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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ronsjigslures123

If you just a working person like i was for years, i figured the safest investment for me was to invest in money, and programs that say they will pay you this much IF in the fine print everything goes right. I lived to long and know that nothing goes right all the time when it comes to a very long investment. To many crooks out there grabbing all the can and doing it Legally. So i bought money and so far its paid off and will pay off big time for me in the next couple years. No more razzle dazzle paper work that most don,t understand, and the hidden fees and fees, a simple solution I buy it sell it when i feel the price is good and reap my OWN profit that i can hold in my hand as cash. Be your own bank. controll your own money you will do better, in the long run.

October 28 2010 at 9:39 PM Report abuse +2 rate up rate down Reply
ronsjigslures123

In December of 1909 early 2010 i bought a few hundread Canada Maple Leaf one oz. cpins that are 99.98 pure silver ans placed them in a several large safty deposit boxes. I paid $17.20 PER COIN, i cashed in my 401k plan and bought the coins from that, i took a penalty hit on the 401K but not any where near the loss my co workers are taking now. With all the hiden fees the 401k writers were taken out of my money i said enough is enough, so i drew it out and bought the coins from the Country of Canada. Today EACH coin i could sell for $26.30 each coin, its almost half of my original price of the coins as a profit. I will not sell now because they will reach 45 to 55 and its possible to hit even high as 80 bucks each coin bucks each coin in a short while. My profit will enable me to retire with some good money in hand, better than if i let the 401k crooks pay me little by little out of my own money, and i will have my retirement in one LUMP SUM, not in payments with them taking money out to handle my own money. BE your own bank, screw all these people dipping there hands into your money you worked hard for. Small working investors can invest and make money even today, if they just get rid of all the people collecting fees of your cash. Do reserch and check out 90% silver coins before 1960 USA and some forien coins also, they can sill be had for a good price if bought in troy oz. pound pound bags..that 90% silver will go up 7 times your investment in a couple years.

October 28 2010 at 9:22 PM Report abuse +1 rate up rate down Reply
standfordgrays

Fuqi Intl..... Chinese Jeweler

October 28 2010 at 7:53 PM Report abuse rate up rate down Reply
dterraman

invest in food

October 28 2010 at 7:21 PM Report abuse +1 rate up rate down Reply