Consumer Spending Growth in Emerging Asia offers Investment Opportunities

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The latest edition of Bloomberg Businessweek had an interesting article on the stock picking strategy followed by David Winters of the Wintergreen Fund(WGRNX). He focuses on companies that are poised to profit from the growing consumer spending in countries like India, China, Malaysia, Indonesia, etc.

The following foreign stocks are some of the holdings of this fund:

Coca Cola FEMSA (OTC: COCSF)
Pernod-Ricard SA
Nestle (OTC: NSRGY)
Genting Bhd
Genting Malaysia Bhd (OTC: GMALF)
Schindler Holding AG (OTC: SHLAF)
Anglo American PLC
Canadian Natural Resources Ltd (CNQ)
Japan Petroleum Exploration Co
Petrobank Energy and Resources Ltd
Swire Pacific (OTC: SWRBY)
Swatch AG
Compagnie Financiere Richemont
British American Tobacco (BTI)
Imperial Tobacco Group (OTC: ITYBY)
Japan Tobacco
Jardine Matheson Holdings Ltd
ABG Sundal Collier Holding ASA
Aruze Corp
Capstone Mining Corp
Birchcliff Energy Ltd
Witwatersrand Consolidated Gold Resources Ltd

Note: Holdings noted here as of June 30, 2009

New ADR Listing: Brazilian Railroad-based Logistics Operator

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ALL-America Latina Logistica S.A, the Brazil-based Latin America’s independent rail-based logistics operator, listed its ADR on the OTCQX market in Level 2 category with the ticker ALLAY.

From the press release:

“ALL is currently Latin America‘s largest independent rail-based logistics operator, offering a complete range of logistics services with domestic and international intermodal door-to-door transportation operations, local pick-up and delivery, port terminal services, dedicated fleet services and warehousing services, including inventory and distribution-center management. ALL owns and operates a large asset base, including a rail network that extends 21,300 kilometers of rail tracks, 1,095 locomotives, 31,650 rail cars, 650 highway vehicles, distribution centers and warehousing facilities.”

ALL’s shares were listed in the BOVESPA exchange in 2004. Since its listing, the shares have returned an average of 18% annually in local currency terms.

The Brazilian rail network is the seventh largest in the world but the current infrastructure is not enough to meet the demand for freight transportation.Hence ALL is well-positioned to profit from the demand for rail transportation in both Brazil and Argentina. ALL currently operates in Brazil, Argentina, Chile and Uruguay.

ALLAY has a very light daily trading volume and the stock closed at $8.97 yesterday.

For more information,  go to their corporate website here.

Knowledge is Power: Global Retirement Age Comparison, Dividend, Rails Edition

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Asia’s best managed companies: Malaysia and Thailand

Asia’s best managed companies: South Korea and Taiwan

3 Companies With Rising Returns on Equity

Singapore visitor arrivals 17.3% up on casino boost

TGV-Train-France

 

TGV Train, France

Riding the Rails

Dividend growth prospects favour U.S. banks over Canada

Portugal’s economy: The importance of not being Greece

Big, fat dividends

Retirement-Age-Comparison

Source: Economic Policy Institute

Americans work longer 

China’s ‘homes’ feel the squeeze

Knowledge is Power: Foreign Stock Picks, Greece, Germany Edition

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Border crossing: 14 foreign picks for your portfolio

– Article mentions Globe Telecom of Philippines paying a dividend yield of  about 8.50%.I mentioned this stock in my post How to invest in Philippines?

tropical_boracay_island_philippines.jpg

Boracay Island, Philippines

Six investing rules for a worst-case scenario

U.S. Stocks to Fall as Chronic Unemployment Reaches Record: Chart of Day

How Germany Made the Greek Crisis Worse

China Goes Bubble Popping

I’ll Tell You When Chinese Bubble Is About to Burst: Andy Xie

Why Greece could trigger another financial crisis

How to Invest in Philippines?

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Among the frontier markets, investors have often overlooked the Philippines. With a population of about 91 million and a stable manufacturing and service-based economy, the country offers several good investment options. Goldman Sachs included Philippines in its “Next Eleven” list of countries. This year the economy is projected to grow 3.6%.

Some of the reasons to invest in Philippines include:

  • Banking sector appears resilient
  • The capital adequacy ratio of banks exceed the minimum required
  • Economy is less dependent on exports than many other regional peers with exports-to-GDP ratio around 30%
  • Inflation is mild and is under the target range set by the Central Bank
  • Financial markets has rebounded due to strong overseas remittances, macroeconomic policies and renewed confidence
  • The current account remains a surplus
  • Many companies in the telecommunications, energy, property,banking and retail trade sector are owned by conglomerates
  • Many of its major trading partners are in fast-growing Asia

Source: IMF

According to a recent article, the banking and utility sector has interesting opportunities for investors.Currently there is no country-specific ETF for Philippines. However in February, iShares filed papers to launch a Philippines ETF. This ETF will be heavily concentrated in utilities, telecommunications and financials.

The Philippine Long Distance Telephone Company accounts for about one-fourth of the benchmark PSE Composite Index. Its ADR trades under the ticker PHI in the New York Stock Exchange. It has a dividend yield of 6.17%. The company is well-positioned in the industry and is expected to experience accelerated growth with its broadband service. Some of the largest companies such as Ayala (OTC: AYALY), Globe Telecom (GTMEY), Metropolitan Bank and Trust Company(OTC: MTPOY), etc. trade on the OTC markets. The complete list can be found here.