A contrarian investment
While the markets are worried about job losses and government data, I’m looking at a cheap investment in future job growth in Monster.com. The stock is well off its $60 high just a couple years ago, and I expect that better numbers could send it back to the top.
Monster Worldwide is most known for Monster.com, its job search portal. It generates revenue by selling advertising space to businesses looking to hire. The site benefits from a large online community that is very active in searching for jobs. High demand jobs in the finance and healthcare industries are paying off for Monster in the form of higher advertising costs and demand for ad placement.
In many places around the US it is almost impossible to find an unemployed medical worker. High demand jobs like these force companies to pay huge sign on bonuses to applicants and ever-increasing ad costs to Monster.com for finding skilled labor. Monster benefits largely from businesses that are looking for skilled labor rather than the typical high school student. Skilled jobs will always be in demand regardless of economic downturn so Monster’s future looks bright.
The stock is off its highs of $60 two years ago and $70 during the tech boom to sit at just $24 to share. At this price, Monster looks like an absolute bargain. Contrarian play of the year.
