Chile – The Commodity Boom Continues !!

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.

France ADR Stocks List !!

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France has one of Europe’s largest economies. There are many high quality firms in France that are worth looking into.Companies like Sanofi-Aventis,AXA,Groupe Danone,Lafarge,Peugot Citreon, etc. excel in their field.

Some of these firms are listed as ADRs in the US.French ADR stocks are listed in the table below:

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Dividend Gems – ADRs !!!

Stocks that pay dividends are always a better bet than those that don’t. There are thousands of dividend paying ADRs. The trick is to find stocks that have a higher “Payout Ratio” and payment consistency over many years.

“Payout Ratio” just means the percentage of profits a firm pays out as dividends to shareholders. For eg – if a company XYZ Inc makes $100M in profits and its dividend payout ratio is 50%, then the company pays out $50M in dividends to its shareholders. XYZ Inc will be better than a company that pays out only 40%.

Dividends in general are an indicator of a firm’s profitability. It is something that cannot be faked and is real cash coming out of profits. So if a firm does not make profits it cannot pay a dividend. For eg – XYZ cannot borrow $50M and pay it out as dividends if its business went bad and the firm makes $0 in profits.

Higher payout ratio indicates that the company believes that there is not enough growth opportunities to re-deploy the profit and hence it makes sense to distribute the cash to stockholders who may use it as they wish. Higher payout ratio also indicates that the company is making more profits than a firm with a lesser ratio.

The following list shows a few ADR stocks that have high payout ratio. Most of them are banks as they tend to have higher yields.

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Note: More stocks will be added to this table periodically

Personal and Household Items ADR Stocks !!

The table below displays some of the Personal and Household Items ADR Stocks
available in the US.It includes world famous brands like Henkel, Puma,Adidas,Benetton,etc.

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Henkel is a top detergent manufacturer.Their Purex brand is sold in the US
and Persil is the No.1 detergent in Germany.Henkel’s other products
include dishwashing liquids, soaps(Dial), etc. These are sold in many
developing countries as well.

Puma and Adidas are established names in the footwear and sports
apparel industry.Benetton is a famous clothing company from Italy
known for its provocative and controversial ads.:-)

Related Link:
Taking A Fresh Look At Henkel

Chilean ADR Stocks !!

Chile is a mineral rich country. Chile is the world’s biggest exporter of Copper. The country was ruled by the military dictator Augusto Pinochet from 1973 to 1990. During this time, many of the state owned firms were privatized under the guidance and advise of a team of economic experts who had earlier studied in the University of Chicago (known as the “Chicago Boys”). Due to the economic foundation created by them and the following governments, Chile is now a prosperous and stable country in South America.

There a 17 Chile stocks available as ADRs. Some of the stocks such as Lan Chile, Banco de Chile are great performers.

The following is the list of Chilean ADRs:

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