Ever heard of ConvaTec (CTEC) or Smurfit Kappa (SKG)? Probably not. What about DCC (DCC) or Mediclinic (MDC)? They are all members of the FTSE 100, an index of the biggest companies on the UK stock market.
Only seasoned investors are likely to be familiar with these names, despite them belonging to the most prestige part of the market.
Casual investors would be wrong to presume the FTSE 100 is full of household names.
The index is populated by a diverse range of names across many different sectors, many of whom help to supply essential goods and services, but not necessarily ones you’d buy off the shelf in the supermarket or from high street shops.
The newest entrant to the FTSE 100 is wound care technology company ConvaTec which only joined the UK stock market in October 2016.
Reading-based ConvaTec was founded in 1978 and employs around 9,000 staff across more than 100 countries.
It makes medical products, such as specialist wound care dressings, colostomy bags, catheters and skin care ware.
The company has emerged as one of the dominant suppliers in each of its specialist markets; number two and three respectively in the US and EU for Advanced Would Care and Stoma/Ostomy care products, the descriptive term for colostomy and related conditions.
It is operating in a growing market driven by ageing populations which are increasingly suffering from prolonged chronic health problems. In many cases, patients that begin using its products then do so for life, creating what should be high levels of recurring revenue.
Read this article for more information on ConvaTec and its investment case.
ONLINE SHOPPING BOOM
Smurfit Kappa has been around on the UK stock market for a long time but only recently qualified for inclusion in the FTSE index series after making a technical change to its listing.
You may not have heard of the company, but there is a high chance you will have come into contact with its products.
Most of us race to open packages when they arrive in the post, eager to access the contents of a box. More fastidious individuals may have noticed the name ‘Smurfit Kappa’ on many of the boxes in which your orders are shipped.
The company is a world leader in paper packaging; making and selling everything from standard mailing boxes to corrugated envelopes and heat shrink packaging.
MOVING GOODS AROUND THE WORLD
DCC is another company which plays an important role in the transportation of goods. It is a distributor of energy products including oil and liquid petroleum gas; as well as products in the technology and healthcare sectors.
We calculate that £5,000 invested 10 years ago with all dividends reinvested would now be worth an astonishing £23,308.
DCC is one of Shares’ top stock tips for 2017 – as we explain in more detail in this article.
HEALTHY AND WEALTHY
Mediclinic joined the FTSE 100 in March 2016. It is a private hospital group with operations in South Africa, Namibia, Switzerland and the United Arab Emirates.
It was formed from the merger of Al Noor Hospitals and Mediclinic. The enlarged group also holds a 29.9% stake in London-listed Spire Healthcare (SPI).