A Strong Quarter For The Global Bull

Nicholas Vardy

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

Today’s portfolio is widely diversified across a wide range of investment ideas and it is well set for big profits as we enter the second half of the trading year. This week, we will be tightening stops on some of our existing holdings — and we also will be making a new option recommendation on Korean steelmaker, Posco (PKX).

BRAZILIAN ETF (EWZ)

Brazil held up surprisingly well in last week’s sell-off — a testament to the new-found resilience of this former BRIC laggard. The ETF is up just under 5% since we recommended it two weeks ago. Raise your stop to $54.50.

COMPANHIA VALE DO RIO DOCE CVRD (RIO)

George Soros’ favorite stock is up a solid 12.67% since April 9. RIO has benefited from a combination of both the commodities boom, specifically demand for iron ore from China, as well as the strong performance of its domestic market, Brazil. This stock remains one of the top global plays on the commodities super cycle.

FRENCH ETF (EWQ)

Prime Minister Sarkozy’s ruling political party received a mandate from voters in last week’s parliamentary elections to continue its historic, market-oriented reforms. We expect this positive result to help kick start the French ETF once global markets regain their footing.

LAN AIRLINES (LFL)

Airline traffic for this Chile-based South American carrier increased 29.9% in May from last year, while capacity rose 24.1%. May’s load factor — the percentage of LAN’s available seats filled with passengers — rose three percentage points to 68.7%. All of these developments are terrific news for LAN. The stock is up a solid 3.37% over the past three weeks. Raise your stop to $74.00.

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NATIONAL BANK OF GREECE (NBG)

National Bank of Greece has been a surprising disappointment so far. After all, its first-quarter net profit rocketed up 52% on strong loan growth and the consolidation of its recent Turkish acquisition. Our disappointment is somewhat moderated by the fact that the company did declare a dividend of 26 cents per share in June to give us the equivalent of a 2.3% yield. With the stock extremely oversold from a technical standpoint, let’s look for a bounce and move our stop to $10.45.

NEXTEL HOLDING (NIHD)

Nextel Holdings, our U.S.-based Latin American cell phone play, is up a solid 9% since we first recommended it. This marks the first year the company is set to generate strong free cash flow growth from its business. With the global cell phone megatrend one of my favorite investment themes, my end of the year target price on this stock is $100.

POTASH (POT)

Potash’s stock has been on fire and the stock is up over 12% since May 21. That’s an annualized gain of 228%. Potash is my #1 play on the recent run-up in the price of agricultural commodities. Potash’s CEO expects big things for the company, and we expect the same. Let’s tighten our stop to $66.40.

POSCO (PKX)

Korea-based steelmaker Posco has ridden the bullish wave of the steel sector and a strong Korean stock market. Even after its sharp correction over the past five trading days, the stock still is up over 22% since our initial recommendation. We’ve already booked triple-digit percentage profits on the options. Now is a perfect time to get back into the options by buying the November $125 calls (PKXKE.X).

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TEREX (TEX)

The markets rendered a split decision on our global infrastructure play in its first week in our portfolio. The stock was down 2.92%, but the options were up 6.25%. Look for Terex to recover strongly with the markets. Raise your stop to $74.50.

P.S. Join me at the 29th Annual Money Show in San Francisco
I 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 #007384), or visit: The Money Show San Francisco’s Home Page. You’ll also want to hear me speak at FreedomFest, scheduled for July 5-7 in Las Vegas. To sign up, call Tami Holland at 866.266.5101 or register online.

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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).

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