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 who were featured at the show, and I am highlighting some of their favorite investment ideas. To view all of the stocks featured in this special global report, click here.
"One of the fastest-growing investment vehicles in the history of the financial markets is the exchange-traded fund," notes Chuck Carlson, editor of The DRIP Investor.
"And the company behind iShares exchange-traded funds is not an American company. It is a United Kingdom-based company. That company is Barclays PLC (NYSE:BCS), which operates in more than 60 countries and manages more than $1 trillion of the world's money.
"ETFs are still very much in their fast-growth phase. While assets have grown sharply, many investors still are not familiar with these investments. That will change over the next few years. With a strong brand and big first-mover advantage, Barclays has positioned itself to be the major beneficiary of this huge expected growth.
"Meanwhile, takeovers are occurring on almost a daily basis. The takeover mania is being fueled by a tidal wave of liquidity. Private equity firms, hedge funds, and corporate America are awash in cash, and they are putting that cash to work by buying firms. And Barclay's is one stock that has reportedly been in the cross-hairs of a buyer.
"The stock jumped recently on speculation that Bank of America (NYSE:BAC) was considering a buyout of the firm. Quite honestly, when I read that Barclays might be acquired, I had mixed emotions. On the one hand, you would expect a short-term pop in the stock if some entity does make a run at the firm.
"On the other hand, I think these shares have an outstanding future and could see the stock registering big gains over the next five or ten years. Thus, my preference would be for the company to remain independent. Of course, Barclays doesn't consult with me on such matters, so we'll just have to see how this pans out.
"I still believe the stock merits buying at these prices. You get a healthy yield of 3.6%, not to mention capital-gains potential over the next 12 months that I believe will outpace the overall market.
"And the good news for DRIP investors is that Barclays offers a direct-purchase plan whereby any U.S. investor may buy stock directly, the first share and every share. The minimum initial investment in Barclays' direct-purchase plan is $200."
Steven Halpern's TheStockAdvisors.com provides a free, daily overview of the latest stock ideas from the nation's leading financial newsletters.
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Reader Comments (Page 1 of 1)
2-20-2007 @ 2:23AM
Craig said...
Great news ! Perhaps someone in corporate America will wake up and buy my URL ETFs.com and I can sail off into the sunset.