5 Reasons This Low-Drama Gas Stock Keeps Beating the Market
Multinational chemical company Linde (NYSE: LIN) has a lot to offer patient investors. In this clip from "Editorial" from Motley Fool Live, recorded on Jan. 18, Motley Fool contributor Lou Whiteman lists the reasons he's bullish on the stock, as well as a few things to watch out for, and what kind of role this stock could play in your portfolio.
Lou Whiteman: We're going to talk about a company Linde as they say over there, but this is a company I just put it out there. This is a gas company, chemicals, energy, food, beverages, electronics, healthcare manufacturing metals. All of these industrial gases that go into so many things, from healthcare to a lot of industrial processes. This is one of the big three around the globe that is bringing that to us, they've got a 30% global market share thanks to their massive acquisition of Praxair back in 2018. Air Products and [Air Liquide], a French company, are the other two. These three companies combined to about 80% of this market. What do we like about this business? This is a reoccurring revenue, almost to the point of being utility. They sign with big customers 10- to 20-year take-or-pay supply contracts. We'll talk about that in a second. For the customer locks in rates, and for the provider, it is a massive amount of stability.
Source Fool.com
