This week was a particularly strong week for our Global Stock Investor portfolio, as five out of our seven holdings jumped between 5.5% and 8.4%. Those of you who took advantage of the previous week’s sell-off and added to your positions were rewarded handsomely. Make sure you follow the same strategy this week with U.K.-based global retailer Tesco (TSCDY).
I’ve also just completed July’s Global Stock Investor and our featured stock of the month in that newsletter is a red-hot recommendation in a traditional industry that has made billion-dollar fortunes for some of the wealthiest men in history. You definitely will want to read that issue closely when it arrives in the mail.
PORTFOLIO UPDATE
Tesco (TSCDY) suffered its sharpest share price fall in more than four years yesterday after the United Kingdom’s biggest supermarket group reported solid growth in first-quarter sales but below-market forecasts. Shares in Tesco fell almost 4.9%, the company’s biggest one-day fall since April 2003. This is great news! The actual shortfall was minimal and the market’s reaction was way overdone. As the Financial Times put it, "Most companies would love to have Tesco’s trouble." This blip will be long forgotten in a few weeks time. It’s the perfect time to buy Tesco or to add to your existing position. After the sell-off, Tesco is a STRONG BUY.
I hope you followed my recommendation and added to your positions in our two telecom plays, Latin American cell phone giant America Movil (AMX) and Luxembourg-based Millicom International (MICC) after they went "on sale" last week. America Movil jumped 6.9% over the past five trading days and 34.43% since February. Millicom International did even better, soaring 8.4%. Both stocks are STRONG BUYs.
Last week’s sell-off in mining group Anglo American (AAUK) was also the perfect opportunity to enter (or add to) our #1 play on the global commodities supercycle. Anglo American jumped 6.2% over the week, on the back of increased M&A activity in the mining sector. It also remains a STRONG BUY.
Indian banking play ICICI (IBN) rose 6% this week, as its $5 billion public offering — the largest ever by an Indian company — was oversubscribed 2.7 times by foreign institutional investors. In addition, the Indian government gave Singapore’s state-run investment groups the go-ahead to increase their holdings in ICICI Bank beyond the normal regulations that limit foreign investors’ stakes in Indian banks to 10%. The stock is up 17.64% since our initial recommendation and remains a BUY.
The Swedish ETF (EWD) bounced 5.5% last week, as the market found its footing after a recent sell off.
Home Inns & Hotels Management (HMIN) was flat for the week and remains a HOLD.
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!
