The emerging market story may seem like a stock-picking theme of yesteryear, but there are still ways for investors to profit; at least according to Duff Daniels of WCM Capital management.
Daniels is looking to capitalize on the emerging middle class in the Emerging Market nations. While he concedes it's "not a new idea" he says there are still plenty of ways to play America's exportation of our vices. Three names in particular strike his fancy:
Arcos Dorados (ARCO): For those with my inability to speak any foreign language whatsoever Arcos Dorados is Spanish for Golden Arches. Not shockingly the Argentina-based company is a franchisee of McDonald's (MCD) in South America, though it's the Brazilian growth that intrigues Daniels.
"There are three stores per million people in Brazil versus 45 (McDonald's) per million people in the U.S.," notes Daniels ominously. Increase that saturation to 10 - 15 million Micky-D's per Brazilian, and Arcos has plenty of room to grow.
Novo Nordisk (NVO): Denmark-based Novo Nordisk is the world's number one supplier of insulin. Not only is fast food like McDonald's making the world a heavier place, but the U.S. is exporting less healthy aspects of our lifestyle, including obesity which can contribute to Type II diabetes as well as other ailments.
The 88 year-old company has operations all over the world and a widely diversified of range of products, not to mention a decent dividend.
Potash (POT): Remember Potash and other fertilizer plays that were darlings of the global growth mania of the late aughts? They're back and none have made a better recovery than POT. While the stock is still off its 2008 highs, the company is a direct beneficiary of rising populations and demands for protein rich diets.
There's a "finite or even declining level of arable land, farmable land globally," notes Daniels. The only way to handle this scarcity is to increase yield per acre. Among other things that means improving the quality of the soil, a concept right in Potash's wheelhouse.
There are three names to play global growth, none of them reliant on the ebbs and flows of European banking or Chinese GDP. Do you believe these are safe havens ideas or already past their prime? Let us know in the space below or send me a Tweet @Jeffmacke.
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