Panel Picks: Cars and Drugs

11/28/2003 12:00 am EST


"International companies account for more than 45% of all market capitalization in the world," notes Tracey Longo in Financial Advisor  magazine, reporting on The Financial Advisor Symposium. Here are some of the top stock picks from the panel on international investing.

‘The story for international investing is as strong and deep as it’s ever been,’ maintains Giulio Martini, co-manager of the AllianceBernstein International Value Fund. Martini, who spoke on the ‘Rethinking International Investing’ panel at The 6th Annual Financial Advisor Symposium in Chicago. Today, he likes non-US auto and auto parts companies, pharmaceuticals, and telecom. The Swedish auto airbag manufacturer Autoliv (ALV NYSE) was a good buy for the fund, providing 50% returns in the past two years. Martini also likes Honda (HMC NASDAQ), Nissan (NSANY NASDAQ), Volkswagen (VLKOF NASDAQ), and auto parts companies such as Canada-based Magna International (MGA NYSE). The fund has also bought pharmaceuticals in the past year including GlaxoSmithKline (GSK NYSE) and France’s Aventis (AVE NYSE).

"Raymond Mills, another panelist and the manager of the T. Rowe Price International Growth and Income Fund, agrees that some investors can benefit from adding a range of styles, including growth, value, emerging markets, and small cap to their international portfolios. While steering clear of many Japanese stocks, Mills does like Toyota (TM NYSE). 'They are one of the more profitable companies in the country, and they continue to take market share in Europe and the US. To a large extent, the company is also immunizing its revenues against swings in the yen by putting more production in the US. Mills also gives the thumbs up to French drug company Sanofi-Synthelabo (SNY NYSE), which he says has more than 50 compounds in clinical trials but, despite its size and growth potential, is reasonably valued."

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