By Steve Halpern, The Money Show Digest
Templeton Global Group
Chief Investment Officer Jeffrey Everett sees opportunity in the global drug sector. He notes, "We are not scared away from the drug stocks. Indeed, wherever there is controversy, you'll find Templeton." His top global drug stock picks are Sanofi-Aventis /zigman2/quotes/201967021/composite SNY +1.02% in France; GlaxoSmithKline /zigman2/quotes/209463850/composite GSK +2.42% in the U.K.; and Bristol-Myers Squibb /zigman2/quotes/202559280/composite BMY +1.46% in the U.S. "We see great profitability and great margins, and extraordinarily strong balance sheets, while others are focusing on fears," Jeffrey says. Those fears, he believes, are already priced into the stocks.
The Global Investor
Adrian Day, editor of The Global Investor, specializes in natural resources. He suggests Vista Gold /zigman2/quotes/205547892/composite VGZ +6.19% , with operations from Canada to Bolivia. According to Day, the firm's strategy is to accumulate resources in the ground at low-cost, but deliberately not develop them. With its ten properties, he looks at Vista as "a permanent option on gold prices." Among silver stocks, his favorite is Silver Standard , with operations in Australia and South America. "Silver Standard tends to be the most sensitive to silver of all the silver stocks," Adrian says. "When silver goes down, so does SSRI. But when silver goes up, Silver Standard has tremendous upside leverage."
"By 2008, there will be more infrastructure built in China than anyplace in the history of the world," says Toby Smith, editor of ChangeWave Investing. He calls it the "Marshall Plan times ten." With the resulting imbalance in supply and demand, Toby likes Southern Peru , a copper company. Not surprisingly, he adds, "China is the main buyer of Peruvian copper." The company also pays a 7.2 percent dividend. He's also a buyer of Fording Canadian Coal Trust /zigman2/quotes/217737721/composite FDG -2.11% , which owns the largest metallurgical coal mine in Canada, shipping its coal to Japan and China. He looks for the annual dividend, now about $4.50, to rise to $12 or more over the next 12 months.
Forbes/Lehmann Income Report
Richard Lehmann, editor of the Forbes/Lehmann Income Report, also suggests a Canadian trust, Petrofund Energy /zigman2/quotes/201908458/composite PTF -1.38% . He notes, "The fund is paying double digit, monthly payments." He also looks for strong capital gains, as recent changes in Canadian law now allow U.S. pension funds to invest in this sector. In addition,
Doug Fabian also suggests investing in Canada -- the country. "Investors should increase their exposure to investments outside of the U.S. dollar," says Doug. "And the one country that I really like is Canada." He notes that the country is "knee-deep" in natural resources." He views the exchange-traded fund, iShares MSCI Canadian Index /zigman2/quotes/205348859/composite EWC +0.95% as an easy way to take advantage of these trends.
The Global Mutual Fund Letter
Finally, Eric Roseman offers one of the most emphatic recommendations I encountered at the Money Show. "Eagle SoGen Global Fund /zigman2/quotes/209317528/realtime SGENX +0.38% (which is set to close to new investors at the end of this month) is without a doubt the best performing risk-adjusted global fund on this planet since 1979," he says. Potential investors should note, however, that lead manager Jean Eveillard retired in December and was replaced by his 15-year apprentice, Charles de Vaulx. But, "I believe we won't see any major changes, as de Vaulx has been managing most of the portfolio for the last five years," says Eric. "This fund, which hasn't had a losing year in 15 years, should be the first stop for all global investors -- end of story."
Steven Halpern is the editor of The Money Show Digest.com, a free, weekly e-letter that features the latest advice from the financial newsletter community. Halpern has no positions in any of the stocks or funds mentioned in this report. (TheMoneyShowDigest.com)
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