I've just returned from the World Money Show in Orlando where more than 10,000 investors gathered to learn about global investing. I had a chance to meet with many of the U.S. and foreign financial experts featured at the show, and over the next week I will share some of their top investment ideas. To view all of the stocks featured in this special global report, click here.
Investors seeking growth and income should look to New Zealand -- a "gem that shouldn't be ignored," says Martin Weiss. The editor of Safe Money Report notes that New Zealand's short-term government yields of 7.25% are two full percentage points more than the federal funds rate in the U.S.
And, he expects the Reserve Bank of New Zealand to hike rates even further in March -- probably to 7.5%. Meanwhile, he adds, "Growth is strong. While home sales in the U.S. are falling, in New Zealand, they rose 19% year-over-year in December. Consumer spending is rising. So are corporate profits. And the New Zealand dollar is on the upswing, rising about 13% in the past six months.
His top buy on this market is Telecom Corp. of New Zealand (NYSE:NZT), that country's pre-eminent telecom utility. And he points out, investors can buy its American Depository Receipts in the U.S. through a regular brokerage account.
He explains, "The stock was beaten down to the $20 range in early 2006, prompted by a government move to compel the company to give its competitors easier access to its network. But now, we think the regulatory concerns are priced in to its share price, and a newer proposal being discussed would be less onerous."
Now, he notes, NZT's earnings are up 13% in the September quarter on a 4.7% rise in sales. And, the company is taking bids for its Yellow Pages directory business in a sale that Weiss believes could fetch up to $1.5 billion.
Further, the company plans to distribute some of that money to shareholders. Plus, even without that extra distribution, he notes that NZT is paying out quarterly per-share dividends of between 42 cents and 56 cents -- good for an indicated yield of around 6.3%."
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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