"Thailand had a political crisis in 2006, when the democratically elected government was overthrown by a military coup," recalls international investing expert Mike Burnick.

"But the country is emerging from its crisis with a fresh pro-growth mandate," he notes in his Global Market Investor. Here, he looks at a closed-end fund for those seeking to play this trend.

"Thailand experienced a sharp stock market crash and 18 months of political chaos. But now, the crisis appears to have passed. In March, the Thai military stepped aside, and a newly elected government was installed in Bangkok, which looks a lot like Thailand's old government under Thaksin!

"In fact, the newly elected government chose a cabinet that is packed with allies of the former prime minister. Bangkok is also busy pursuing the same pro-growth agenda with an emphasis on tax cuts and government infrastructure spending. . . . And the plan is working.

Continue reading Thai Capital (TF): Global growth at a discount

Thai Capital (TF): Global growth at a discount originally appeared on BloggingStocks on Wed, 14 May 2008 14:15:00 EST. Please see our terms for use of feeds.

"When it comes to sentiment indicators, one of my favorites is insider buying," says Mike Burnick, editor of Global Market Investor.

The advisor is intrigued by insider buying in the financial sector -- particularly among regional banking stocks. He explains, "The insiders are buying with both hands. Now's the time to go long." Here, he looks at the KBW Regional Bank Index ETF (ASE: KRE).

"U.S. corporate insiders are now buying more of their own shares than they're selling for the first time since 1995. Nearly 2,000 insiders at NYSE listed companies are snapping up shares - while total buys beat out sells by 1.44 times.

"There are many reasons to sell, but there's really only one reason to open your wallet and buy stock... you think it's dirt-cheap and likely headed much higher in price.

"This insider buying is taking place all across corporate America, but it's especially significant in the beaten-down banking sector. Stock buying by insiders at banks, consumer lenders and insurers in the S&P 500 index jumped recently to the highest level in 12 years.

Continue reading Insider buying in regional banks

Insider buying in regional banks originally appeared on BloggingStocks on Fri, 14 Mar 2008 15:17:00 EST. Please see our terms for use of feeds.

"Will the 'Land of the Rising Sun' ever rise again?" asks Mike Burnick in Global Market Investor. "From a valuation perspective, Japan is a real bargain; in fact, half its stocks trade below book value." Here is his review.

"First, let's cover the bad news; Japan's economy is slowing right now, just like the U.S. and Europe. Consumer spending is slumping worse than in the U.S. In other words, the domestic economy looks dismal. But at the same time, Japan's exports are booming, businesses are flush with cash, and industrial production is running strong.

"The reason is that Japan is an economy in transition, for years they counted on exports to the U.S. and Europe, but today China is becoming its most important trading partner. Exports to China jumped nearly 14% in November, as overall exports expanded 10%. That's why a slowdown in the U.S. and Europe may not hurt Japan as much as some people think.

"What was already one of the world's cheapest markets just went into deep-discount territory last year. In fact, half the stocks listed in Tokyo now trade below book value. In other words, the share price is less than the stock's per share net worth - that's unheard of in developed markets.

Continue reading Japan: 'High yields; bargain prices'

Japan: 'High yields; bargain prices' originally appeared on BloggingStocks on Mon, 28 Jan 2008 16:19:00 EST. Please see our terms for use of feeds.

For 25 years, Steven Halpern, editor of TheStockAdvisors.com, has surveyed the leading financial newsletter advisors asking for their favorite stocks for the coming year. This article is one of 100+ ideas in the Best Stocks for 2008 report.

"My favorite 'home run' speculation for 2008 is playing a rebound in the beaten-down US housing sector," says Mike Burnick, editor of Global Market Investor.

"Specifically, I like the iShares Dow Jones US Home Construction ETF (ASE: ITB). This exchange-traded fund is a pure contrarian play not based on valuation, since fundamentals continue to deteriorate in the US housing market.

"The US housing market is still a mess, home prices are plunging, sales continue to slump, and inventories of unsold homes are at record highs. There's very little we can see to like in this sector.

"But, in fact, that's often the key to earning big returns in the stock market: Make well-timed contrarian bets on the most unloved stocks and sectors.

"However, I believe that negative sentiment in the sector has reached an extreme. Put/call volume on homebuilder stocks is at an extreme, and short interest is near record highs. I believe the turning point for this sector is close at hand.

Continue reading Best Stocks for 2008: Contrary call on US Home Construction ETF (ITB)

Best Stocks for 2008: Contrary call on US Home Construction ETF (ITB) originally appeared on BloggingStocks on Thu, 27 Dec 2007 14:15:00 EST. Please see our terms for use of feeds.

For 25 years, Steven Halpern, editor of TheStockAdvisors.com, has surveyed the leading financial newsletter advisors asking for their favorite stocks for the coming year. This article is one of 100+ ideas in the Best Stocks for 2008 report.

"My favorite, and more conservative investment idea for 2008 is Japan -- specifically, the iShares MSCI Japan ETF (ASE: EWJ)," says Mike Burnick, editor of Global Market Investor.

"Japan has been one of the most out-of-favor major industrial stock markets over the past two years, yet corporate profits are growing at a fast pace, thanks to a robust export market. Japan's proximity to China certainly helps in this regard, as Japan has become a key exporter to China, as well as other emerging Asian nations.

"From a valuation perspective, Japan appears to be the most undervalued major market in the world right now. Many blue-chip Japanese banks and industrial firms sell at book value or even less then book.

"Meanwhile, bonds typically yield more than stocks, to compensate investors for the lack of appreciation potential in bonds. However, in Japan today the normal stock/bond risk/reward relationship is turned upside-down.

Continue reading Best Stocks for 2008: Global expert goes with Japan ETF (EWJ)

Best Stocks for 2008: Global expert goes with Japan ETF (EWJ) originally appeared on BloggingStocks on Sun, 23 Dec 2007 15:35:00 EST. Please see our terms for use of feeds.