Some of my favorite articles for this week from ETF Trends:
1.Mexico and Its ETF Has One Caliente Decade
2.State Financials Look Dismal; Perhaps State ETFs May Want to Hold Off
3. PowerShares Registers for Frontier Countries ETF
4. Renewed Cooperation Between Singapore and Malaysia Can Help ETFs
Check them out.
Cheers!.
Sometimes it is easier to just invest in ADRs that are the most traded. Usually stocks with high trading volumes tend to be either liked/disliked by many market participants. Highly liquid ADR stocks tend to be usually large caps and hold leadership positions in their sectors.
The following list shows the top five Latin American ADR stocks by volume. Petrobras (PBR) of Brazil is the most traded ADR in the US.No wonder PBR is in this list.
[TABLE=34]
Note: Volume is defined as 200-Day Average Volume as of April 24,2008.
[tags]adr,latin,brazil,bbd,rio[/tags]
ABB Ltd, the Switzerland based global infrastructure company, is set to report 2008 Q1 Earnings on April 24, 2008 (Thursday).
Back in February, the company announced great earnings with strong order numbers for full year 2007 and 2007 Q4. From the corporate site: “2007 was a great year for ABB,” said Michel Demaré, ABB’s interim Chief Executive Officer and its Chief Financial Officer. “Demand remained strong around the globe for the products and services at the heart of our business – to increase energy efficiency, deliver power more reliably, and improve industrial productivity. We also profited again from our improved operational performance and expansion in emerging markets. This puts us in a strong position heading into 2008.
For Q4, ABB said:
“Large orders increased 27 percent in the fourth quarter and represented 19 percent of total orders received, the same as the fourth quarter in 2006. Base orders (less than $15 million) were up 24 percent (local currencies: 14 percent).
Revenues increased across all divisions for the full year and fourth quarter. Revenues were supported by the strong order backlog, increased volume resulting from high demand, and a favorable business environment in which increased raw material costs could be offset by higher prices.”
So many folks expect another good quarterly earnings from ABB tomorrow ABB has already announced that its order-book is growing strong in emerging countries like China,India, etc.
On Feb 13,2008 the company announced that the CEO Fred Kindle left ABB due to differences in strategy execution with other management. This pushed the stock down although temporarily. From a recent low of $23+ the stock, ABB is now back to $28.03.
The market seems to expect that ABB’s Q1 numbers will be good.This should push the stock price higher and by year year the stock may be in the mid to high 30s.
The Brazilian economy has been on a roll for many years now.The country
is able to exploit its abundant natural resources to cater to the
demand of emerging markets of China,India, etc.
Brazil has many advantages such as a democratic political system,plenty of natural resources, strong Foreign Direct Investment (FDI) flow, etc.No wonder that Brazil ADR stocks are a favorite pick of the investment community. Last year the ishares Brazil ETF EWZ was up a whopping 75%. this year the ETF is already up 8.8% this year.
Source:
Brazil ETF Benefits From Economics and Agriculture
There are many Brazilian ADRs trading in the US.For more details checkout:
We have written a few articles about Chile in the past.It is a commodity rich country – especially copper.Banking and mining stocks are a great investment in this South American country.
In an article titled “Commodities,Natural Resources keep Chile ETF on Fire” Tom Lydon of ETFTrends writes that:
In these commodity-crazy times, Chile and its exchange traded fund (ETF) might be something to think about.
The iShares MSCI Chile (ECH) launched on Nov. 20, and it’s been up 14.4% since then. Year-to-date, it’s up 11.5%. Chile is a commodity-based country and it is a surplus country with far less moving parts than in the U.S., says Roger Nusbaum for Seeking Alpha. Chile, in particular, has copper to spare. The metal is used in every major industry and growth in emerging markets is fueling demand for it.
Another perk about the Chilean economy is that the social security is privatized, so the demand for Chilean equities is consistent. Chile’s economy has an attractive position now as only 15% of its exports go to the United States, so the health of the U.S. economy isn’t a significant factor. “
An investment in Chilean stocks might payoff big in the longrun.
