deflation Watch: Key U.S. Economic Measures Turn South - 27th Mar 15
The Hard-Earned Truth About Recreational Real Estate - 27th Mar 15
Bitcoin Price Still in Important Territory - 27th Mar 15
Stocks Bear Market Conditions - Index Market Range Warning - 27th Mar 15
BEA Leaves Q4 2014 U.S. GDP Growth Essentially Unchanged at 2.22% - 27th Mar 15
Brazil Economy Victim of Vulgar Keynesianism - 27th Mar 15
Gold to Fuel Silver Price Upleg - 27th Mar 15
Gold and Silver Stocks Will Rise Again! - 27th Mar 15
Risk of ‘World War’ between NATO and Russia on Ukraine as Yemen Bombed - 27th Mar 15
FOMC Minutes Turned The Gold Tide - 27th Mar 15
Sheffield Hallam Election Battle 2015 - Lib Dems Go to War Whilst Labour Sleeps - 27th Mar 15
Gold Effect On Mining & Shale Wasteland - 27th Mar 15
How Stock Investors Should Play the 2016 Presidential Race - 26th Mar 15
MidEast Energy Alert: Why the Crisis in Yemen Could Get Ugly Very Fast - 26th Mar 15
Stock Market Downward Spiral of Dumbness - 26th Mar 15
The Monetary Approach Reigns Supreme - 26th Mar 15
Stock Market Large Gap Down, Despite the Algos' Push Back - 26th Mar 15
Crude Oil Surges, Gold price Spikes as Middle East Tensions Escalate - 26th Mar 15
The U.S. Housing Market Recovery Is Fabricated Optimism - 26th Mar 15
Why Yemen Is The Next Saudi-Iranian Battleground - 26th Mar 15
The Crude Oil Price Crash and China Economic Slow Down - 26th Mar 15
Global Financial Markets Are More Distorted Than Ever Before - 26th Mar 15
One More Stock Market Rally and Then a Huge Drop Expected - 26th Mar 15
Danger Will Robinson - Stock Market Crash Warning - 25th Mar 15
Learn the Basics of Corrective Elliott Waves - 25th Mar 15
Why CNBC Is Hazardous to Your Financial Health! - 25th Mar 15
Will Your Retirement Accounts Survive The Coming Tax Code "Revolution"? - 25th Mar 15
US Dollar - Americas Phoenix - 25th Mar 15
California’s Epic Drought: Only One Year of Water Left! - 25th Mar 15
What’s Wrong With Silver? - 25th Mar 15
SPX Futures Appear Weak. WTIC and Gold May Be at Max Retracement - 25th Mar 15
We’re at the Dawn of a “New Energy Age” - 25th Mar 15
A Very Weak U.S. Economic Recovery - 25th Mar 15
Zero UK CPI Inflation Rate Prompts Deflation Danger Propaganda For Fresh Money Printing - 25th Mar 15
Stock Market NYSE Hi-Lo Index Aggressive Sell Signal - 24th Mar 15
Palladium Commodity Price Forecast - 24th Mar 15
Bitcoin Price Gearing Up for a Fall - 24th Mar 15
Safety Deposit Boxes In UK Being Closed By ‏HSBC – Not Closing Gold Vaults - 24th Mar 15
Japan Short Term Gains And Long Term Disaster - 24th Mar 15
China's Fragile Evolution - 24th Mar 15
David Cameron Announces Resignation Even Before Being Re-elected, Handing Labour 6 Seats - 24th Mar 15
City of London's Ownership of American Colonies - 24th Mar 15
Stock Market Reversal May Have Begun - 24th Mar 15
Casey Gathers Top Gold Experts to Share Secrets for Making Money in Any Market - 24th Mar 15
Thoughts on The Current Crude Oil Market - 24th Mar 15
U.S. Economy Still on Life Support - What Your Governments Hiding From You... - 24th Mar 15
UK Election Forecast 2015 - Budget Bribes Fail, SNP Insurgency Catastrophe - Video - 24th Mar 15
Is Stock Market Minor Top Taking Hold? - 23rd Mar 15
Greece and EU Running Out of Time as Bank Runs Intensify - 23rd Mar 15
Stock Market Slightly Negative Expectations Following Last Week's Rally - 23rd Mar 15
This Rising Interest Rates Play Could Make You a Quick 55% - 23rd Mar 15
Platinum Commodity Price False Break Low - 23rd Mar 15
The Real Reason The American Dream is Unraveling - 23rd Mar 15
Election Forecast 2015 - Budget Bribes Fail to Impress Voters, Tory's Lose Seats in Opinion Polls - 23rd Mar 15
Silver Price Reliance During U.S. Dollar Rally - 23rd Mar 15
Gold Price Outlook Dramatic Improvement Following US Dollar Topping Action - 23rd Mar 15
Wall Street Doesn't Want You to Do This - 22nd Mar 15
The "Natural Interest Rate" Is Always Positive and Cannot Be Negative - 22nd Mar 15
Exploring The Gold Market: The Fed, The Charts. The COTS and GLD - 22nd Mar 15
Stocks Bull Market Continues - 22nd Mar 15
Gold And Silver - China's AIIB Spells U.s. Dollar Demise, Not Clear For Precious Metals - 22nd Mar 15
Cocoa Commodity Price Technical Outlook - 21st Mar 15
Yield Curve, Futures, Suggest No U.S. Interest Rate Hike Until December - 21st Mar 15
Three Iconic Stocks Are Poised for a Dive - 21st Mar 15
We're All Hedge Funds Now! - 21st Mar 15
Why Stock Market Seasonality May Be Critical in 2015 - 20th Mar 15
Yellen's Tiger Riding Dilemma Keeps Interest Rates Near Zero - 20th Mar 15
FOMC is boxed in, Gold and Silver - 20th Mar 15
Silver Price Poised to Surge - 20th Mar 15
Why Aren’t These Investors Worried About The Gold Price? - 20th Mar 15
Gold Price Downside $850/oz; Upside Jump to $2,000/oz on ‘Grexit’ - 20th Mar 15
Cheap Paper Money - Precious Metals Technical Outlook - 20th Mar 15
Best Cash ISA vs Budget 2015 Scrapping Tax on Savings Interest on First £1,000 - 20th Mar 15
GDXJ / Gold Ratio - 20th Mar 15
What the “Yellen Effect” Ultimately Means for Crude Oil - 20th Mar 15
Sharp Fall In USD Index And Its Implications - 20th Mar 15

Free Instant Analysis

Free Instant Technical Analysis


Market Oracle FREE Newsletter

US Economy Still on Life Support

Investing in the World’s Most Unstoppable Trend

Companies / Sector Analysis Feb 17, 2013 - 05:45 PM GMT

By: Investment_U

Companies

Matthew Carr writes: There is an industry that’s outperformed nearly any you could imagine.

Gold… Left in the dust.

Oil… Not even close.

Natural gas… Nope.

Silver… Yup, beat that too.


Healthcare… Indeed.

It’s an industry we’ll all eventually need, every person on this planet.

Face it:

You are going to die.

Even worse, everyone you love – your friends and family – are going to die too.

It may be by natural causes. It may be by a natural disaster. It may be by something tragic – a drunk driver, a random act of violence or a horrible accident.

Whatever the case may be, it’s inevitable. Life is momentary. Death is infinite.

In the United States, on average, 2.5 million people die each year. But this is about to pick up as the Baby Boomers say their last farewells. And by 2040, the number of people dying each year in the United States will practically double from the level it’s at now.

Death is a commodity. It even has its own seasonal uptick as the storm and flu seasons run amok across the United States. And it’s a business – one that has a constant market. A market that is constantly growing.

Despite appearances, the vast majority of funerals – or celebrations of life, as they’re now called – in this country aren’t handled by small, little family-owned and -operated businesses. They’re handled by large, publicly traded companies.

And shareholders are reaping exceptional rewards.

My Funeral Services Index, made up of the four largest funeral services and cemetery operators in the country, has obliterated the performance of almost any other industry.

During the last 13 months – since January 2012 – this index is up 64.30%, including dividends.

Over the last five years, the return is an astronomical 307.32%!

The only thing that can come close is the performance of silver. The iShares Silver Trust (NYSE: SLV) is up 170.82% since 2009.

So, let’s meet the companies in my Funeral Services Index

#1.Carriage Services (NYSE: CSV)

Over the last 13 months, the return on Carriage Services is 155.73%, including dividends. Since January 2009, the gain is a funeral services industry best of 625.12%.

Carriage Services operates in two segments – Funeral Home Operations and Cemetery Operations.

CSV is in the micro-cap range, with a market cap of $260.4 million. But revenue for CSV has steadily been ticking higher. Since 2009, annual sales have increased from $177.6 million to $204.3 million in 2012. During that span, earnings per share increased from $0.40 in 2009 to $0.84 in 2012.

#2. Stewart Enterprises Inc. (Nasdaq: STEI)

STEI is a little larger than CSV, with a market cap of $662.5 million. Over the last year, the return on Stewart Enterprises is a respectable 40.05%, including dividends. Since January 2009, the gain is 186.75%.

The company owns 217 funeral homes and 140 cemeteries in the United States and Puerto Rico.

Revenue, like CSV’s, is steadily ticking higher over the last several years, rising from $499 million in 2009 to $527.9 million in 2012. It also increased its dividend 50% in 2012.

#3. Stonemor Partners LP (NYSE: STON)

The $1 billion market cap Stonemor hasn’t had as great of a run as CSV during the last year. But because of its hefty dividend, the return is 20.66%. And over the last five years, that dividend has helped bolster the return to 199.27%.

Stonemor is a much larger funeral services conglomerate – the second largest in the country – owning and operating 274 cemeteries and 69 funeral homes in the United States and Puerto Rico.

But the company offers an enticing 9.4% dividend yield.

The company’s revenue since 2009 is seeing one of the higher growth rates, increasing from $181.2 million to $245.6 million in 2012, with its dividend rising from $2.22 per share in 2009 to $2.36 per share in 2012.

In the first nine months of 2012, funeral home revenue increased 24.6%, while pre-need cemetery contracts increased 10.7%.

#4. Service Corporation International (NYSE: SCI)

The largest of the funeral service operators, with a market cap of $3.2 billion. Like CSV, it operates in two segments – Funeral and Cemetery Operations – owning 1,432 funeral service locations and 374 cemeteries in the United States.

Over the last year, the return on SCI is a decent 40.75%, including dividends. And shares are just off their 52-week high.

Since January 2009, the return on Service Corp. is – like the rest of the Funeral Services Index members – an eye-opening 218.11%.

Being considerably larger than its competitors, SCI’s revenue isn’t increasing as rapidly. But as with the rest of the industry, it’s seeing steady growth. In 2009, sales for SCI were $2.1 billion, and rose in 2012 to $2.4 billion.

The company also increased its dividend 50%, from $0.16 per share annually in 2010, to $0.24 per share in 2012.

We can’t escape it. Death is eventually going to get us all. At least until we find a cure for it or there’s a real-life outbreak like in The Walking Dead. The funeral services industry is consumer-driven, just like any other service sector.

So, you can embrace it and profit from it. Or choose to pretend it’s not a reality…

Good investing,

Matthew

Editor’s Note: Matthew Carr’s “Doomsday Preppers’ Portfolio,” originally published in Investment U last August, has returned 27.84% to date.

Source : http://www.investmentu.com/2013/February/the-worlds-most-unstoppable-trend.html

by , Investment U Research

http://www.investmentu.com

Copyright © 1999 - 2013 by The Oxford Club, L.L.C All Rights Reserved. Protected by copyright laws of the United States and international treaties. Any reproduction, copying, or redistribution (electronic or otherwise, including on the world wide web), of content from this website, in whole or in part, is strictly prohibited without the express written permission of Investment U, Attn: Member Services , 105 West Monument Street, Baltimore, MD 21201 Email: CustomerService@InvestmentU.com

Disclaimer: Investment U Disclaimer: Nothing published by Investment U should be considered personalized investment advice. Although our employees may answer your general customer service questions, they are not licensed under securities laws to address your particular investment situation. No communication by our employees to you should be deemed as personalized investment advice. We expressly forbid our writers from having a financial interest in any security recommended to our readers. All of our employees and agents must wait 24 hours after on-line publication or 72 hours after the mailing of printed-only publication prior to following an initial recommendation. Any investments recommended by Investment U should be made only after consulting with your investment advisor and only after reviewing the prospectus or financial statements of the company.

Investment U Archive

© 2005-2015 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

Free Report - Financial Markets 2014