She likes this bank. One of the best performers in 2016, and expects the same for 2017. Benefiting from better commodity prices and a more stable government. Banks benefit very much from a normalizing economy and interest rates that are no longer out of control.
Will Canada have to rejig how it gets foreign produce that comes through a US warehouse first? Mexico is going to be tough to call. For goods coming from other countries, such as China, she is confident that Canada can form its own bilateral trade agreements.
Will Canada have to rejig how it gets foreign produce that comes through a US warehouse first? Mexico is going to be tough to call. For goods coming from other countries, such as China, she is confident that Canada can form its own bilateral trade agreements.
A bank to play foreign markets? Bank of Nova Scotia (BNS-T) always has the biggest presence in Latin America. A bank that she likes this year, which is extremely, extremely inexpensive, loan growth is starting to recover and has an extremely strong capital ratio, is the Russian bank Sberbank (SBRCY-5). (See Top Picks.)
A bank to play foreign markets? Bank of Nova Scotia (BNS-T) always has the biggest presence in Latin America. A bank that she likes this year, which is extremely, extremely inexpensive, loan growth is starting to recover and has an extremely strong capital ratio, is the Russian bank Sberbank (SBRCY-5). (See Top Picks.)
(A Top Pick Sept 30/16. Down 12%.) In Korea, they are home care and personal care. The growth is really in their cosmetics. In Canada they have the Face Shop stores, where they sell Korean cosmetics. The core business domestically is great and stable, but the growth in China is very strong. Chinese women are just starting to spend on cosmetics and facial care, and they love Korean brands. However, in Q2 South Korea deployed a terminal high altitude defence missile, and because of that the relationships with China has really become quite strained and are discouraging tourism to South Korea. This is still a great company.
(A Top Pick Sept 30/16. Down 12%.) In Korea, they are home care and personal care. The growth is really in their cosmetics. In Canada they have the Face Shop stores, where they sell Korean cosmetics. The core business domestically is great and stable, but the growth in China is very strong. Chinese women are just starting to spend on cosmetics and facial care, and they love Korean brands. However, in Q2 South Korea deployed a terminal high altitude defence missile, and because of that the relationships with China has really become quite strained and are discouraging tourism to South Korea. This is still a great company.
(A Top Pick Sept 30/16. Down 8.73%.) One of the large Asian insurers. The main reason it was bit with a bit of selloff since the US election, is that AIA was a really good defensive holding. Post election there was a big rotation from defensive plays to more cyclicals. This is a great, great insurer.
(A Top Pick Sept 30/16. Down 8.73%.) One of the large Asian insurers. The main reason it was bit with a bit of selloff since the US election, is that AIA was a really good defensive holding. Post election there was a big rotation from defensive plays to more cyclicals. This is a great, great insurer.
(A Top Pick Sept 30/16. Down 5.04%.) A South African company, but think of it as a technology private equity business. The biggest value in their NAV is the Chinese tech company Tencent (TCEHY-5). However, they own a lot of little companies in India and the middle east.
(A Top Pick Sept 30/16. Down 5.04%.) A South African company, but think of it as a technology private equity business. The biggest value in their NAV is the Chinese tech company Tencent (TCEHY-5). However, they own a lot of little companies in India and the middle east.
Turkey? An interesting situation. When investing in a country, typically the bottom up fundamental company situation represents 75% of her decision, and the top-down macro is 30%. This country is the one exception where she is not comfortable with the political situation. She is essentially zero weight here, even though there are 34 businesses that she really likes. This country is linked to commodities, so there will probably be a tailwind in the rally they have seen.
Turkey? An interesting situation. When investing in a country, typically the bottom up fundamental company situation represents 75% of her decision, and the top-down macro is 30%. This country is the one exception where she is not comfortable with the political situation. She is essentially zero weight here, even though there are 34 businesses that she really likes. This country is linked to commodities, so there will probably be a tailwind in the rally they have seen.
She used to own this, but exited because of their loan book, especially corporate loans. Over the last 2-3 quarters, they are starting to get a lot more colour on some of the issues within the loan book. On the last quarter, there were even more issues coming out. If you have done well with the stock, she would consider switching to another name.
She used to own this, but exited because of their loan book, especially corporate loans. Over the last 2-3 quarters, they are starting to get a lot more colour on some of the issues within the loan book. On the last quarter, there were even more issues coming out. If you have done well with the stock, she would consider switching to another name.
An e-commerce pure play in India or this ETF? In India, there isn’t really a publicly listed company. There is a company called Flipkart that is essentially the Amazon of India. It is private and has a lot of notable investors globally. That segment of the commerce is growing very quickly, but it is still not profitable. There is a lot of subsidizing of their delivery costs and it is very competitive on pricing. It’s a little early days, and she would rather go to this indirectly. (See Top Picks.)
An e-commerce pure play in India or this ETF? In India, there isn’t really a publicly listed company. There is a company called Flipkart that is essentially the Amazon of India. It is private and has a lot of notable investors globally. That segment of the commerce is growing very quickly, but it is still not profitable. There is a lot of subsidizing of their delivery costs and it is very competitive on pricing. It’s a little early days, and she would rather go to this indirectly. (See Top Picks.)
Cellular growth in emerging markets? One company that stands out really well is Samsung Electronics (005930-KS). They tend to have a broader range of products, and more affordable. Gionee (?) in China is still private, but at some point it could be an interesting one. Very much affordable.
Cellular growth in emerging markets? One company that stands out really well is Samsung Electronics (005930-KS). They tend to have a broader range of products, and more affordable. Gionee (?) in China is still private, but at some point it could be an interesting one. Very much affordable.
A Philippine stock? The biggest challenge with the Philippines is that it is expensive, because it has been a very robust and defensive growth market in the last few years. One stock she would look at would be Ayala Land. Basically a real estate developer with a very big land bank. Management is very disciplined. They have done a fantastic job of monetizing that land bank. That consistency and discipline has resulted in the best return on equity for developments in the sector. Not cheap on a PE basis, trading at around 20X, but with these companies you need to look at it more on the land value.
A Philippine stock? The biggest challenge with the Philippines is that it is expensive, because it has been a very robust and defensive growth market in the last few years. One stock she would look at would be Ayala Land. Basically a real estate developer with a very big land bank. Management is very disciplined. They have done a fantastic job of monetizing that land bank. That consistency and discipline has resulted in the best return on equity for developments in the sector. Not cheap on a PE basis, trading at around 20X, but with these companies you need to look at it more on the land value.
She really likes this and it is one of her top holdings. The TD Bank of Peru. Peru is extremely under-banked, and one of the most under-banked in the Latin American region. Management team is phenomenal. She is very optimistic on the outlook for Peru. Even when it was so difficult in Peru in 2015 and early 2016, this bank generated ROE of 20%.
She really likes this and it is one of her top holdings. The TD Bank of Peru. Peru is extremely under-banked, and one of the most under-banked in the Latin American region. Management team is phenomenal. She is very optimistic on the outlook for Peru. Even when it was so difficult in Peru in 2015 and early 2016, this bank generated ROE of 20%.
An ETF in Asia? In terms of growth outlook, the part of Asia she really likes is India. She also likes Indonesia. The problem is that dividend yields are very low because they are so high growth countries. The one exception where the dividend yields are said to be higher, is Thailand, where there just happens to be a dividend yield culture. It is actually quite common to find companies that are growing fast and still pay you a 4%-5% dividend. China is the only other place because it is more mature.
An ETF in Asia? In terms of growth outlook, the part of Asia she really likes is India. She also likes Indonesia. The problem is that dividend yields are very low because they are so high growth countries. The one exception where the dividend yields are said to be higher, is Thailand, where there just happens to be a dividend yield culture. It is actually quite common to find companies that are growing fast and still pay you a 4%-5% dividend. China is the only other place because it is more mature.
Basically a mobile gaming company in China. Over the years they have built the valuable real estate on their smart phone into a lot of ancillary revenues. However, their core is still gaming. The power of this company’s platform is how they can really use that single piece of real estate and bring content through it. Recently signed a partnership with the NHL to bring it to China, so you can imagine what the potential will be. Another example of how they are able to leverage global content and bring it to a big domestic market is that they acquired a US company called Riot Games, the developer of League of Legends and created their own version called Honour of Kings. Within 11 months, they had 50 million users.
Basically a mobile gaming company in China. Over the years they have built the valuable real estate on their smart phone into a lot of ancillary revenues. However, their core is still gaming. The power of this company’s platform is how they can really use that single piece of real estate and bring content through it. Recently signed a partnership with the NHL to bring it to China, so you can imagine what the potential will be. Another example of how they are able to leverage global content and bring it to a big domestic market is that they acquired a US company called Riot Games, the developer of League of Legends and created their own version called Honour of Kings. Within 11 months, they had 50 million users.
She likes IT outsourcing. There are 3 of them including TCS Consulting (TCS-T), Cognizant (CTSH-Q) and this one. She doesn’t currently own Infosys or Cognizant because of Trump. There is chatter around the H1B Visa, which typically affects any skilled worker, especially in the Tech sector. She is a little concerned what effect this might have on the business model. Also, even before Trump, there had been a decline in their revenue backlog. The stock is not cheap enough for her to get involved yet.
She likes IT outsourcing. There are 3 of them including TCS Consulting (TCS-T), Cognizant (CTSH-Q) and this one. She doesn’t currently own Infosys or Cognizant because of Trump. There is chatter around the H1B Visa, which typically affects any skilled worker, especially in the Tech sector. She is a little concerned what effect this might have on the business model. Also, even before Trump, there had been a decline in their revenue backlog. The stock is not cheap enough for her to get involved yet.
She likes this bank. One of the best performers in 2016, and expects the same for 2017. Benefiting from better commodity prices and a more stable government. Banks benefit very much from a normalizing economy and interest rates that are no longer out of control.