"We've scoured the world for stable businesses with high yields and the potential for currency-based gains," says Martin Weiss.
In his Safe Money Report he notes that he is focused on firms with steady, stable businesses. And two global telecoms that fit this profile are Telecom Corp. of New Zealand (NYSE: NZT) and Chunghwa Telecom (NYSE: CHT).
He explains, "Telecom Corp. of New Zealand is benefiting from both the strong New Zealand economy and the continuing sharp rise in the NZ dollar. Right now, the company is in the midst of a debate with the government over how to split up its operations."
He continues, "The government wants a reorganization that will promote phone competition and boost high-speed Internet use. NZT wants to make sure any changes won't prove too costly or complex. It's too soon to predict the details, but we're confident that any plan will treat all parties fairly -- including shareholders."
As for Chunghwa, a Taiwanese telecom firm, he notes that the company appears ready to shift into high gear. The catalyst? First-quarter net income jumped 21% to 12.1 billion Taiwan dollars ($363 million) from 10 billion Taiwan dollars ($300 million) a year earlier, which Weiss points out is the biggest rise in more than three years.
Meanwhile, he adds, to keep earnings headed in the right direction, Chunghwa is cutting jobs and expanding its new service offerings -- Internet television, higher-speed broadband,and more advanced wireless phone services. The advisor rates both telecoms as buys for U.S. investors seeking global diversification.
For more stock picks from the leading financial newsletter advisors, visit Steven Halpern's free daily website, TheStockAdvisors.com.
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