"If you own a television, chances are you're quite familiar with the infamous squawking duck in Aflac's commercials. Aflac has also been in the news lately as the first American company to give shareholders a 'say on pay', or the ability to vote on executive compensation.
"Less well known, however, is Aflac's huge presence in the Japanese insurance market. In 2007, roughly 75% of the company's pre-tax operating earnings were generated in Japan.
"Alfac has been doing business in Japan for more than 30 years, and one in four Japanese households has an Aflac insurance policy. In Japan, Aflac sells healthcare policies for certain things that aren't covered by the national healthcare system, as well as life insurance. And, yes, they have a talking duck in their ads over there too.
"At a time when many financial companies are reporting massive write-offs, Aflac reiterated its target of 15% earnings growth this year, and double-digit growth in 2009. Aflac Japan is doing its part to help drive this growth with 19% operating earnings growth in the first quarter of 2008."
Each day, Steven Halpern's TheStockAdvisors.com offers the latest market commentary and favorite investment ideas from the nation's leading financial newsletter advisors.
"Putting stereotypes about risk aside, Israel offers a lot of interesting opportunities, even for fairly conservative investors. Cellcom Israel is a prime example. The company is Israel's largest mobile phone service provider, with sales of $1.6 billion in 2007.
"Since February 2007, the company has had a dual listing on both the New York and Tel Aviv stock exchanges. Discount Investment Corp. Ltd., one of Israel's largest business groups, owns just over 50% of the company.
"With 3.1 million subscribers, Cellcom has a 34% share of Israel's mobile telecom services market. Roughly three-quarters of Cellcom's subscribers are individuals, and the remaining 25% are corporate customers.
"Many of the industries that we think of as 'mature' in the U.S. are still in their infancy in Russia," notes global expert John Christy.
In his Forbes International Investment Report, he notes, "Advertising is a perfect example. Overall, the Russian ad market is growing at a 25%-30% clip." Here, he looks at CTC Media (NASDAQ: CTCM), one of the leading TV broadcasters in Russia.
"In 2007, total advertising spending in Russia was approximately $9 billion versus just $1.1 billion back in 2000. To put things in perspective, consider that in the U.K., Europe's largest ad market, spending is roughly $22 billion.
"With more than twice the population of the U.K., Russia's advertising market is less than half its size. Of course, it will take a very long time for Russia's economy to become as developed as Britain's but there is clearly a lot of room for growth.
"Television companies will be a prime beneficiary of this trend. TV accounts for about half of all advertising spending in Russia, or about $4.4 billion. And television advertising has been growing at 40% annually, an even faster pace than that of ad spending overall.
"One of the easiest ways for investors to tap into this growth is through CTC Media. The Moscow-based company is Russia's fourth-biggest broadcaster, with an 11.3% audience share.
"Our latest buy is Matthews Asian Technology Fund (MATFX), which has been added to our Global Core and Asia-Pacific Portfolios. While there's plenty of uncertainty in global markets at the outset of 2008, the tech sector and Asia's economies both look well-positioned to weather the storm.
"The Matthews Asian Technology Fund gives you the best of both worlds. With $245 million in assets, the fund has delivered annualized returns in excess of 25% over the past five years. It invests in a mixture of both large-cap and small-cap companies, with varying degrees of exposure to 'technology.'
"Some holdings, like Chinese search engine Baidu.com and the Japanese social networking site Mixi, are pure technology plays, whereas Korea's Samsung Electronics and Japan's Sony fall into the more mature camp of consumer electronics.
"Telecom is also among the fund's biggest holdings, with China Mobile and India's Bharti Airtel among the top 10 holdings. That means the fund won't always deliver eye-popping returns, but it offers a bit more protection on the downside."
Each day, Steven Halpern's TheStockAdvisors.com offers the latest market commentary and favorite investment ideas from the nation's leading financial newsletter advisors.
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.
"If China is Asia's ultimate growth story, the Philippines qualifies as the region's biggest turnaround story," says John Christy, editor of The Forbes International Investment Report.
"Long plagued by political instability and disastrous economic policies, the Philippines is finally getting its act together under President Gloria Macapagal-Arroyo. Economists expect GDP growth of nearly 7% this year and foreign investment capital is pouring into the country.
"My favorite stock for 2008 is Philippines Long Distance Telecom (NYSE: PHI), which is an easy way for US investors to get a piece of the action. It is the leading provider of wireless telecom services in the Philippines, with nearly a 60% market share.
"But wireless penetration rates in the Philippines are among the lowest in Asia, suggesting considerable room for future growth before the market becomes saturated. And broadband services in the Philippines are still in their infancy.
"PHI is currently trading at 13 times estimated 2008 earnings and roughly 7 times earnings before interest taxes depreciation and amortization (EBITDA). That makes PHI one of the cheapest names in the emerging markets telecom universe. Investors in PHI also enjoy a dividend yield of more than 5% as an added bonus."
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.
"Indeed, I now see Ericsson in a similar situation with my top pick last year, Nokia (NYSE: NOK), which has risen 67%. I am now seeing an almost identical situation unfolding with Sweden's Ericsson.
"But there are many more similarities than geography and industry affiliation. Let's take a look at some of the things I said about Nokia last year and compare them to Ericsson's situation today. Widespread skepticism among analysts: The knock against Nokia was that cell phones were becoming a saturated market. The skeptics also said Nokia would face competition from cheap upstarts in countries like China.
"The argument was that most folks who can afford phones already have them, and those who don't will probably end up buying cheaper ones than Nokia's models. Ericsson, in a slightly different way, is subject to similar skepticism. For example, analysts argue that Ericsson's telecom gear is more expensive than that of some of its upstart competitors and is therefore vulnerable to competitive pricing pressure.
"This is a valid point, but I can't imagine that the folks at Ericsson's headquarters haven't thought of all this and factored the issue of competition into the company's business plan.
"Meanwhile, Ericsson has a compelling valuation: The stock is trading at 14 times earnings and pays a 2% dividend yield. It is debt-free and consistently generates a healthy 20+% return-on-equity. Like Nokia, Ericsson will continue to benefit from booming global growth in mobile phone usage."
"Asia is still the place to be if you are looking for growth," says John Christy in The Forbes International Investment Report. Here, he looks at some favored Asian banking stocks -- in Japan, India and Korea.
"While China tends to get all of the headlines, the rest of Asia is on a solid economic growth trajectory for 2008. According to the latest Economist data, Hong Kong, South Korea, Singapore and Malaysia are all expected to deliver 5%+ gross domestic product growth next year. Taiwan isn't far behind at 4.6%.
"Of course, these numbers pale in comparison to forecasts of 10% for China and nearly 8% for India, but they're nothing to be ashamed of. With forecasts for Europe, the U.S. and Japan all hovering around 2%, Asia is still the place to be if you're looking for growth.
"Stock prices reflect much of this, but there are still plenty of pockets of opportunity. Asian financials are a good example. These names have been somewhat unfairly dragged down by the global credit mess and subprime fallout.
"I expect India-based Infosys (NASDAQ: INFY), one of our 'Global Core' holdings, to be one of our big winners in the year ahead," says John Christy.
The editor of the Forbes International Investing Report explains, "The company kicked off earnings reporting season with an 18% net income growth during the quarter. These earnings were in line with expectations. Of course, simply meeting expectations is never good enough for Wall Street, so INFY shares tumbled on the news.
"Infosys also revised its full-year EPS estimate upward to $1.99 per ADR, but again this wasn't good enough -- I guess some folks were expecting a bigger revision.
"The main concern continues to be the strength of the Indian rupee, which is close to a 10-year high. This is a fair point, but 18% earnings growth in the face of a stiff headwind from the rupee is pretty good in my book. And Infosys actually reported higher margins on an operating basis.
"Most importantly, we need to keep the big picture in perspective. Even the skeptics would agree that Infosys is one of the strongest and best-managed companies in the emerging markets universe."
"The silver lining in all the recent gloom is that credit market shakeout is basically a healthy development," says global expert John Christy in his Forbes International Investment Report.
Here, the advisor looks at the state of the market, the credit market problems and the re-pricing of risk as well as several leading European banks that he believes offer strong fundamental value for long-term investors. He notes, "While there's no question that European financial firms will feel a certain degree of pain, a lot of the bad news appears to be priced in at this point."
One favorite is ING ((NYSE: ING). He states, "The bank saw earnings rise 27% in the second quarter, and the Dutch bank-insurer's exposure to the sub-prime mess is negligible. ING looks extremely cheap at 8 times earnings. It also pays a 4.4% dividend yield."
Meanwhile, he notes that Deutsche Bank (NYSE: DB) is now trading at 7 times earnings and paying a 5% dividend yield. Allied Irish Banks (NYSE: AIB) is also sporting single-digit price-to-earnings multiples, he states. But, he says, "The long-term fundamentals for DB, ING and AIB haven't changed all that much - if at all - and this looks like a good buying opportunity for all three."
Christy is also bullish on UBS (NYSE: UBS) is the biggest bank in Switzerland and the world's largest money manager with $2.6 trillion of invested assets. He notes that while the firm can trace its roots as far back as the 18th century, its "real transformation" came in 2000 when UBS bought PaineWebber. He explains, "The merger gave UBS a major presence in the U.S. and helped lay the framework for a truly global institution."
Each day, Steven Halpern's TheStockAdvisors.com features the latest investment ideas and market commentary from the financial newsletter community.
Each month, the Forbes International Investment Report includes a Q&A feature with a fund manager or analyst which editor John Christy has chosen for "exceptional insight into global markets and investing."
His latest interview is with Gonzalo Pangaro at T. Rowe Price. Based in London, Pangaro, with 15 years of experience in Latin America, manages $6 billion in Latin American equities, including the T.Rowe Price Latin America Fund (PRLAX). Here are some highlights.
Forbes/Christy: Latin American stocks are having a great year so far. Is it too late to get on board?
Pangaro: "I don't think so. There are still very attractive opportunities in Latin America.The performance has been extremely strong in the past three years, but before then, Latin America traded sideways for 10 years. So we are coming from a very low base, and the macroeconomic improvement in many countries has been significant.
"Back in 1994, at the time of the 'Tequila Crisis', countries had exchange rates that were fixed at artificially high levels, big current account deficits, poor fiscal positions, and very high dollar-denominated external debt. So they were very vulnerable.
"All of that has changed. All the key countries have paid down their dollar debt, inflation is under control, currencies are floating freely, and current accounts are in surplus. So I think the economic situation has improved meaningfully.
Last December, over 100 stocks were featured in our Top Picks for 2007 report. Now, at mid-year, we turn to the 20 advisors whose picks showed the strongest gains to get an update on their previous picks, as well as a new favorite stock for the second half of the year.
Updating his outlook on Nokia, the advisor says, "I've been arguing for some time that investors have not been giving the company enough credit for its leading position in the global mobile phone market. Fortunately that mind-set appears to be changing, in part because of a strong Q1 earnings report.
"Although Nokia's net income for the quarter fell 7% due to some one-time charges, margins showed solid improvement across the board. At the same time, Nokia is gaining market share in key segments such as emerging markets (low-end) and in multimedia phones (high-end).
"The improvements in profitability suggest that Nokia is not pulling this off simply by selling dirt cheap phones. Instead, it looks more like the result of savvy cost control and continued innovation.
"Separately, Nokia and Siemens said that they plan to cut about 9,000 jobs in their telecom equipment joint venture. The reductions -- which were expected -- should help drive savings of $2 billion a year by 2010. The stock remains a buy in our global portfolio."
Last December, over 100 stocks were featured in our Top Picks for 2007 report. Now, at mid-year, we turn to the 20 advisors whose picks showed the strongest gains to get an update on their previous picks, as well as a new favorite stock for the second half of the year.
For his new favorite stock, the advisor looks south of the border, recommending América Móvil (NYSE: AMX). He explains, "Latin America has been one of the hottest regions for global investors in 2007. As of May 25, the Morgan Stanley Capital International Latin America index is up over 17% in U.S. dollar terms.
"But there's still plenty of money to be made south of the border. AMX is the dominant mobile phone service provider in Mexico. The company's reach extends beyond its home market to more than 125 million subscribers throughout Latin America, with operations in more than a dozen countries.
"Revenue topped $21 billion last year, about half of which came from outside Mexico. The company is controlled by Carlos Slim Helú, who overtook Warren Buffett earlier this year as the world's second-richest man.
"Chinese stocks are deep in bubble territory," notes John Christy, editor of The Forbes International Investment Report. Despite his concerns, he still sees select opportunities suggests several long-term buys in the region.
The advisor explains, "The Shanghai Composite Index -- which is limited mainly to local Chinese investors - is up more than 50% this year. It's only a matter of time before we see a huge correction, if not a crash."
But, he adds, that doesn't mean that all things Chinese should be avoided. Christy states, "China-related stocks that are listed in Hong Kong and here in the U.S. are still attractive if you are willing to stomach a little volatility in the short term." Included on his list of top long-term China holdings are Lenovo (OTC: LNVGY) and China Mobile (NYSE: CHL).
Lenovo, he notes, missed the China bubble entirely, despite he says, being the country's top PC maker. The company, he notes, just announced a new round of restructuring which will involve 1,400 job cuts-roughly 5% of its workforce in the coming year.
Says Christy, "Lenovo is still struggling to reap the full benefit of its acquisition of IBM's personal computer business. At the same time, it is trying to refashion its identity from a small Chinese PC maker to a truly global brand. These are not easy tasks and they will take time, but Lenovo is on the right track."
The advisor also looks to China Mobile, which he notes is is the country's leading cellular service provider. He says, "CHL is growing rapidly and offers tremendous long-term potential." However, it cautions that is not "especially cheap" at current levels and suggests patience for a better entry point.
In addition, he also looks toward Hutchison Telecom (NYSE: HTX), which he notes moved to a profit positon in the first quarter. He observices, While it is not a China play, it has operations in Hong Kong as well as other rapidly growing Asian markets such as Vietnam and Indonesia."
For more stock picks from the leading financial newsletter advisors, visit Steven Halpern's free daily website, TheStockAdvisors.com.
John Christy, editor of The Forbes International Investment Report, has long held Barclays (NYSE: BCS) in his model portfolio, and in recent months has been anticipating a merger deal. He now notes, "Rumors of a deal between Barclay's and Dutch bank ABN-Amro (NYSE: ABN) appear to be turning into reality."
This deal, in his view, will be an "interesting strategic combination" – in part because ABN's businesses in Europe, Asia and Latin America, for example, will help Barclays expand its global reach. Further, he notes that Barclays is a "pretty good" value, trading at 10 times earnings and paying nearly 4% dividend.
Despite its positive operating outlook, the advisor is choosing to sell the stock, noting, "Interesting strategic combinations aren't always the best stock picks."
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, who have shared some of their top investment ideas. To view all of the stocks featured in this special global report, click here.
Global expert John Christy -- editor of the Forbes International Investment Report -- has been very successful in selecting Indian outsourcing companies; two such firms -- Infosys (NASDAQ:INFY) and Wipro (NYSE:WIT) -- are both strong performing holdings in his model portfolio in recent years.
A third player in the sector -- Sify (NASDAQ:SIFY) -- has not shared in that success. Christy explains, "Sify shares got off to a decent start last year. But like other emerging market stocks, they got clobbered in the sell-off last May. Problem is, unlike the rest of the group, Sify never bounced back."
However, the company's prospects may be changing. He notes, "Sify's outsourcing business serves global companies like GE, Oracle, and Whirlpool, as well as local blue-chips such as Ranbaxy Laboratories, Bharti, and Jet Airways.
"It runs a chain of internet cafés throughout India and a family of internet portals. It also provides broadband access to about 200,000 homes. Sify's internet backbone reaches 186 cities across the country.
John Christy, editor of the 
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