Nicholas Vardy

Nicholas Vardy has a unique background that has proven his knack for making money in different markets around the world.

Our Global Stock Investor portfolio consolidated over the last week as we head into the traditionally quiet summer months. As I noted in last week’s update, global markets also need to digest their strong gains of recent weeks.

The biggest danger I see to global markets is contagion from a collapsing Chinese stock market. Efforts by Chinese authorities to cool the nation’s stock market frenzy could begin to have a ripple effect in other markets. Even though a collapse of a purely domestic market like Shanghai should only impact local investors, negative sentiment could spread like wildfire across other global markets — as it did on Feb. 27th. Our strategy in this case is clear: we ride out the storm, but stick to our stops.


Anglo-American (AAUK), our latest pick, was flat for the week. The consensus in London — where the bulk of Anglo-American’s shares are traded — is that share prices of mining stocks have only just started to reflect the strength of underlying metal prices. Last week, Merrill Lynch also put out a note where it increased its forecasts for platinum group metals. This is bullish news for Anglo-American’s share price and the stock remains a STRONG BUY.

"Imitation is the sincerest form of flattery." And our emerging markets telecom plays America Movil (AMX) and Millicom International (MICC) are certainly attracting their share of imitators.

Consider the case of U.K.-based Vodafone, the world’s largest wireless services provider. Vodafone’s growth from European operations in 2007 was only 1.4% — lackluster at best. The only bright spot in Vodafone’s portfolio were emerging markets like Eastern Europe, Africa, and Asia where revenues grew by 14.9%. Trouble is, Vodafone is late to the party — and its efforts in these markets have often been awkward and unwieldy. America Movil and Millicom International are both savvy players and long-time veterans in emerging markets — and profiting handsomely. Both also remain STRONG BUYS at current levels.

Home Inns & Hotels Management (HMIN) continues its vertigo-inducing ride. China’s benchmark stock index plunged 6.5% on Wednesday, after Beijing tripled the stamp duty tax on share transactions. The Shanghai Composite Index dropped as much as 7.4% before ending down 6.5% at 4,053.01, its lowest level since May 21. The Shanghai and Shenzhen 300 index, which covers both markets, fell 6.8% to 3,859.9. Trading was heavy, with the combined turnover on the two exchanges reaching a record $53 billion. Although Home Inns trades in the United States, it will be inevitably affected by turmoil in China. With the stock so near our current stop price, and the growing jitters in the Chinese market, Home Inns remains a HOLD.

Global retailer Tesco (TSCDY) introduced a special bonus scheme to reward Sir Terry Leahy, its chief executive, if he manages to pull off the launch of the Fresh & Easy convenience chain in the United States. This shows Tesco’s unusually strong commitment to the success of its U.S. expansion. Please note that because of the way Tesco is now traded in the United States, you may not be able to place a stop loss on the stock through your online broker. That means our stop of $22.50 has to be a mental one. I will, of course, keep you apprised of any sudden changes in Tesco’s stock price. Tesco remains a strong BUY.

The Swedish ETF (EWD) and India’s "Citibank" ICICI (IBN) were flat on the week and both remain BUYs.

P.S. Join me at the 29th Annual Money Show in San Francisco
I personally invite you to sign up for this year’s Money Show, July 26-28, 2007, at the San Francisco Marriott located in the heart of the city’s picturesque downtown. Join over 50 of the country’s premier policy analysts, advisors, and money managers who will share their best strategies for taking advantage of economic, political, and market opportunities to grow your investment assets. You can choose from over 150 educational workshops and 15 panel presentations. The show also features a state-of-the-art exhibit hall with more than 125 of the finest financial companies in the country displaying their cutting edge products and services. For complete details or to register for free admission, call 800.970.4355 (be sure to mention priority code #008564), or visit: The Money Show San Francisco’s Home Page to register today!

share on:

Like This Article?
Now Get Our FREE Special Report:
Alternative Investing: Investing in Timber

Stock Investor editor Paul Dykewicz reveals why investing in timber may be one of the best long-term portfolio strategies you'll find today.

Get Access to the Report, 100% FREE

share on:


Dr. Mark Skousen

Named one of the "Top 20 Living Economists," Dr. Skousen is a professional economist, investment expert, university professor, and author of more than 25 books.

Product Details

  • Forecasts & Strategies
  • Home Run Trader
  • Fast Money Alert
  • Five Star Trader
  • TNT Trader

Bryan Perry

A former Wall Street financial advisor with three decades' experience, Bryan Perry focuses his efforts on high-yield income investing and quick-hitting options plays.

Product Details

  • Cash Machine
  • Premium Income PRO (exclusively for subscribers of Cash Machine)
  • Quick Income Trader
  • Breakout Options Alert
  • Hi-Tech Trader

Jim Woods

Jim Woods has over 20 years of experience in the markets from working as a stockbroker,
financial journalist, and money manager. As well as a book author and regular contributor to
numerous investment websites, Jim is the editor of:

Product Details

  • Successful Investing
  • High Velocity Options
  • Intelligence Report
  • Bullseye Stock Trader
  • Eagle Eye Opener

Bob Carlson

Bob Carlson provides independent, objective research covering all the financial issues of retirement and retirement planning. In addition, Bob serves as Chairman of the Board of Trustees of the Fairfax County (VA) Employees’ Retirement System, which has over $2.8 billion in assets.

Product Details

  • Retirement Watch
  • Retirement Watch Spotlight Series
  • Lifetime Retirement Protection Program

Jon Johnson

Jon Johnson's philosophy in investing and trading is to take what the market gives you regardless if that is to the upside or downside. For the past 21 years, Jon has helped thousands of clients gain success in the financial markets through his newsletters and education services:

Product Details

  • Investment House Daily
  • Stock of the Week
  • Technical Traders Alert
  • Rapid Profits Stock Trader

Used by financial advisors and individual investors all over the world, is the premier provider and one-stop shop for dividend information and research.

Product Details

Popular tools include our proprietary Dividend Calendar, Dividend Calculator, Dividend Score Card, and many more.

  • Dividend Investor

George Gilder

George Gilder is the most knowledgeable man in America when it comes to the future of technology and its impact on our lives.  He’s an established investor, bestselling author, and economist with an uncanny ability to foresee how new breakthroughs will play out, years in advance.

Product Details

  • Technology Report
  • Technology Report PRO
  • Moonshots
  • Private Reserve
  • Millionaire Circle


DayTradeSPY was founded by head trader Hugh Grossman, a retired internal auditor for a Fortune 500 company. After years of first-hand experience trying out one trading strategy after another, Hugh instead developed his own trading system centered around day trading SPY options. That’s it... Nothing else.

Product Details

  • Trading Room
  • Pick of the Day
  • Inner Circle
  • Online Workshops