I've just returned from the World Money Show, where some 10,000+ investors gathered to learn about global investing. I had a chance to meet with many of the advisors featured at the show, and I will be highlighting some of their favorite investment ideas. To view all of the stocks featured in this special global report, click here.
One of the most popular sectors among advisors at this year's World Money Show was telecom, and John Christy sees long-term opportunity in two leading cell phone makers.
The editor of The Forbes International Investment Report explains, "Fourth quarter earnings for mobile phone maker Finland's Nokia (NYSE:NOK) knocked the cover off the ball. Net income rose nearly 20% to $1.7 billion, beating analyst forecasts.
"And even though the average selling price for its handsets fell, NOK was still able to boost its profit margins. Nokia is also jacking up its dividend by 16%, and is buying back 4 billion euros worth of stock.
"Growth in the Asia-Pacific region topped 60% -- an encouraging sign that the company's strategy of focusing on emerging markets is paying off. Nokia is also planning to roll out a fresh new line of more than 30 handset models in 2007.
"Compare this to Motorola (NYSE:MOT), which has yet to come up with successful replacement for its popular RAZR phone, missed its latest quarter by a country mile, and is now under attack by activist investor Carl Icahn. I'd much rather own NOK.
"Swedish firm, Ericsson (NASDAQ:ERIC) failed to impress Wall Street with its latest quarterly report. Sales rose 18% in the fourth quarter and earnings came in 14% higher at $1.4 billion. That was the good news.
"The bad news: Ericsson said it expects slower growth in telecom equipment and systems sales in 2007. That spooked investors and the stock dropped about 7% on the news. This looks like an overreaction. Ericsson is the dominant global player in telecom equipment. That's not going to change anytime soon.
"Demand for its gear will ebb and flow at times, but the long-term trend line for the next generation of mobile telecom equipment looks solid. Ericsson's handset venture with Sony (NYSE:SNE) is another bright spot. Sony Ericsson's pretax profit surged 144% in Q4 and it continues gain market share globally."
Steven Halpern's TheStockAdvisors.com provides a free, daily overview of the latest stock ideas from the nation's leading financial newsletters.
Closing Bell: When We All Love the PIIGS (NBG, SQNM, PG, ERTS, KO)
Serious Money: Cheapest Stocks List Shrinks from 26 to 21
Chasing Value: Hasbro Earnings Makes My Point
