Overall, it was a solid week for your Global Stock Investor portfolio. Both the Brazilian ETF, iShares MSCI Brazil Index ETF (EWZ), and Canada’s Potash (POT) jumped almost 7% this week, while the rest of your positions ended broadly flat. But before you breathe a sigh of relief, remember that bear markets are particularly treacherous in their see-saw behavior. You can expect sharp sell offs on every bit of bad news, followed by equally sharp gains on “relief rallies.”
Look for Coca-Cola Hellenic Bottling (CCH) to jump today on the back of its Atlanta-based cousin Coca-Cola’s (KO) soaring overseas earnings. You will also be receiving a $2.40 special dividend payout from Millicom (MICC) — a welcome surprise, even as the company announced better-than-expected revenues and subscriber growth. The CurrencyShares Japanese Yen Trust (FXY) is the steadiest of your current picks. Defensive positions like Barrick Gold (ABX) and booming stocks like Potash (POT) look attractive — whether you are bullish or bearish on the market. Gold always is a safe haven. And Potash is a leader in a bullish trend in agriculture that can stand up against the headwinds of uncertainty in global equity markets. The rest of your portfolio is more subject to Mr. Market’s mood swings — but all of our current positions are buys based on the fundamentals.
Barrick Gold (ABX) steadied this week. Citigroup is betting the stock will hit $62; Goldman Sachs is betting $66. Either way, ABX — currently trading around $48 — remains a BUY.
Coca-Cola Hellenic Bottling (CCH) may rally on the back of cousin Coca-Cola’s 79% jump in earnings — thanks to growth in global markets which are CCH’s bread and butter. The stock remains a BUY.
iShares MSCI Brazil Index ETF (EWZ) gained a solid 6.65% this week as global investment sentiment steadied. This is the best of the BRICs and a BUY.
CurrencyShares Japanese Yen Trust (FXY) is your #1 defensive play and it remains a BUY.
ICICI Bank (IBN) steadied this week, after bouncing off its 200-day moving average. This one will soar on any shift toward bullish sentiment in the markets. BUY ICICI Bank.
Millicom International (MICC) reported its Q4 revenues rose to $786 million from $544 million a year ago, topping the $753 million average in the survey of nine analysts. Its total subscriber base grew to 23.4 million, beating analysts’ expectations of 22.3 million. Earnings before interest, tax, depreciation and amortization (EBITDA) were $307 million, up from $229 million a year earlier but below a mean forecast of $328 million in a Reuters survey. Millicom also announced it planned to pay $2.40 per share in a special dividend for the 2007 fiscal year, reflecting the firm’s sale of its stake in Pakistani Paktel Ltd. to China Mobile Communications Corp. for $284 million early last year. Bottom line? Revenues are up better than expected. The number of subscribers is up more than expected. It’s a perfect time to add to your positions. Millicom is a BUY.
ArcelorMittal (MT), the world’s #1 steelmaker, reported that fourth-quarter net income rose 2.7% on 21% higher sales. Earnings reached $2.44 billion from the pro forma $2.37 billion in the year-earlier period. Sales reached $27.99 billion from the pro-forma $23.2 billion. The year 2007 was the first full year during which Arcelor and Mittal operated together. The stock remains a BUY.
Potash (POT) jumped 6.74% this week, as investors realized that the agricultural boom is not going anywhere. This trend has legs and the stock remains a BUY.
Veolia Environnement (VE) climbed back over the $80 level. Veolia Water announced it has won a 500 million euro contract in a consortium with Polish and German partners to upgrade and extend Warsaw’s Czajka wastewater treatment plant. Veolia Water said its share of the contract is worth 148 million euro. The stock has substantial upside and it remains a BUY.