Loading...

Four stocks to weather the storm – MoneyWeek

TheurgentneedformorepowerstationscontinuestobenefitInternationalPower(LSE:IPR)。

Itisasset-backed,enjoystremendouscashflows,isattractivelyrated,anditisanobviousbeneficiaryofhigherelectricityprices。

By2010,analystsexpectitsequityfreecash-flowyieldtocomeinat11。

3%,profitsfromoperationsgrowthat8%ayearanddividendpersharegrowthat13%。

FundingforpowerandwaterdesalinationprojectsintheMiddleEast–whereweexpectthelion’sshareofaddedvaluetocomefrom–remainsavailableatlowspreads(i。

e。

it’sinexpensive)andhighgearing。

Aggreko(LSE:AGK),asupplierofmobilepowergenerationtoemergingmarkets,iscontinuingtoimpress。

Themanagementteamexpectsdouble-digitrevenuegrowthovereachofthenextfiveyears。

Thebusinessenjoyshighandgrowingreturnoncapitalemployedat27%andonatradingmarginof22%。

Itscustomerbaseiswelldiversifiedbyproduct–fromutilitiestooilandgas–andgeography。

WhileAggrekohasa32%exposuretotheMiddleEast/Africaregion,itsnextlargestexposureistoNorthAmerica(27%),soitremainsvulnerableintheshorttermtoaslowdown。

However,webelievethatoverallthebusinesshaslimitedexposuretotheeconomiccycle。

Itenjoysfewcrediblecompetitors,hasastrongbalancesheetandremainsunderpinnedbywideningpower-capacityshortfalls。

Wearebuyersonweakness。

WebelieveHSBC(LSE:HSBA)issufficientlycapitalisedanddiversifiedtowithstandthebroaderweaknessinthebankingsector。

Indeed,weaknessprovidesabusinesslikeHSBCwithagreatopportunitytostrengthenitspositionasaprimeconsolidatorinthesector。

Valuationsappearlowandwethinkthereissignificantupsideonalong-termviewtojustifyinvestmentinsuchalow-riskname。

Althoughtheremightbemoreupsideinhighlyleveragedbanks,thereisalsogreaterpotentialforseriousdownsideandpermanentcapitalloss。

Finally,Diageo(LSE:DGE)hasweakenedonconcernsaboutitsexposuretoAmerica,allowingustobuyitonanattractivevaluation。

Thelong-termpremisetothisstoryissimple:peopledrinkduringbothgoodtimesandbad。

Diageoistheworld’sbiggestspiritscompanyandownsmanyoftheworld’smostpopularspiritsbrands。

AnyworriesabouttheUSareoffsetbyagrowingmarketshareintheemergingmarkets。

Forexample,GuinnessisbecomingthebeerofchoiceinAfrica。

Thisisaresilient,repeat-purchasebusinessthatshouldwithstandthebroaderslowdown。

NakedTextNakedText


bckbet官网手机版下载_bck体育客服_bckbet体育官网地址