The European Union (EU) has always been a complex structure, but now it is becoming more so. Economic activity varies widely from country to country. For example, the more established economies of Germany, France and Italy are the strongest at this moment with the economies that were part of the Soviet Union, such as Romania, Hungary and the Czech Republic are much weaker. The EU discussed this matter recently and agreed to help Eastern European countries on a country by country basis.

Continue reading Will Europe stay united?

Will Europe stay united? originally appeared on BloggingStocks on Tue, 03 Mar 2009 09:00:00 EST. Please see our terms for use of feeds.

Now that it is clear that Wal-Mart's (NYSE:WMT) international operations are growing much faster than its US division, the company is searching for new frontiers. Revenue overseas is growing at a rate better than 20%

Wal-Mart has had trouble in some countries. Its operation in Japan continues to loss money and it has pulled out of Korea and Germany.

Now, the world's largest retailer is looking to Russia and eastern Europe for more growth. According to the FT, Wal-Mart "firmly signaled its intention to expand into Russia and eastern Europe, announcing that it had recruited Stephan Fanderl, a German retail executive, to explore opportunities in the region."

It will be at least a couple of years before the market can gauge whether Wal-Mart can have success in the region. It has to compete with other companies like big European retail chain Tesco. The Wal-Mart model clearly does not work in all cultures.

A break-down of Wal-Mat's track record overseas is telling. It problems in Germany, Japan, and Korea have been more than off-set by successes in China and Mexico. To some extent that may mean that countries with lower median incomes are better markets for the company. Russia and Eastern Europe are a mixed bag. Parts of Russia have done very well financially. Eastern Europe is still in a stage of economic development.

Wal-Mart may be expanding outside the US, but its success is hardly assured.

Douglas A. McIntyre is an editor at 247wallst.com.

Wal-Mart (WMT) looks to Russia originally appeared on BloggingStocks on Tue, 15 Apr 2008 10:35:00 EST. Please see our terms for use of feeds.

Like never before, the rapidly growing global economy is raising the standard of living dramatically for hundreds of millions of "newly minted capitalists" in China, Russia, India, Eastern Europe, Brazil and elsewhere. They are buying bikes and cars, cell phones and flat-screen televisions, the latest fashions and the latest music. They are also changing their diets and eating much more.

No longer satisfied with your standard fare of starchy rice, potatoes and beans, they have increased their consumption of fish, poultry, beef, and a wider variety of fruits and vegetables, and even alcoholic beverages. Of course they continue to adopt the dubious growth of western fast food restaurants too.

In my pursuit of 2008 value stocks that offer growth opportunities and safety too, I looked for companies that would benefit from these trends. As consumption increases in some of these expanding economies, the following companies have greatly benefited, and they seem postured to continue their growth in the coming years.

Continue reading Serious Money: ADM, Bunge, Potash Corp. -- it's a hungry world

Serious Money: ADM, Bunge, Potash Corp. -- it's a hungry world originally appeared on BloggingStocks on Fri, 21 Dec 2007 18:23:00 EST. Please see our terms for use of feeds.

Yesterday I posted Chasing Value: Harley-Davidson (HOG) looking on down the road and actually bought a few shares. Late in the day I received a comment from one of our frequent readers whose opinions I have grown to respect, although he can be a little harsh at times. This reader raised some interesting points I thought worth some consideration. He wrote:

• "I don't like the stock. I see it as a luxury item for aging Baby Boomers. The ones who always wanted one, (or who) already own one. The younger generations aren't interested. I also think you're making a classic mistake when you speculate by saying "if it returns to its former level within the next few years."

He is correct that there is no assurance a stock will return to past glory. It is entirely possible that a company may fade away, just like Levi Strauss did when competitors stormed its castle from all sides with cheaper products, fancier products, variations on a theme and jeans made by other strong brands that extended their product lines into Levi's historic stronghold.

Similar things are happening now to Harley-Davidson (NYSE: HOG) as Honda Motors, Yamaha, Kowasaki and Suzuki take on "style and look" of the classic American "HOG" ride. They do it cheaper, with less effort and even borrow American icons like eagles and flags to promote their machines. They also offer a smoother ride in many cases, as Harley clings to the past and continues producing motorcycles with what it calls "edgy" (read "rough") rides. It is also true that younger motorcycle enthusiasts do not appreciate the Harley mystique in the same way as Baby Boomers have.

Continue reading Chasing Value: Will Harley-Davidson (HOG) fade like Levi Strauss?

Chasing Value: Will Harley-Davidson (HOG) fade like Levi Strauss? originally appeared on BloggingStocks on Fri, 21 Sep 2007 16:35:00 EST. Please see our terms for use of feeds.

The last time I bought Harley-Davidson (NYSE: HOG) I paid $18 a share and it is one of our oldest holdings. Today, I finally bought some more. I probably share way too much personal information with readers of BloggingStocks but I just can't bring myself to suggest to people something I would not do myself, and in any case my readership is not large enough to move the market (nor is the few shares we acquired.) Too many advisers are promoting stocks they themselves would not touch with a ten foot pole.

Harley is near a 52-week low of $46.15, closing yesterday at $48.59. Management trimmed production levels recently to better balance with demand after years of very healthy increases. It was bound to overshoot demand at some point and it is wise to moderate production. HOG had reached its 52-week high of $75.87 last November (2006). I am not looking for miracles with this purchase. I am looking for a sound business with good management, at a value price and solid prospects, and Harley-Davidson is all of that, and then some. A patient investor need not expect anything more than a return to its high sometime over the next three years.

Continue reading Chasing Value: Harley-Davidson (HOG) looking on down the road

Chasing Value: Harley-Davidson (HOG) looking on down the road originally appeared on BloggingStocks on Thu, 20 Sep 2007 14:50:00 EST. Please see our terms for use of feeds.

It just keeps rolling along. "China Inc." keeps beating it's own trade records. It posted a trade surplus of $24.97 billion for August, up from $18.8 billion a year earlier, the customs administration said today, according to CNBC. That's not all, China just passed Canada as our number one trading partner, which although not unexpected, is just another example of the export steam roller that shows no signs of slowing down. All this despite numerous product safety recalls.

We are buying Chinese products at an ever increasing rate. It should also be noted that they are buying our goods and services at an ever increasing rate too. The problem is that they are getting the better end of the deal for now and the gap between imports and exports is increasing. When I wrote Stop blaming China - partners win, whiners lose, I addressed some of these issues, and readers added many more. Some categorized the situation as a Chinese trade war but I take exception to this. I think we are facing very strong Chinese competition and the question is are we prepared?

Our trade deficit is only part of the problem. While China is creaming us with very low labor rates and worse environmental, safety, and legal (piracy) issues, all of which need to improve to level the playing field, there are other issues that we should fear more. That is our failure to compete in producing math, science, and engineering graduates or even having a plan to stimulate improving our graduate rates in these areas. If we do not remain strong in these areas we will be exporting more and more engineering jobs, and worse, the things China imports now might slow down drastically. Many of the things China manufactures now are designed and engineered in the United States. Nothing guarantees this situation will remain as is. It is all very fluid and will become more so. We face the same dilemma with regards to India and eastern Europe.

Continue reading China hits $25 billion record surplus: Exports + ACH, HNP & PTR

China hits $25 billion record surplus: Exports + ACH, HNP & PTR originally appeared on BloggingStocks on Tue, 11 Sep 2007 16:15:00 EST. Please see our terms for use of feeds.