emergingmarkets posts
FeedPosted Mar 26th 2010 5:20PM by Robert Hsu (RSS feed)
Filed under: China, Expedia Inc (EXPE), Stocks to Buy

As an investor in Chinese stocks, I'm constantly bombarded by predictions of the country's coming economic bust. When a
scandal at poultry company Yuhe International (
YUII) brutalized this stock, people emailed me, saying that all Chinese companies are cooking the books. When a
China-based ETF pegged to the S&P 500 launched, I was told that it was a clear sign that investors there knew it was safer to invest here than in their own country. The list goes on and on.
Lately, the recent pullback in several high-profile Chinese stocks, as well as a pullback in the iShares FTSE/Xinhua China 25 Index (
FXI) -- the major Hong Kong market index -- has been cited as more evidence for the country's pending economic hardship. While it is true that some stocks have sold off lately after big runs higher in 2009, FXI is only down 3.8% over the past three months. That's hardly a huge giveback. And besides, America itself would be in pretty dire straits if every market slide meant that its economy was doomed.
Continue reading Five Stocks That Prove the China Boom Isn't Over
Posted Jan 26th 2010 6:30PM by Joseph Lazzaro (RSS feed)
Filed under: International Markets, Forecasts, Good news

Tuesday's upbeat data point: the International Monetary Fund is now forecasting that the global economy
will grow 3.9% in 2010, up from the earlier forecast of 3.1% growth in October 2009.
The global economy grew a scant 1.3% in 2009, equivalent to a global recession -- the world's first since the end of World War II. The IMF also expects the global economy to growth 4.3% in 2011.
What's more, the IMF also raised its 2010 GDP growth forecast for the United States to 2.7%, up from the earlier 2.6% estimate. The U.S. economy contracted 0.3% in 2009, using the IMF's methodology and data. Meanwhile, the developed world is expected to growth 2.1%, in 2010, after an -0.7% contraction in 2009.
China's economy is expected to grow 10.0% in 2010, leading a 6.0% emerging market rebound. The IMF sees India growing 7.7%; Russia, 3.6%; Brazil, 4.7%; Mexico, 4.0%.
Continue reading Ray of Light: IMF Ups 2010 Global Growth Forecast to 3.9%
Posted Dec 10th 2009 2:20PM by Tom Johansmeyer (RSS feed)
Filed under: International Markets, Good news, Competitive Strategy
Long a topic of discussion, insurers and reinsurers are beginning to enter the microinsurance space. Scor (SCOR) firm invested in LeapFrog Investments, the first microinsurance fund, last month, and last week, the Microinsurance Network was launched in an effort to raise awareness of the sector.
In a mature industry, microinsurance is seen as having considerable growth potential, especially given the large numbers of people around the world who live without any form of coverage. Microinsurance protection ranges from property catastrophe to life and health. A recent study by Lloyd's of London found that 135 million people, 5% of the world's low-income people, are using microinsurance products, but that the total market size could range from 1.5 billion to 3 billion.
Continue reading Small is beautiful: Insurance companies turn to micro for growth
Posted Sep 15th 2009 10:40AM by Tom Johansmeyer (RSS feed)
Filed under: Bad News, Industry, Marketing and Advertising
Pharmaceutical company Eli Lilly & Co. (NYSE: LLY) is planning to cut 5,500 jobs over the next few years and reorganize into five business units. The company is looking to reduce costs and accelerate how long it takes new drugs to get to market, especially as its top performers see their patents expire. This translates to a workforce reduction of close to 14% – to 35,000. This measure doesn't include new positions in emerging markets with high potential and Japan.
The company hopes to cut as much as possible through attrition and retirements – and it would not indicate how many other positions would have to be cut.
Eli Lilly's goal is to slash its annual cost by $1 billion during this restructuring. The new business units will be: cancer, diabetes, established markets, emerging markets and Elanco, which is its animal health business. This is a change from the existing functional model, which separates U.S. and global marketing for each drug in the company's portfolio. Through the new structure, Lilly says, drug development and marketing will be tied more closely.
Continue reading Eli Lilly to restructure, bet on drug portfolio
Posted Aug 24th 2009 2:40PM by Steven Halpern (RSS feed)
Filed under: China, Brazil, Newsletters, ETF Investing, DJIA, Stocks to Buy
"Our latest pick combines two highly profitable asset classes, small caps and emerging markets," says Nicholas Vardy. In The Global Bull Market Alert, he an emerging markets ETF.
"The SPDR S&P Emerging Markets Small Cap ETF (NYSE: EWX) offers you access to small caps in emerging markets that otherwise would be off limits.
"While some of the larger emerging market stocks trade in the United States, these smaller players never will.
"In addition, it's well known that U.S. small caps tend to outperform large caps over the long run. Their small size makes them nimble and quicker to react to changing market conditions.
Continue reading Vardy's view: Bet on emerging markets small caps
Posted Jul 28th 2009 11:00AM by Steven Halpern (RSS feed)
Filed under: International Markets, Newsletters, Commodities, Oil, Agriculture, Stocks to Buy
"When most people think of Africa, images of business and commerce don't usually spring to mind -- more like wildlife, safaris and famine," suggests Nathan Slaughter.
In The ETF Authority, he explains, "But those perceptions are beginning to change as these countries continue to industrialize. And at the vanguard of this transformation is South Africa." Here, he looks at the iShares MSCI South Africa ETF (NYSE: EZA).
Slaughter explains, "Once a backwater country shunned by most of the international community, South Africa has made great strides over the past decade and continues to evolve. Fifteen years ago the government began an aggressive overhaul of South Africa's economy.
Continue reading Out of Africa: ETF expert eyes South Africa
Posted Jun 22nd 2009 5:00PM by Joseph Lazzaro (RSS feed)
Filed under: Kimberly-Clark (KMB), Stocks to Buy

Readers of this space know that the investment bias is toward large-cap companies with demonstrated business models and who have a competitive advantage in established markets, preferably with a favorable, global trend as a support. And with the aforementioned in mind,
Kimberly-Clark Corporation (NYSE:
KMB) is worth a review.
In general, analysts expect a sales decline of 4-6% for KMB in FY2009, including a negative foreign currency effect. Kimberly is being hurt by both the recession -- which has prompted widespread belt-tightening by consumers -- and by increased competition. The First Call FY2009/FY2010 EPS estimates for KMB
are $4.16 to $4.64.
Continue reading Kimberly-Clark is undervalued
Posted Jun 15th 2009 4:40PM by Joseph Lazzaro (RSS feed)
Filed under: Stocks to Buy
Monsanto Company (NYSE:
MON) is another one of those demonstrated business companies that was treated rudely by Wall Street in 2008. Pushed to highs over $130 during the commodities mania of 2008, the Street then proceeded to take shares to the mid-$60s. Rational? Hardly.
Hopefully, rationality will re-assert itself in the years ahead. In general, analysts see 6-9% revenue growth for FY2009, led by stable corn and soybean seeds sales.
Continue reading Monsanto provides the seeds of success
Posted Apr 23rd 2009 5:00PM by Joseph Lazzaro (RSS feed)
Filed under: Hershey Co (HSY), Stocks to Buy

Readers of this space know that the investment bias is toward large-cap companies with demonstrated business models and who have a competitive advantage in established markets, preferably with a favorable, global trend as a support. And with the aforementioned in mind,
The Hershey Company (NYSE:
HSY) is worth a review.
In general, analysts see only modest revenue growth for HSY for FY 2009. However, an improved supply chain should reduce costs, and also free-up more capital for strategic growth initiatives at home and abroad.
Continue reading Hershey delivers sweet profits
Posted Apr 9th 2009 2:00PM by Steven Halpern (RSS feed)
Filed under: International Markets, Brazil, Newsletters, Mutual Funds, ETF Investing, Commodities, Oil, Agriculture
"We have been recommending iShares MSCI Brazil (ASE: EWZ) in our speculative portfolio," says mutual fund and ETF expert Mark Salzinger.
In The Investor's ETF Report, he adds, "But we now think Brazil's solid long-term economic fundamentals and the ETF's 'scompelling valuation and well-positioned companies offer exceptional return potential as a portion of some investors'core portfolios, too."
"Brazil's stock market was assailed on all sides in 2008, when EWZ declined by about 55%. Robust gains in the previous five years had priced Brazil's stocks dearly, and investors'decreased tolerance for any perceived risk saw them abandon emerging markets stocks in droves.
Continue reading ETF expert looks to Brazil
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