Drummond Brodeur

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.

(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.

(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.

(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.

(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.

(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.

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.

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.

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.

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.

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%.

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.

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.

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.

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.