Tony Sagami: Where’s Waldo? I have no idea, but I just landed in Manila to do some research, and I have my eye on a couple of Filipino stocks that look ripe for some big gains.
Why the Philippines? Most investors don’t even include this Southeast Asian nation on their radar screen.
That’s why I enjoy making these trips. I get to experience a new culture, see its economy in action, and talk to local experts and consumers. This gives me a solid idea about a country’s health and, in turn, the investments that can benefit from it.
The best part of my adventures is uncovering relatively inexpensive stocks with potentially big upside, and being able to share them with you in this column. And so today, I want to give you two ways you could profit from my most-recent trip …
Cheap + Growth = Home Run Potential!
While the pundits and Wall Street experts debate the state of the U.S. economy, the Philippines is growing like mad.
In 2013, its GDP grew by an impressive 7.2%, faster than all the BRICS countries outside of China.
The Philippines’ key asset is a well-educated, English-speaking workforce — making it the top destination to outsource business-processing functions such as call centers.
One of the issues for investors is that only ONE Philippine stock traded in the U.S., Philippines Long Distance Telephone (PHI).
However, there is an ETF, the iShares MSCI Philippines (NYSEARCA:EPHE), worth your consideration.
The top holdings include several stocks that trade on the U.S. Over The Counter Market, including Ayala Land (AYAAF), Universal Robina (UVRBY), BDO Unibank (BDOUF), SM Investments (SVTMF, JG Summit Holdings (JGSMY), Ayala Corporation (AYALY), Aboitiz Equity Ventures (ABTZY), SM Prime Holdings (SPHXF), and Jollibee Foods (JBFCY) — aka, the McDonald’s of the Philippines.
Philippines Long Distance Telephone is also in this ETF’s mix.