The best opportunities in the market right now involve international and/or commodity exposure.
My favorites that are less volatile that I think would be great are:
COP - ConocoPhillips - one of the largest oil/gas production andrefining companies in the U.S. The stock is trading at $78.50. Earnings are estimated at $10.55 for 2008 and $10.77 for 2009.
SBS - Companhia de Saneamento de Estado de Sao Paolo - This is thewater and waste treatment utility for Sao Paolo, Brazil. The company's earnings estimates keep rising thanks to growth abroadand the devaluation of the US dollar. The stock is trading around $46 with earnings for 2008 estimated at$5.82 and 2009 at $6.31. Very good value. I have a target price of $64 for the shares.
CPO - Corn Products International - US based corn processing company(no ethanol) makes corn syrup, food additives, and biodegradeableplastic as I mentioned to you a while back. The stock is trading at$37.55 with earnings estimates that are rising with 2008 projected at$2.82 and 2009 at $3.24. 40% of the company's revenue comes fromoutside of the U.S. I have a conservative target price of $45 for the shares.
TEF - Telefonica S.A. - $137 Billion telecommunications firm based in Madrid, Spain with services in Spain, Europe, and Latin America.Trades at $87.50 a share with 2008 estimates of $7.80 and 2009earnings of $9.08. This stock is down from its high of $103. Solid, dominant company. The shares may go lower if the rest of the worldslows with the U.S., but shares trade cheaper than either Verizon or AT&T relative to potential for growth.
UN - Unilever NV - $94 Billion consumer company based in theNetherlands. Owns brands including Ben and Jerry's, Breyer's,Klondike, Popsicle, Lipton, Hellman's mayo, Dove Soap, SlimFast andothers. They have been improving operations and are trading at only15x this year's estimated earnings which is great value for a large food company such as this one.
Sunday, April 13, 2008
General Electric blowup a surprise
General Electric (GE) disappointed Wall Street with its first earnings miss since 2003 on Friday.
Shares dropped 13% and the outlook was not positive. The stock is a good proxy for the U.S. economy given its diversified revenue in financial, healthcare, entertainment, and industrial businesses.
The stock is a good long-term hold given its diversified business and 3.4% dividend.
However the shares do not look like they will go back up to recent levels anytime soon.
The GE miss is a proxy for diversifying investments outside of the U.S. right now.
I have some recommendations in a follow-up post.
Shares dropped 13% and the outlook was not positive. The stock is a good proxy for the U.S. economy given its diversified revenue in financial, healthcare, entertainment, and industrial businesses.
The stock is a good long-term hold given its diversified business and 3.4% dividend.
However the shares do not look like they will go back up to recent levels anytime soon.
The GE miss is a proxy for diversifying investments outside of the U.S. right now.
I have some recommendations in a follow-up post.
Subscribe to:
Posts (Atom)