Given the potential risks, choosing where to invest globally can be difficult, writes, Nicolas Johnson, of The Globe and Mail, who offers seven to consider for the coming year.
Many investment advisors suggest diversifying globally, but with potential risks for Canadians looking abroad, the choice can be a tough one. Here are seven stock and fund picks by asset managers and analysts for 2014.
There are a couple of reasons money managers often advise Canadian investors to overcome their home-country bias and to put part of their assets abroad. One goal is to get a chance at higher returns by investing in expanding businesses or industries that are absent from our own stock exchanges. Canada's stock market represents only about 3.4% of the world's $62-trillion (US) in publicly traded companies. A second goal is to diversify wealth and reduce the vulnerability of one's portfolio to a collapse in the Canadian market.
Whether buying securities at home or abroad, investors need to do their homework beforehand, analyzing how a potential trade fits their overall strategy. Taxation is generally more favorable for domestic investments than foreign ones, and investing overseas adds currency-exchange risk. Plus, there's the chance that Canadian investments will soar, while overseas prices sink.
5 Best Blue Chip Stocks To Watch For 2015: STMicroelectronics N.V.(STM)
STMicroelectronics N.V., an independent semiconductor company, engages in the design, development, manufacture, and marketing of a range of semiconductor integrated circuits and discrete devices. Its products include discrete and standard commodity components, application-specific integrated circuits, custom devices and semi-custom devices, and application-specific standard products for analog, digital, and mixed-signal applications. The company also offers subsystems and modules for the telecommunications, automotive, and industrial markets comprising mobile phone accessories, battery chargers, ISDN power supplies, and in-vehicle equipment for electronic toll payment, as well as provides Smartcard products. Its products are used in various microelectronic applications consisting of automotive products, computer peripherals, telecommunications systems, consumer products, industrial automation, and control systems. The company sells its products through distributors and ret ailers. STMicroelectronics N.V. was founded in 1987 and is headquartered in Geneva, Switzerland.
Advisors' Opinion:- [By Evan Niu, CFA]
STMicroelectronics (NYSE: STM ) and OmniVision (NASDAQ: OVTI ) are the two camera suppliers, and HTC is reportedly no longer considered a "tier one" manufacturer so it doesn't get priority any more. That implies that one of these image sensor specialists was giving HTC the cold shoulder in favor of bigger names.
- [By John Udovich]
If you are looking for a semiconductor stock that�� focus on an area that�� not so cyclical, mid cap microcontroller (MCU) stock Atmel Corporation (NASDAQ: ATML) could be a good choice���meaning its worth taking a closer look at the stock along with other�microcontroller�players like Microchip Technology Inc (NASDAQ: MCHP), STMicroelectronics N.V. (NYSE: STM) and Cypress Semiconductor Corporation (NASDAQ: CY). Microcontrollers are programmable and�embedded�chips that are increasingly�hidden inside a all sorts of products these days e.g. if you have an appliance�with a�LED or LCD screen and a keypad, it contains some kind of�microcontroller plus all new�automobiles contain at least one�and often several. I should mention that we have also recently added Atmel Corporation to our SmallCap Network Elite Opportunity (SCN EO) portfolio and we are down about 5.6% mostly due to the recent market volatility.
- [By Lee Jackson]
STMicroelectronics NV (NYSE: STM) supplies most set-top box chips for Scientific�Atlanta, and also sells chips for disk drives that end up in DVRs; but still has less than a 10% exposure. The consensus target for the stock is $11. Investors do receive an outstanding 4.0% dividend from the company.
- [By Tyler Laundon]
Analog Devices (ADI) is one of the largest semiconductor companies in the motion-sensing space, with a market cap of $15.87 billion. STM Electronics (STM) is a slightly smaller manufacturer; its market cap is $7.6 billion.
Top 5 Canadian Companies To Buy Right Now: CenturyLink Inc.(CTL)
CenturyLink, Inc., together with its subsidiaries, operates as an integrated communications company. The company provides a range of communications services, including voice, Internet, data, and video services in the continental United States. Its services include local exchange and long distance voice telephone services, as well as enhanced voice services, such as call forwarding, caller identification, conference calling, voicemail, selective call ringing, and call waiting; wholesale local network access services; and data services, including high-speed Internet access services, data transmission services over special circuits and private lines, and switched digital television services, as well as special access and private line services. The company also offers fiber transport, competitive local exchange carrier, security monitoring, and other communications, as well as professional and business information services. In addition, it provides other related services, such as leasing, selling, installing, and maintaining customer premise telecommunications equipment and wiring; payphone services; and network database services, as well as participates in the publication of local telephone directories. Further, the company offers printing, direct mail services, and cable television services; and wireless broadband Internet access services and satellite television services. As of December 31, 2010, it operated approximately 6.5 million telephone access lines. CenturyLink, Inc was founded in 1968 and is based in Monroe, Louisiana.
Advisors' Opinion:- [By Brian Nichols]
Rackspace Hosting Inc. (NYSE: RAX ) takeover talks are heating up as analysts believe that CenturyLink (NYSE: CTL ) has a high probability of making a bid. While this might make sense as a way to better compete against companies like Amazon.com (NASDAQ: AMZN ) , is this really in the best interest of shareholders?
- [By Rick Munarriz]
Finally, we have CenturyLink� (NYSE: CTL ) coming through with encouraging bottom-line results. Its adjusted profit of $0.76 a share was ahead of the $0.68 a share it posted a year earlier. The pros were targeting flat earnings growth.
Top 5 Canadian Companies To Buy Right Now: CF Industries Holdings Inc. (CF)
CF Industries Holdings, Inc., through its subsidiary, CF Industries, Inc., manufactures and distributes nitrogen and phosphate fertilizer products, serving agricultural and industrial customers worldwide. It operates in two segments, Nitrogen and Phosphate. The Nitrogen segment principally offers ammonia, granular urea, urea ammonium nitrate solution, urea liquor, diesel exhaust fluid, and aqua ammonia. The Phosphate segment primarily offers diammonium phosphate and monoammonium phosphate. The company also owns 50% interests in the GrowHow UK Limited, a nitrogen products producer in the United Kingdom; Point Lisas Nitrogen Limited, an ammonia producer; and KEYTRADE AG, a global fertilizer trading company. CF Industries Holdings� customers include cooperatives and independent fertilizer distributors primarily in the midwestern United States. The company was founded in 1946 and is headquartered in Deerfield, Illinois.
Advisors' Opinion:- [By Roberto Pedone]
CF Industries (CF) is a manufacturer and distributor of nitrogen and phosphate fertilizer products in North America. This stock closed up 11.7% at $202.32 in Monday's trading session.
Monday's Volume: 5.65 million
Three-Month Average Volume: 899,814
Volume % Change: 484%Shares of CF soared higher on Monday after billionaire Dan Loeb's Third Point Management revealed a position in the firm in its quarterly investment letter. Loeb told investors the company trades at an unwarranted discount to its peers and that it expects management to deliver a much larger dividend to shareholders.
From a technical perspective, CF soared higher here back above both its 50-day at $184.76 and its 200-day at $198.52 with monster upside volume. This move pushed shares of CF into breakout territory, since the stock took out some key overhead resistance levels at $187.60 to $191.52 and then above $196.25 to $196.97. Shares of CF are now quickly moving within range of triggering another major breakout trade. That trade will hit if CF manages to take out some past overhead resistance at $208.17 with high volume.
Traders should now look for long-biased trades in CF as long as it's trending above its 200-day at $198.52 or above $197 and then once it sustains a move or close above Monday's high of $202.77 to $208.17 with volume that hits near or above 899,814 shares. If that breakout triggers soon, then CF will set up to re-test or possibly take out its next major overhead resistance levels at $220 to $225.
Keep in mind that CF is set to report earnings on Aug. 6 after the market close. Look to play that breakout before and then after earnings, once you know that the stock is reacting positively to the numbers.
- [By Alex Planes]
Fool contributor GC Mays notes that nitrogen-focused fertilizer producer CF Industries (NYSE: CF ) followed PotashCorp and Mosaic's (NYSE: MOS ) lead by posting lower revenues and earnings on declining prices and volume, which stemmed from a huge decline in corn prices. However, CF Industries has agreed to a deal with Mosaic under which it will supply 600,000 to 800,000 tons of ammonia annually for up to 15 years, which could undermine PotashCorp's already weakened position. In an effort to diversify from its hard-hit potash business with more profitable, Mosaic also recently purchased CF Industries' phosphate business for $1.4 billion. These consolidative moves by two major competitors could bode ill for PotashCorp, which may need to find a partner as well.
- [By Sara Murphy]
CF Industries (NYSE: CF ) gets a little closer to stating a risk in its 2012 10-K:�"Other geopolitical factors like temporary disruptions in fertilizer trade related to government intervention or changes in the buying/selling patterns of key consuming/exporting countries such as China, India and Brazil, among others, often play a major role in shaping near-term market fundamentals."�
- [By Garrett Cook]
In trading on Tuesday, basic materials shares were relative leaders, up on the day by about 0.02 percent. Top gainers in the sector included AuRico Gold (NYSE: AUQ), up 4.9 percent, and CF Industries Holdings (NYSE: CF), up 6.5 percent.
Top 5 Canadian Companies To Buy Right Now: Mobile TeleSystems (MBT)
Mobile TeleSystems OJSC, together with its subsidiaries, provides telecommunications services primarily in the Russian Federation, Ukraine, Uzbekistan, Armenia, and Belarus. The company provides a range of mobile and fixed line voice and data telecommunications services, including transmission, broadband, pay-TV, and various value-added services; and sells equipment and accessories. It also offers network access services, including mobile cellular voice and data communication services; automatic roaming services; GPRS and Internet access services; and 3G technology. In addition, the company�s services include the design, construction, and installation of local voice and data networks capable of interconnecting with fixed line operators; installation and maintenance of cellular payphones; lease of digital communication channels; and provision of access to open computer databases and data networks, including the Internet, as well as video conferencing, and fixed, local, and long-distance telecommunications services. Its value-added services comprise call divert/forwarding, caller ID and anti-caller ID display, conference calling, WiFi, GPRS, intelligent call assistant, APN remote access point, fixed mobile convergence, enhanced data rates for GSM Evolution, call barring, SMS, mobile office, voicemail, mobile banking, wireless application protocol, MTS-Connect, SIM-browser, point-to-point transfer, unstructured supplementary services data, downlink packet access, mobile TV, call waiting, MMS, ring tones, missed call alert, itemization of monthly bills, information and directory, international access, WEB and WAP portal, customer care system, ring back tone, collect call, and location-based services. As of December 31, 2011, the company had a mobile subscriber base of approximately 101.14 million. It has a strategic partnership with Vodafone. The company was founded in 1993 and is headquartered in Moscow, the Russian Federation.
Advisors' Opinion:- [By Jake L'Ecuyer]
Telecommunications services sector was the leading decliner in the US market today. Telecommunications services stocks dropped 0.43% in today's trading. Among the stocks, Mobile Telesystems OJSC (NYSE: MBT) was down more than 4.8%, while Telecom Argentina SA (NYSE: TEO) tumbled around 2.5%.
- [By gurujx]
Mobile Telesystems OJSC (MBT) Reached $13.06
The prices of Mobile Telesystems OJSC (MBT) shares have declined to $13.06, which is 46.0% off the 3-year high of $24.06.
- [By Dan Radovsky]
VimpleCom, a joint venture of Norwegian telecom Telnor and the Russian Alfa Group, operates under the BeeLine brand in Russia. BeeLine has joined the two other ex-iPhone carrying Russian heavyweight mobile carriers, Megafon and Mobile TeleSystems (NYSE: MBT ) , and not renewed its iPhone contract with Apple.
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