international stocksWith all the projections that the U.S. will experience a low-growth economic environment over the next year, investors may want to look to faster-growing international economies for investments that can yield better returns.

For those willing to take the risk of investing in individual stocks, independent research firm Value Investment Principals has identified what it considers some of the best global "deep value" stocks positioned for significant growth over the next year.

Value Investment Principals' CEO Sandy Mehta says his firm focuses its research on companies that are positioned in growth markets that are trading at cheaper prices than traditional value stocks. The Hong Kong-based firm sells its research to institutional investors and major corporations.

Deep Value Growth Companies

"Typically our stocks have high single-digit or double-digit dividend yields, PE (price-to-earnings) ratios of five or less and the companies have lots of cash assets," says Mehta, who formerly managed a $200 million Asian hedge fund. "The companies that we recommend are actually growth companies trading at deep value multiples."

Mehta recommends Enerplus Resources Fund (ERF), which, through its subsidiaries, engages in the acquisition and operations of Canadian oil and gas. Although the company's price-to-free-cash-flow ratio of 11.1 is higher than what his company normally uses for a guide, Mehta says Enerplus is still a bargain since it is trading near its lows for the past five years and is positioned to ride the energy sector's expected growth over the next five years. The company pays a generous 9% dividend and has sizable assets that make it a solid choice.

"This is one of the highest dividend yielding energy stocks anywhere in the world," says Mehta. "It's got 12 years of oil and gas reserves and it also has another 22 years of contingent or possible reserves."

On Wednesday, shares of Enerplus closed at $26.88, up about 19% year-to-date.

Most Profitable Company on the Planet

Mehta also recommends Gazprom (OGZPY), the Russian natural gas producer. Gazprom is not only the number one producer of gas in the world, but is also the most profitable company on the planet, hauling in more than $30 billion in profits this year alone. The company has so much cash that on Wednesday its board announced that it would increase the company's maximum level of dividend payouts from 30% to 35% (dividends can now range from 17.5% to 35%).

Mehta says that even with this level of profit, the $120 billion company is still trading at a P/E multiple of about 4.0. Although the company has had a bit of a down year, growth next year is likely because energy prices are trending upward. "Gazprom produces 17% of the world's gas and has 90 years of reserves," says Mehta.

On Wednesday, shares of Gazprom, which trades on the Pink Sheets, closed at $21.89, down 12.5% year-to-date.

Number One Maker of Diesel Engines in China

Another deep-value global company that Mehta likes is China Yuchai (CYD), a manufacturer of diesel engines for trucks and buses. Mehta says Yuchai should grow between 15% and 20% next year because it is the number-one maker of diesel engines in China, with a 22% market share in an industry that is rapidly expanding. The company has solid management and about 40% of the company's assets are in cash. Adjusted for the cash, Yuchai's P/E of 6.7 times falls to 4.0.

Mehta also says Yuchai has key agreements with other companies that will fuel future growth, including joint ventures with Caterpillar (CAT), Geely International (GELYY), the Chinese company that bought Volvo, and Chery, another large Chinese automaker.

On Wednesday, shares of China Yuchai closed at $25.59, up 73.4% so far this year.

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Fuqi Intl..... Chinese Jeweler

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