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No. of Recommendations: 1
KitKat - Thanks for the ideas. I'm actually somewhat familiar with two of your ideas (one being the various Canadian Oil Sands companies. I think these are great to buy when price of oil is low, great to sell when price is high, as they are simple to understand business models that are very leveraged to the price of oil).

On Tesco - I have tracked grocers for a long time, and this tracking has included the Fresh and Easy story. This is the most disastrous and arrogantly executed large-scale launch I have ever observed in the Grocery industry (complete with wildly inaccurate reporting on their progress to their investors and the public). I am very familiar with many details of what went wrong. What that implies about Tesco is that they are a company that has just entered the "arrogant" part of the corporate life cycle and are are poised to begin a slow decline. If you want to see the gory details of Fresh and Easy, look to information central on this debacle:

http://www.perishablepundit.com/index.php?hot=tesco

That being said - I truly appreciate you volunteering some ideas and may take a look at Smith & Nephew.

Thanks!
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One more thought - there's certain fantastic businesses I know about in U.S. whose counterparts I would love to identify abroad. Things like:

Auto parts retailers (Autozone, O'Reilly in U.S.)
Options-based homebuilders (NVR in the U.S.)
Awesomely run grocers (WFMI, I wish Aldi's/Trader Joe's was public!!)

Etc.
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No. of Recommendations: 1
There is a Swiss elevator company, Schindler, that might be worth a look. The business model is razor/razor blade as they make most of their money from long-term maintenance contracts. Toyota Industries is a value play whereby you get an investment portfolio including the world's best car company that could equal the stock price plus a bunch of other businesses for "free". Nestle fits the "obvious" category but probably is never very cheap. Tom Russo was quoted as follows: "No one ever said global investing would be easy - fun, yes: easy, no." Have fun!
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I've been developing a process recently to point me in the direction of likely candidates for further study. Right now, it would point me to the following (I have done no due diligence):

NOK Nokia Corporation (ADR) Finland 1003 - Communications Equipment
YZC Yanzhou coal mining Co. (ADR) China 0603 - Coal
CHT Chunghwa Telecom Co., Ltd. (AD Taiwan 0915 - Communications Services
CAJ Canon Inc. (ADR) Japan 1015 - Computer Peripherals
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No. of Recommendations: 7
Options-based homebuilders (NVR in the U.S.)
Awesomely run grocers (WFMI, I wish Aldi's/Trader Joe's was public!!)


A couple ideas in those categories here in Brazil:

Gafisa: (GFA) - Zell is all over this. It is up 4 or five times off the March lows, but isn't everything in Brazil?. Lot's of government incentives in Brazil to build, and once a company in Brazil gets to a certain size the "system" (the Man, whatever you want to call it) is very conducive to oligopolies or outright monopolies. Takes something incredibly stupid - like Sadia (SDA) and its dollar hedges - to blow up, and even in Sadia's case the government gave them a nice put and married them off to form Brazilian Foods.

I don't think Gafisa is options-based, but one thing that might interest you is that these builders down here rarely if ever build on spec, so they don't swim in a heavy neblina of commercial loans during construction. People pay upfront for their homes and apartments, often waiting 5 years for the thing to be built before moving in. Builders, engineers and construction companies have it good down here because they can take as long as they want to build something and they often do.

Compania Brasileira de Distribuição (CBD) - Brazil's largest grocery store with Sendas and Pão de Açucar being their main brands. They just took over Ponto Frio, which sells Electronics and Fridges and stuff like that. They have great properties in Rio and São Paulo, basically to the point where they can offer a terrible shopping experience, but the places are jam-packed because that's where people gotta shop. Well positioned company and solid management.

Hopefully Bovespa and Nasdaq arrangement opens things up for easier access to more Brazilian companies. Natura, for instance, is worth a look once it is tradable on Nasdaq (though I am weary of direct sales companies once they reach a certain age)

Maybe those two companies I mentioned will help you get a start...

G
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Oops, forgot about the large-cap thing.

Maybe CBD sneaks in, but Gafisa is pretty small..

G
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Thanks all for the ideas (including the one I got via private e-mail). I have some things to take a look at next week, that's for sure.
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No. of Recommendations: 1
Tesco was supposed to give WFMI a run with its Fresh and Easy expansion. So far its a flop but it is the biggest grocery chain in Britain and may gain traction here. They are not giving up

Schlumberger is one of the best run and biggest oil services businesses

Smith &Nephew one of the five orthopedic transplant makers. Also has a premier wound care division. recent misstep in an acquisition hurt them. Usually trade at a premium

Canadian Natural Resources sitting on billions of barrels of oil sands. Also has light sweet and some off shore fields. Some natural gas. Pure play E&P with no refinery business or retail to drag them down
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No. of Recommendations: 1
KitKat - Thanks for the ideas. I'm actually somewhat familiar with two of your ideas (one being the various Canadian Oil Sands companies. I think these are great to buy when price of oil is low, great to sell when price is high, as they are simple to understand business models that are very leveraged to the price of oil).

On Tesco - I have tracked grocers for a long time, and this tracking has included the Fresh and Easy story. This is the most disastrous and arrogantly executed large-scale launch I have ever observed in the Grocery industry (complete with wildly inaccurate reporting on their progress to their investors and the public). I am very familiar with many details of what went wrong. What that implies about Tesco is that they are a company that has just entered the "arrogant" part of the corporate life cycle and are are poised to begin a slow decline. If you want to see the gory details of Fresh and Easy, look to information central on this debacle:

http://www.perishablepundit.com/index.php?hot=tesco

That being said - I truly appreciate you volunteering some ideas and may take a look at Smith & Nephew.

Thanks!
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No. of Recommendations: 0
Diageo (DEO) P/E 15, ROE 48%

Mettler-Toledo P/E 18, ROE 31%

jkm929
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No. of Recommendations: 30
Here are some of the more interesting international names I've come across over the years:

1.) Airports: I know ASR (Cancun) the best, but there are a handful of others globally that are easy to find and look up. An airport is just about the best franchise imaginable, due to huge barriers to entry, and most publicly-traded airports operate under a "dual till" revenue model whereby they earn regulated ROEs on their aircraft operations but unlimited ROEs on their other services, like parking, food concessions, etc. Public companies include Shanghai, Beijing, Copenhagen, four or five Mexican airports, Macquarie Airports, Auckland, and a few others I'm probably forgetting. Many of these stocks have high dividend yields.

2.) Sociedad Quimica y Minerologica de Chile (SQM): A Chilean potassium fertilizer and iodine miner that also owns the world's largest reserves of lithium carbonate available for purchase on public markets. As transportation moves from liquid fuels to electricity, lithium production will be going way up. SQM is not cheap today but it's worth getting to know since they are sitting on one of the planet's most geo-politically important assets -- equivalent to or better than the position of any oil sands player -- and eventually their assets will be priced to reflect their true value as swing producers of a hugely valuable commodity. Much of that production, however, will have to be developed in the future.

3.) CRISIL: The S&P/Moody's of India, without the legacy of bad structured finance decisions.

4.) Areva: The French nuclear power plant builder and operator. They face limited competition and virtually unlimited demand over the next few decades.

5.) Iberdrola/Gamesa/Vestas/Suzlon: Builders/operators of wind power globally. Gamesa and Iberdrola are Spanish while Vestas is Danish and Suzlon is Indian. Together with GE, these companies are the global wind industry.

6.) Rolls Royce: Part of a global oligopoly in the aircraft engines business. Orders are down these days for obvious reasons, but in the long run the industry is close to the beginning of a 15 year replacement cycle that should be great for earnings. Notably, the company has a razor/blade business model, similar to Schindler. And, like Schindler, their main competition is a unit of United Technologies.

7.) Nobel Biocare: The world leader in dental implants. Like all medical device companies, they are wildly profitable (80% GM, 40% ROE). Obvious demographic tailwinds.

8.) Stock exchanges: Singapore, Toronto, London, Deutsche Borse and a ton of other stock exchanges are publicly traded. Rapid international consolidation was interrupted last year but is likely to resume soon.

9.) Autoliv: World leader in automotive safety equipment. The company was, until last year, an active repurchaser of their own stock. Not only that, but they list buybacks by date, volume and price on their web site in a timely manner.

10.) Seadrill: A leading deepwater driller, controlled by John Fredriksen (net worth in 2007: $11 billion). Brazil alone could probably hire the entire world's fleet of deepwater drill ships to develop the Santos Basin, so day rates will stay strong for a long time. Upside from Fredriksen's deal making, like the recent maneuvers in Smedvig.

Best,
ClientNine
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ClientNine - wow that is one awesome list, only a small portion of which I already know about. What do I owe you? :-)

Joe
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My candidate is Sasol (SSL)

They are based in South Africa and have some political risk.
Revenues are in Rand, so there may be some upside if the dollar
declines. The interesting part is their coal-to-liquids technology
that can convert coal into diesel and jet fuel. They are the world
leader in this and are building plants in China. They pay a nice
dividend and are volatile enough that you can pick them up at a
reasonable price fairly often.

Chris - long SSL
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No. of Recommendations: 1
VALE, Vale do Rio Doce. Largest iron ore producer in world. Based in Brazil. Strong balance sheet. Stock price was hammered over last year but has rebounded some. IMO, still good value.
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Admiral Group is a UK and European seller of online car insurance, sort of like Geico, and in part the model for Esurance in the US.

Orkla (Norway) and Kinnevik (Sweden) are conglomerates and both have good cash-flow businesses--groceries and wood pulp--that support more speculative ventures.
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Also Stockmann which is the best department store in Finland, probably unassailable brand there, expanding in the Baltic region with both dept. stores and stores for womens' clothing.
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No. of Recommendations: 3
Here are a few solid ones to whet your appetite:

UK: SABMiller : SBMRY.PK: #2 beer brewer, very strong in emerging markets
Switzerland: Novartis : NVS: Best pharma pipeline, balanced portfolio
China: China National Offshore Oil Corporation: CEO: Toll collector on offshore exploration
India: HDFC Bank: HDB : Arguably one of Asia's best run banks
Japan: Fast Retailing: FRCOY.PK : Pioneering cheap chic


You can check out full details here, with a no-obligations 30 day free trial of Motley Fool Global Gains, which offers a broad spectrum of countries / market caps/ sectors to pick from:
http://newsletters.fool.com/25/index.aspx
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