Ten Foreign Stocks by Largest Market Capitalization

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I ran the stock screener for foreign stocks traded in the NYSE with the following conditions:

Market Cap = $100B+

Dividend Yield = 3% or more

The search resulted in the following 10 ADRs:

1. Royal Dutch Shell plc ( RDS.A)

2. China Mobile Ltd. (CHL)

3. BP plc (BP)

4. TOTAL S.A. (TOT)

5. Telefonica S.A. (TEF)

6. Banco Santander, S.A. (STD)

7. Vodafone Group Plc (VOD)

8. Novartis AG (NVS)

9. GlaxoSmithKline plc (GSK)

10. Sanofi-Aventis SA (SNY)

Oil giants Royal Dutch Shell plc ( RDS.A), BP plc (BP) and TOTAL S.A. (TOT) have diversified global operations. With the price oil rising near $80, this sector is getting the attention of investors. Yesterday BP reported strong earnings. Total and Shell may follow suit as well.

Telecom providers China Mobile Ltd. (CHL), Telefonica S.A. (TEF) and Vodafone Group Plc (VOD) all have excellent franshises. For example, UK-based Vodafone has established its brand in many emerging markets and continues to increase subscribers.

Spanish bank Banco Santander, S.A. (STD) is the lone bank in the above list. Despite sluggish domestic housing market, Santander is well positioned for growth due its huge presence in overseas markets such as Latin America.

Drug majors Novartis AG (NVS), GlaxoSmithKline plc (GSK) and Sanofi-Aventis SA (SNY) manufacture many preventive vaccines, medicines and consumer health-care products. These drug makers have diversified businesses and their stocks are good picks for all market conditions. Last year all three had revenues exceeding $40B. GlaxoSmithKline plc is especially well known in developing countries. Some of the top brands of GlaxoSmithKline include Ribena, Horlicks, Aquafresh, Panadol and Tums. GSK website states “Every minute…more than 1,100 prescriptions are written for GSK products.”

SITE OUTAGE !!!

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Hello Visitors

My site www.topforeignstocks.com has been hit with a malware problem today. Because of this Google Search Engine has marked all pages as “This site may harm your computer” warning.

I am working hard with my ISP to get this issue fixed asap. Should be cleaned up by tomorrow and regular posting will resume tomorrow as well.

Meanwhile we are working on adding more content to this site. You can also checkout my other sites at:

http://www.globaleconstats.com

http://adruniverse.blogspot.com 

Thanks for your understanding & patience !!!!!!

-David

Will Emerging Markets Continue to Outperform Developed Markets?

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Emerging markets have strongly outperformed developed markets this year. The equity market indices of countries like China, India, Brazil, etc. are up significantly over markets in Europe, Japan and North America. Over the last 10 years, the US and Japanese equity markets were essentially flat to down. Emerging market indices have grown many times in the same period.

An IMF study in published in the World Economic Outlook, September 2003 mentioned that the GDP per capita of a country is positively correlated to the change in the size of the working ppopulation. Based on this theory, developed countries  are projected to have lower growth which in turn will lead to lower equity returns. One of the reasons for the low growth in developed countries is that the ratio of dependents will rise dramatically in the coming years due to declining population growth and increasing life expectancy, In the US, the era of strong participation in the workforce by the baby boomers is over. While in Europe population decline is an issue, in the U.S. the decline will not be big due problem to immigration and high fertility rates. Unlike the developed world, labor force in emerging countries are growing. By 2050 India, China and Brazil are projected to have the largest working population in the world.

In the U.S. as baby boomers retire they would liquidate their stocks, bonds and other assets leading to a fall in prices. In emerging markets the working population is expected to increase higher than the general population growth. With high savings rates, prudent investment policies,  emerging market equities may easily beat developed market equities in the future also.

The U6 unemployment rate is over 16% in the USA. Millions of unemployed workers are unable to find well-paying jobs. Compared to this, emerging markets like India are attracting large foreign direct investments  as per a research report by Morgan Stanley, This is leading to more job opportunities in many sectors. In addition to manufacturing, many emerging countries are developing their knowledge-based sectors such as bio-technology, drug industry, mathematical analytical systems, etc. All these activities will help emerging markets beat developed markets over the next decade and beyond.

Related ETFs:

The iShares MSCI Emerging Markets Index Fund (EEM)

The iShares FTSE/Xinhua China 25 Index Fund  (FXI)

The iShares Brazil Index Fund  (EWZ)

Twelve European ADRs up more than 100% YTD

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The following Twelve European ADRs are up more than 100% Year-To-Date as of October 23, 2009:

Company: Mechsteel Steel (MTL)
Country: Russia
YTD Change: 412%

Company: Aixtron (AIXG)
Country: Germany
YTD Change: 354%

Company: Gentium (GENT)
Country: Italy
YTD Change: 315%

Company: Wimm-Bill-Dunn Foods (WBD)
Country: Russia
YTD Change: 192%

Company: Evotec (EVTC)
Country: Germany
YTD Change: 178%

Company: Vimpel Communications (VIP)
Country: Russia
YTD Change: 177%

Company: Eda (EDAP)
Country: France
YTD Change: 151%

Company: Acergy (ACGY)
Country: Norway
YTD Change: 142%

Company: ASML International (ASML)
Country: The Netherlands
YTD Change: 139%

Company: Flamel Technologies (FLML)
Country: France
YTD Change: 132%

Company: Alacatel-Lucent (ALU)
Country: France
YTD Change: 112%

Company: National bank of Greece (NBG)
Country:Greece
YTD Change: 105%