I suppose I should have the mindset of “the silver lining” in the economy, but for some reason I’m surprised their stock hasn’t been exploited in some way that would render them susceptible to the fluctuations requiring hiring and firing of employees to keep liquid. An odd thing that takes place in public businesses, is that when they are perceived to be weak financially, they can simply terminate jobs to a break-even point. How this makes a company more attractive is beyond me since it takes job growth to adequately reflect a growing company. Not just profits, which can be an element of efficiency, are required for growth. I read somewhere many years ago, that a business should create at least one job per year to be successful. I don’t recall the period precisely, perhaps it was a quarter.
Christopher Tkaczyk writes for CNNMoney.com; “Meet 9 of this year’s Best Companies that, as of mid-January, have never had a layoff.” It struck me as funny that the bar is set at Mid-January for an initial report of layoff free businesses.
For the record, Nugget Markets, Tkaczyk has a typo, is not publicly traded so is insulated from outside influence other than an ailing economy and as long as they are smart, can survive and even grow on the miniscule margins of grocers, they don’t have expenditures and massive payrolls like some companies, just a lot of floor space. Energy (Devon Energy) and Insurance (Aflac) companies also are insulated as they are receivers of revenue more than spenders. Something the US economy should do across the board. QuikTrip is Private as well, again, insulated other than macroeconomic issues. The Container Store is also private. NuStar Energy is an energy company obviously, and as long as they are conservative, you’ll get revenue positions greater than expenditures, but lack of risk means lack of more dramatic growth. It really only matters if you are risk averse or not. Stew Leonard’s is private, and a grocer, like Nugget Markets, their margin is tiny and they sell on margin. They have a greater chance of being acquired as long as they survive long enough. They’ve been around since the 20′s in some form though, so I doubt they are looking to be acquired. Scottrade is a privately held online brokerage which will undoubtedly feel the pinch of the retracting market unless they become the intermediary for industries doing business and not individuals. Since it was started privately, I can imagine it is well positioned. This is probably the only one in the list that I think is the true standout. And finally, Publix Super Markets, is another grocer that is private, immune to the swings of stock prices and investor pressure other than those who are part of the private partnership.
I see lists like this periodically, like self-made-millionaires, which integrate a desire to see the silver lining and hope. Unfortunately, they are not necessarily correct. The self-made-millionaire lists I have seen reflect people from the 1800′s, early 1900′s, and familial money.
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