IBM and US Multinationals
Today, IBM released good earnings, same for INTC, DD, JNJ, MCD, KO, WMT, etc. In fact most of the large US Multi's with significant int'l exposure (except the banks and GE) seem to be doing very well, gaining around 10-20% since the Jan lows. So as we hypothesized last fall, these companies are benefiting from the weaker US$.
I don't think it's too late to get into these names, and in fact I am thinking of a couple of laggards in this category, BA and MSFT. Anyways, I'm open to any of these fine companies, including GE.
BTW, is POT ever going to stop going up? I haven't seen anything like this since the dot.com bubble!
posted by Junk Bonds @ 4/16/2008 11:08:00 PM
1 Comments:
I still agree with the general thesis but how do we decide on which one?
Do we go with the laggards as I'm often doing? Or do we go with the momentum like WMT? I'm a bit loathe to buy into a retailer, albeit a low end retailer due to the US recession.
All the other names have strong brand recognition. Do we know how much of their recent strength has been due to strong business fundamentals vs. a falling $US?
W.r.t POT, this has been a beta error for me. I've been meaning to post about its metrics for some time but never seemed to get around to it. Meanwhile I've watched this go ever higher for around six months!(even though its gone up for 5 years!)
China I think is again to blame for this rise in potash prices. I don't know if they fear food riots or mass starvation, but China has been following a policy of securing resources worldwide be it oil, minerals, or fertilizer. As commodities are priced on the margin, the Chinese have shown a willingness to pay higher prices in order to secure future supplies.
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