Four Leading International Stocks
Some folks follow the strategy of selecting stocks that outperform other stocks in the same industry. The idea here is to select the winners in a particular sector for a given time period.
The following are five such stocks that have outperformed the industry by over 50% year-to-date:
1.Telefonos de Mexico, S.A.B. de C.V (TMX) is a telecom service provider in Mexico and has 17.8 million local fixed lines. TMX pays a dividend of 3.37% and the total revenue is $10.2B. EPS has grown at an average annual rate of 16% over the past 5 years.
2.Taiwan-based Chunghwa Telecom Ltd (CHT) provides integrated communication services.The current yield is 1.07% and the P/E is 13.56. Earnings and revenue has almost been flat in the past 5 years.
3.Sociedad Quimica y Minera de Chile(SQM) is a fertilizer manufacturer in Chile.Annual dividend growth rate is 45% and the dividend yield now is 2.83%. After reaching nearly $60 in the past 52 weeks, SQM has fallen to $19.85 as of yesterday following the crash of the agricultural stocks.
4. The famous Japanese company Panasonic Corp(PC) makes an array of electronic and electrical products. While Sony(SNE) 47% in the last 52 weeks Panasonic is down just 15%.PC has a dividend yield of 2.49%. On Oct 1, 2008 the company changed its name from Matsushita Electric to Panasonic Corporation.
Three French ADR Stocks
Unlike Canada or Canada,there are not many French stocks listed in the US. Other than the iShares France ETF (EWQ) there are some French companies that trade in the
The following are three stocks worth looking into:
1.CGV Veritas(CGV) provides technical services to oil and gas companies or exploration.Year-to-Date the stock is down nearly 62%.CGV ‘s market cap is $2.5B.
2.AXA(AXA) operates in the nonlife insurance sector.AXA has a dividend yield of 8.13% and the P/E is 6.7 5.AXA is aggressively expanding in emerging markets like India,China,etc.
3.Sanofi-Aventis (SNY) is a France-based Pharma&Biotech; company.Year-to-Date
SNY is down 37%.SNY has a 6.17% yield and the P/E is 10.4 .It is the maker of Ambien, the insomnia prescription drug.
Global Dividend Paying Stocks Under $10
After last week’s stock market crash worldwide some investors are trying to bottom feed on some of the battered stocks. There are plenty of stocks with great dividend yields.Some of the stocks have fallen so much that they now trade for under $10.
The following is a list of foreign bank stocks under $10 that trade on the US exchanges. These stocks have excellent yields but investors must remember that dividends can be suspended or cut anytime.With that in mind, you may want to review these stocks if you are trying to pick up some great value plays now.
Five Foreign Bank Stocks under $10 (as of Oct 12,2008) :
1. Banco Bradesco(BBD) , one of the large private sector banks in Brazil now trades for $9.69. Dividend Yield is 3.17% and the stock is down over 53% in the past 52 weeks. When the commodity markets recover, BBD will rebound.
2. National Bank of Greece (NBG) pays a dividend of 1.91% and the P/E is 9.22.
3. The OTC traded Swedbank AB (SWDBY) is a banking company in Sweden. SWDBY closed at $8.90 last Friday and has n yield of 16.90%.
4.BBVA Banco Frances SA(BFR) is an Argentina based bank. Currently it pays a juicy 9.70% yield and the P/E is 6.29. It is a small bank with a market cap of just over $500M.
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5.Denmark-based Danske Bank A/S (DNSKY) closed at $7.70 on Friday. DNSKY has a dividend yield of 11.34% and is one of Denmark’s well known banks.
The Best and Worst of Foreign Bank Stocks
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Last week was one of the worst weeks for many of the world’s stock market indices. The UK’s FTSE 100 was down a massive 26% from the previous week. France’s CAC and Germany’s DAX also plunged over 20% for the week. The Nikkei Index of Japan lost 24%.
Here in the US, the Dow plummeted 18% for the week, the worst in its history.The S&P 500 Index also declined 18% for the week.Financial stocks were some of the worst performers last week. In the US, the S&P Financials Index is down a horrendous 49.70% year-to-date.
Given the above events, I wanted to check which foreign bank stocks were the best and worst performing year-to-date. Back in September, I wrote an article titled “By How Much Have Foreign Bank Stocks Fallen?” which showed how much foreign bank stocks had fallen after the recent high reached in October,2007. At that time, HBOS plc (HBOOY) of UK was the loser with a -71.76% return and the two stocks that were down less than 10% were First Bancorp (FBP) of Puerto Rico and Hang Seng Bank (HSNGY) of Hong Kong.
Now lets take a look at the five best and worst performing banks year-to-date.This list does not take into account dividends paid during this time period.
The Five Best Foreign Bank Stocks(as of Oct 10,2008):
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The Five Worst Foreign Bank Stocks (as of Oct 10,2008):
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The data in the above list was developed based on the NYSE traded stocks only.If OTC stocks were included, HBOOY is the worst stock since it is down 87.3% so far this year.But it should be noted that HBOOY is being acquired by Llyods Bank (LYG). So HBOOY will trade after the merger is over.
Analysis:
1. It is interesting to see HBC of UK being the best stock in the above list.HBC might be the best British bank to add to one’s portfolio at these levels.
2. Japanese banks are holding up well compared to their European and American peers.
3. RBS is the worst performer in the list. Last week alone the stock collapsed a whopping 61% in London trading.
4. ICICI Bank (IBN), the largest private sector bank in India is fighting to restore investor confidence there. Last week it fell 20% in trading in India. To allay depositor fears, the bank sent text messages to customers’ cellphones today saying “the bank is well capitalised with good liquidity. Please do not listen to baseless rumours”. So it is not surpisring to see IBN ADR down nearly 78%.
Disclosure: Long LYG, RBS, BMA