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| Drummond Brodeur of CI Investments |
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| BUY | China Mobile Hong Kong | CHL-N | 50.530 | Largest cellular company in the world. The dominant operator in China. It will respond as China's actions start picking up over the next 6 months. | 2008-09-26 | ||
| PAST TOP PICK | iShares Japan | EWJ-N | 11.100 | (A Top Pick July 24/07. Down 10%.) Got hit in the market downturn but Japan fundamentals are the same as they have always been. Not worried about their financial system. This was a defensive move. Would be looking to switch out of Japan and into China for the growth going forward in the 2nd half. | 2008-09-26 | ||
| BUY on WEAKNESS | Honda Motor Ltd. | HMC-N | 32.000 | This and Toyota (TM-N) are very strong companies and will be strong survivors going forward. Honda has a little bit more exposure to the US market than Toyota but a little less exposure to Japan. Both companies are very well positioned into the emerging markets. By them on a pullback. | 2008-09-26 | ||
| BUY | Vale S.A. | VALE-N | 20.890 | Probably starting to get pretty cheap valuations. He is cautious on resource prices in the short term but it is reaching a point where supply is going to be shut down. This is positive for longer-term fundamentals. If growth starts coming out of China as well as India and the emerging market, there will be substantial demand for commodities. Good for a long-term hold. | 2008-09-26 | ||
| DON'T BUY | China Life Insurance | LFC-N | 57.250 | Largest life insurance company in China. It is frequently played as a proxy on the Chinese/Asian market. China has recently made some moves to stimulate growth. Quite optimistic about the Chinese market over the coming 12 months. However, this company is expensive compared to global life insurance companies. Speculators stock. | 2008-09-26 | ||
| Comment | A Comment -- General Comments From an Expert | A Commentary | 0.020 | Gold in the Asian markets: Thinks gold will be a defensive holding through the current crisis. Asia has increasing concerns about the future stance of the US$. How much money is going to have to be printed and will that bail out the strength of the US$ going forward. Once we are through this crisis, they have to monetize the debt, which tends to be inflationary. Asia is a massive holder of US treasuries. Chinese continue to support US treasuries. | 2008-09-26 | ||
| Comment | A Comment -- General Comments From an Expert | A Commentary | 0.020 | Asian/Pacific stocks: looking for more downside but valuations are getting to be quite attractive. Feels this is a part of the world where you want to be. Needs to see less savings and more spending in Asia and more savings and less spending in the US to correct the imbalances. Will make Asia/Pacific an attractive place to be in the next 3 to 4 years. Next 6 months you will have a chance to buy when people start to panic out of them. | 2008-09-26 | ||
| Comment | A Comment -- General Comments From an Expert | A Commentary | 0.020 | India's Banking Industry: Cautious on the short-term. Had a huge economic run. Increased growth by clearing out some bottlenecks but also saw a massive inflow of foreign capital. This capital is starting to leave. India runs a small current account deficit so they have to attract funds from overseas. Have higher inflation than most of the emerging markets. Has a tough 12 months ahead of it. | 2008-09-26 | ||
| PAST TOP PICK | iShares Xinhua China 25 ETF | FXI-N | 36.150 | (A Top Pick July 24/07. Down 21%.) This was a way to get into Asia in a diversified way. If you want an ETF into China this is a pretty good entry point if you feel China will grow. | 2008-09-26 | ||
| WAIT | Claymore BRIC ETF | CBQ-T | 28.300 | Hasn't looked at this one but presumes it will mirror the performance of the BRIC countries. You are going to get a chance to get this at lower levels in the next 3 months. Ultimately, the BRIC (Brazil, Russia, India and China) particularly led by China and Brazil, are going to continue to be the driving force for the global economy. | 2008-09-26 | ||
| TOP PICK | Nintendo Company Ltd. | NTDOY.PK-OTC | 0.010 | Wii games/products. A company that has redefined what the game space is all about. Trading at about only 14X earnings. 5% dividend yield. Hugely defensive and in a very strong space in the product development cycle. | 2008-09-26 | ||
| PAST TOP PICK | Suntech Power Holdings Co. Ltd. | STP-N | 38.480 | (A Top Pick July 24/07. Up 24%.) Bullish on the solar sector. When you look at the energy demand that is coming out of China and emerging markets there is no way this can be provided on a carbon-based system. One of the largest in the space and lowest cost operator. Good buy below $40. | 2008-09-26 | ||
| DON'T BUY | Aluminum Corporation of China | ACH-N | 16.620 | He is quite concerned about aluminium. There is still a significant oversupply globally. This company also has cost increases coming up, increasing pressure on their margins. | 2008-09-26 | ||
| TOP PICK | Li & Fung Ltd. | 494-HK | 0.010 | (Hong Kong exchange.) Worlds largest sourcing company and one of the best-managed companies in Asia. Supply a thought of the private label goods for JCPenney, Kroger, etc. Traditionally whenever there is a slowdown in the economy of the Europe and US, outsourcing increases. Trading at about 16X earnings. Strong balance sheet and 4% dividend yield. | 2008-09-26 | ||
| TOP PICK | Digi.com BHD | DIGI MK | 0.010 | (Malaysia exchange.) Cellular-based company. 10% earnings growth. Have huge net cash on the balance sheet and management has said they don't want cash on the balance sheet and it should be returned to shareholders. 6% dividend yield plus a special dividend each year. Expects to continue to get a 10% yield each year. | 2008-09-26 | ||
| HOLD | CLP Holdings | 002-HK | 0.010 | Utilities have been great stocks to hold in this environment. Well positioned in Hong Kong but hard for them to gain any traction in China. A defensive holding to hang onto. As things start to improve and stabilize you will have better prospects elsewhere. Yield of about 4%. | 2008-09-26 | ||
| BUY on WEAKNESS | Hang Lung | 101-HK | 0.010 | (Hong Kong exchange) Property company in Hong Kong. Has been a residential property developer for many years and has been moving into commercial. Have developed a number of class a commercial properties in China. Earnings stream is starting to look quite attractive. Right now attitudes on the property market in Hong Kong are souring quite quickly. Has a little more to run on the downside. | 2008-09-26 | ||
| Comment | China Mobile Hong Kong | CHL-N | 68.820 | Largest cell company in the world. Expect they do pretty well over the next 5 years but competition could get a little tougher as there has been a new restructure of the Chinese telecom industry. Government would like to see a more balanced playing field. | 2008-07-24 | ||
| TOP PICK | iShares Japan | EWJ-N | 12.290 | Japan has been de-rated significantly. Near its 30 year lows. One of the most insulated countries relative to the global shenanigans going on. There is a tremendous amount of money sitting in Japan that is starting to move into the stock market. Attractive valuation and insulation from what is happening in the US and strong exposure to India and China. | 2008-07-24 | ||
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| BUY | Toyota | TM-N | 93.190 | One of the best managed car companies globally. Has come off on the back of the US markets but they will continue to grow their market share around the world. Down to about 10X estimated earnings. Yielding about 3% dividend. | 2008-07-24 | ||
| Comment | Vale S.A. | VALE-N | 27.650 | A lot of resource companies have been getting sold off and is basically just a trade off from the out performers to the under performers. A short-term trend and we should continue to see the longer-term out performance by the materials and energy companies. | 2008-07-24 | ||
| Comment | A Comment -- General Comments From an Expert | A Commentary | 0.020 | US Economy: Seeing decoupling taking place from the rest of the world. Many emerging markets, China particularly, have been accelerating over the last 2 years as the US has slowed. The one area that is not decoupling is the financial market. There will be slower economic growth in the emerging markets. China has dropped from 12% growth down to 10.1%. | 2008-07-24 | ||
| Comment | A Comment -- General Comments From an Expert | A Commentary | 0.020 | Toshiba and Hitachi: Both are very well positioned for the growth and demand for nuclear power going forward. This is a very small part of their business so you won’t get a great bang for your buck. | 2008-07-24 | ||
| Comment | A Comment -- General Comments From an Expert | A Commentary | 0.020 | India: When talking about economies that are going to succeed or fail, this is on the cusp. Had tremendous growth in the past 5 years but started to run into much higher inflationary pressures. Started running into a current account deficit situation. Will require some very tough policy choices for the government, particularly in an election year. Stock market in the last 5 years has been driven by a massive amount of foreign equity inflow, which is now starting to leave. | 2008-07-24 | ||
| Comment | A Comment -- General Comments From an Expert | A Commentary | 0.020 | Extremely positive on the infrastructure building processes taking place globally. He is trying to find more direct plays than this one would give. | 2008-07-24 | ||
| Comment | A Comment -- General Comments From an Expert | A Commentary | 0.020 | Louis Vuitton: Can see luxury goods as a good place to be going forward. Wouldn’t buy it today but expect it will drop in 6 to 9 months. The numbers they are seeing in the growth in China is staggering. | 2008-07-24 | ||
| WAIT | Telefonica S.A. | TEF-N | 76.010 | Credit downturns are hitting certain markets a lot harder than others. Spain has had a tremendous run on the real estate boom and is now seeing the bust on the downside. Have also had some poor numbers. Thinks there will be earnings pressure coming onto it. Wait to see what the earnings look like next week. Cheap. | 2008-07-24 | ||
| Comment | Samsung Electronics | 005930-KS | 0.001 | Samsung has done extremely well over the years in building their brand. Low-cost producer. Over 3 to 5 years, this will be a survivor. There has been a weakness in the flat panel space. Right now, they will not again market share but will not lose any either. | 2008-07-24 | ||
| TOP PICK | iShares Xinhua China 25 ETF | FXI-N | 45.170 | When investing in Asia, you need to take a broad-brush approach. This is an exposure to the top 25Chinese companies including 30% banks, 20% telecom 8% oil/gas and 11% insurance. More exposure to Chinese domestic demand as opposed to exports. Looking at this to go sideways over the next 12 months so buy it for the long-term view. | 2008-07-24 | ||
| TOP PICK | Suntech Power Holdings Co. Ltd. | STP-N | 32.290 | Global energy demand is on a collision course with climate. This is a global leader in solar energy. One of the top 3 producers of solar cells and modules. Low-cost operator. Has its own technology. Trading at 20X earnings and 12X next year’s. | 2008-07-24 |
