Does being on the road full-time affect investment programs? This full-timer thinks it actually helps manage an effective program. Many retirees are back in the stock market because blue chip stock dividends are more attractive than CD interest rates. That is particularly true when earnings of these companies assure that the dividends will continue. If you manage your own program, you already know that your broker is only a phone call away using a toll free 800 number.

Where does the full-timer advantage come in? It is my opinion that the full-timer has a broader perspective of national business operations. As we travel we observe some consistencies in retail operations and manufactured products, both good and bad.

These observations, along with other information, help in our stock selections. We also gain insight into regional opportunities as we travel. There are many outstanding companies that operate only in a two or three state area, often overlooked by investors in other parts of the country. 

Any conservative investor will look for at least three things in a company: good management, return on investment (dividends), and earnings in comparison to the price of the stock (price/earnings ratio). After all, dividends cannot continue long if the company does not earn enough to pay them.

One example of the full-timer edge: In the course of our travels, we must have visited a hundred malls. Often times we passed through a J.C. Penney store on our way into the mall. Last year, Barb seemed to be always stopping in the women's section as something would catch her eye. Now wait a minute. Penney's for women's clothes? Everyone knows it's only a place to shop for kids clothes and linens. Not anymore. Progressive management has revamped the total operation with excellent name brands and stylish offerings. The changes have been dramatic, not only in the stores, but in earnings. This, in spite of a recession. Since we observed many Penney stores, we were quicker to notice the new trend. A November 1992 purchase at $50 a share has grown to $76 a share in less than a year for a gain of 52 percent. There are other examples of the full-timer edge, and we have several more that we will share later. Perhaps other full-timers reading this article will reinforce our theory with examples of their own. We would love to hear from you.

Editors Note: Penny's split two for one on May 1, 1993.

From The March 1993 Issue of Movin' On

For several months now I have been making the point that full-timers have an edge in selecting stock investments because they can recognize national marketing trends and regional booming areas as they travel. To illustrate, I mentioned several of our selections, but would like to emphasize that I do not recommend stocks. You are in a better situation to do that according to your needs and knowledge.

You may remember Peter Lynch, the genius who ran the giant Magellan mutual fund from 1977 to 1990 averaging investment gains of more than 30 percent a year. In his new book, Beating the Street, he agrees that you know more about investing than the pros. He says, "people should combine simple financial analysis with everyday knowledge...drawn from their
shopping, jobs and hobbies." We could add full-time traveling to that.

Like other full-timers, I knew that Cummings Engine just had to go up when I noticed that all the new motorhomes and many pickup trucks were switching to Cummings and raving about performance. Too bad we were fully invested because that's exactly what happened.

Speaking of investments, some of our readers have unique strategies of their own. Robin Jenkinson of Bourg De Visa, France, sent me literature on South African bonds trading on the Johannesburg Stock Exchange with high yields that translate into higher profits because of currency discounts. Wow! Robin, this old accountant thought that Ford Motor was risky. On the conservative side, reader Don Laun of Modesto, California, has had success with utilities and uses their monthly dividends to supplement his retirement income. He mentions American Electric Power, San Diego Gas & Electric, and Puget Power as utilities that have been good investments for him. The full-timer advantage can be used in picking utility stocks too. We
couldn't help but notice that the Las Vegas area was booming and not because of gambling, but other industry. The obvious beneficiary of this growth would be Nevada Power (nine percent yield). Sure enough, it has risen 20 percent in the last six months. Maybe the brokerage firms should start hiring full-timers.