EM Fund Stock Picks & Country Commentaries (May 9, 2023)
Emerging market fund stock picks coming from both US based and international fund managers for this week along with fund stock picks and commentaries for other markets.
Some emerging market fund stock picks coming from both US based (who tend to allow their documentation to quoted from) and international fund managers to highlight for this week (among other EM stocks getting mentions later in this post):
Some updates about key Chinese, Indian, Taiwanese or Korean stocks.
Two Asian industrial stock picks, one who makes industrial robots (a niche that will certainly grow in years to come given labor and skill shortages) and another who makes aerial work platforms. However, both stocks lack an IR page in English, but have some sleek corporate or product videos posted on their Youtube pages. 🤷♂️🤷♂️🤷♂️
Two Asian liquor stock picks who are recognized leaders for particular types of liquor.
A rechargeable battery materials stock with a new plant in SE Asia starting commercial operations in Q2. The new plant has a significant cost advantage versus existing plants.
Three more EV battery players and why its better to own the one that is the parent company of one of the others.
An electronic ink and paper stock pick that will benefit from increasing electronic label penetration.
A Taiwanese restaurant chain that is actually one of my favorite places to eat or snack at when visiting Taiwan (I wish they would expand to SE Asia…) plus another homegrown Taiwan coffee shop and bakery café chain. Both have already expanded into overseas markets.
A Taiwanese fabless application provider founded by semiconductor veterans from Japan and Silicon Valley who recently reported record financials for last year.
A South African investment holding company who liquidated or closed non-core investments and is now focused on a particular sector.
A Greek real estate investment company focused on properties in key sectors of Greece's economy.
A Latin American pulp player who is expanding into higher margin products or markets and comes with plenty of ESG buzz.
One frustration that is not just confined to mainland Chinese stocks (e.g. some Hong Kong, Korean, and Taiwanese stocks also have this problem): There are many potentially great stocks with good business cases (that we will no doubt be hearing more about in the next 10-20 years) who either lack an investor relations page or one that is in English. And sometimes they even lack an English language website.
When some stocks do have an Investor Relations page, they sometimes don’t include any financial statements or earnings releases (or ones that are in English) or on any English IR pages. Of course, financial figures for many emerging market stocks can often be found on websites such as Yahoo! Finance, but it’s just not the same as looking at an earnings release (with commentary) straight from the company itself.
Likewise, the founder of SmartKarma noted in this interview how 90% of investor relation teams do not have their contact details on their own websites:
Other emerging market stocks, often founded by repats or perhaps funded by foreign VCs-PE, will have very slick and separate IR websites in English with extensive documentation and marketing materials. Case in point: South Africa based Famous Brands (see our short tear sheet: Famous Brands (JSE: FBR): Africa's Leading Vertically Integrated Restaurant Operator With Rising Earnings) has an “Our Investment Case” section that succinctly lays out the case in seven headings plus bulletpoints for investing in the Company:
Finally, and in our EM Stock Pick Tear Sheets section, I will start adding paid subscriber only posts about fund stock picks from these “EM Fund Stock Picks & Country Commentaries” posts. These posts will be similar to the free existing threads about individual emerging market stocks.
As with the existing and ongoing free threads in section, they are NOT going to be lengthy deep dives that require 20 minutes of heavy reading to digest. They will provide enough relevant information (in a couple minutes of reading or looking at graphics plus any videos from Youtube) or links to such information to help you decide whether the stock might be a fit for your portfolio.
Any existing and ongoing free stock Threads in the section tend to be emerging market stocks getting some attention e.g. earnings or other recent news/headlines. Or they are just interesting emerging market stock picks I have stumbled upon that are worthy of a closer look by investors.
Substack has also created a post tagging feature and on our front page, I have added links to existing tags on the small but growing library of emerging market stocks in the EM Stock Pick Tear Sheets section:
EM Stock Pick Tear Sheets Region/Country TAGS
EM Stock Pick Tear Sheets Sector TAGS
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.