EM Fund Stock Picks & Country Commentaries (March 7, 2023)
A variety of EM fund stock picks from East/North and Southeast Asia, Eastern Europe and Latin America are in focus along with fund stock picks and commentaries for other emerging or frontier markets.
A variety of EM fund stock picks from East/North and Southeast Asia, Eastern Europe and Latin America are in focus this week with some highlights being:
An Asian restaurant chain stock pick who has created their own restaurant brands (versus franchising foreign ones) who has the potential of becoming a national champion (or the next Jollibee).
Some Korean EV battery players who underperformed at the start of the year for a January EM Fund factsheet appear to have since reversed course on their most recent technical charts.
Taiwan and the semiconductor or chip sector is more than just Taiwan Semiconductor Manufacturing Company (TSCM).
A couple of airport operator or airline stock picks who’s share prices are still benefiting from pint up travel demand.
A Latin American beverage stock pick that has performed well thanks to market share gains and local currency strength.
A Latin American vehicle and equipment rental stock pick with growth and earnings potential.
Several software or IT Services related stock picks either completely based in emerging markets, or with founders from EM countries (where most of their employees and delivery centers are located) but who have their headquarters and most of their customers in developed countries (USA, EU, etc.). Some of these stocks tend to be Eastern European as the region produces great IT staff.
Not all tech stocks have been victims of the recent bloodbath in US tech stocks where layoffs continue to mount.
However, one comment about tech stocks based in or with a significant operational presence in Eastern Europe: Even if you only consume Western mainstream media, you should have noticed the recent and subtle shift in narrative about the on-the-ground military situation in Ukraine. At some point, these on-the-ground military realities may get reflected in the performance of Eastern European stock markets and stocks or companies that have a big presence there - including software or IT Services firms with big delivery centers in the region.
Finally, a slight change in format for these stock pick posts:
It has come to my attention from reading the fine print on some fund (usually institutional funds from certain large fund managers) documentation or fund letters that absolutely NOTHING can be directly quoted from this documentation (and the documents cannot even be linked to without their permission). In such cases, the fund names themselves will NOT be mentioned in posts; but I will still write about stock picks that have been gleaned from reading the documentation from such funds.
I have noticed how some funds completely remove old factsheets or commentaries from their websites and appear to have no archive section for these (as they just keep replacing the document under the link with a new document for the new period).
To be EXTRA mindful of issues like this, the fund documentation will serve as a starting point for writing about their emerging or frontier market stock picks (I could always be reached on LinkedIn etc to do a private research project for any reader interested in what such funds are doing). This will make posts more focused, the writing easier for me (and hopefully for you to read) given how documentation tends to become available at all different times for a given period, and more informative for readers.
The posts may contain Finvix or other stock charts, links to outside research I have come across as I become familiar with popular fund EM stock picks, screenshots of homepages, relevant videos, etc.
Starting with this post, stock names will also have linked tickers to Finviz, Google Finance, the London Stock Exchange, Investing.com, etc. or wherever quotes can be found depending on the exchanges they trade or have listings on (I will probably go through old posts to add tickers next to any stock names in them as well).
As stated in my disclaimers, nothing in these posts constitutes investment advice (or for that matter, stock or fund promotion). If you are interested in any fund or fund manager mentioned, you will need to go directly to the fund’s website or other sources to determine your eligibility to invest or whether its a suitable investment for your portfolio.
Disclaimer. The information and views contained on this website and newsletter is provided for informational purposes only and does not constitute investment advice and/or a recommendation. Your use of any content is entirely at your own risk and it is your sole responsibility to evaluate the accuracy, completeness and usefulness of the content. Seek a duly licensed professional for any investment advice. I may have positions in the investments covered. This is not a recommendation to buy or sell any investment mentioned.
For a further disclaimer and an explanation of the reasoning behind these posts: DISCLAIMER: EM Fund Stock Picks & Country Commentaries Posts.
Note: Where possible, company links are to their respective investor relations or corporate pages. Region and country links are to our ADR or ETF pages where there are further country specific resources (e.g. links to local stock markets and media websites). Please report any bad links in the comments section.
Asia
East Asia
China
The January Factsheet for the Mobius Investment Trust PLC (LON: MMIT) briefly noted Hong Kong-based health care chain EC Healthcare (HKG: 2138 / FRA: 1UM0) (+1.3%) being a good contributor (no doubt do to borders reopening). However, shares are now heading in the other direction as things return to normal:
