Monday, January 18, 2010
Ten German Blue Chips
The DAX index of Germany is comprised of the 30 largest German publicly listed blue-chip companies with the highest revenues. One of the ETFs that tracks this index is ETFlab DAX. The top 10 holdings in this fund are listed below together with their ADR ticker and dividend yield:1. Siemens(SI)
Current Dividend Yield: 2.52%
2. Bayer AG(OTC: BAYRY)
Current Dividend Yield: 2.47%
3. Allianz
4. BASF SE(OTC: BASFY)
Current Dividend Yield: 4.34%
5. Daimler (DAI)
Current Dividend Yield: 1.50%
6. Detsche Bank AG(DB)
Current Dividend Yield: 0.99%
7. Deutsche Telekom(DT)
Current Dividend Yield: 7.19%
8. SAP AG(SAP)
Current Dividend Yield: 1.39%
9. RWE AG(OTC: RWEOY)
Current Dividend Yield: 5.96%
10. E.ON AG(OTC: EONGY)
Current Dividend Yield: 4.99%
EON and RWE are two of the large utilities in Germany offering excellent dividend yields.
Sunday, January 10, 2010
Six ADRs with the Largest Market Cap Gains in 2009
Last month I wrote an article titled Five Companies with the Largest Market Cap Gains in this Decade. Three of the companies in that list were BHP Billiton, Vale and Petrobras.In the Year-End Review of Markets & Finance, The Wall Street Journal listed the biggest gainers in market value in 2009. Only stocks which had a market value of at least $5B at the start of the year were considered in this ranking.
The six ADRs with the largest market cap gains in 2009 were:
1. Petrobras (PBR)
Change in Market Cap = $114.92B
2. BHP Billiton(BHP, BBL)
Change in Market Cap = $85.65B
3. Rio Tinto (RTP)
Change in Market Cap = $84.40B
4. Vale(VALE)
Change in Market Cap = $84.34B
5. HSBC Holdings (HBC)
Change in Market Cap = $83.07B
6. Banco Santander (STD)
Change in Market Cap = $61.85B
As noted above, BHP Billiton, Vale and Petrobras appeared in the top market cap gainers in the last decade also. Out of the 10 market cap gainers in 2009, six were foreign companies.
Are Canadian Energy Stocks a Good Buy Now?
Crude oil futures closed at $82.75 per barrel on the New York Mercantile Exchange last Friday. Energy prices have been rising in recent weeks due to the perception that global economy is in recovery mode and that the demand from China and other emerging markets is picking up.It must noted that despite the rise in gas prices at the pump in the U.S., demand is still flat to down as people are driving less. Just last week the labor department reported that 15.3 million Americans are unemployed. Unemployment is expected to remain high thru the rest of this year. While it is true that China surpassed U.S. last year as the world's largest market for cars, it is still arguable if the rise in crude oil prices is really due to the demand for crude oil led by China. Last year 10.3 million passenger cars were sold in China due to various government incentive programs that benefited car buyers.
Given the context above, is it a good time to invest in Canadian energy companies?
Canada is one of the most important sources for US energy imports. In fact, most of Canada's electricity, oil and natural gas exports go the U.S. and Canada is also consistently the top supplier of oil to the US. Close proximity to the U.S. and a stable political system are two distinct advantages that Canada has over other crude oil suppliers to the US. The EIA projected that Canada may produce 3.48 million bbl/d this year in the Short-Term Energy Outlook report published in July, 2009.
From the EIA site:
"Large oil producers in the country include Imperial Oil, EnCana, Talisman Energy, Suncor, EOG Resources, Husky Energy, and Apache Canada. In 2009, Suncor and Petro-Canada announced that they would merge, creating the largest oil producer in the country, as well as one of the largest producers of natural gas."
Some of the Canadian energy companies are Encana(ECA), Suncor Energy(SU), Canadian Natural Resources Ltd(CNQ), Imperial Oil Ltd (IMO), Talisman Energy Inc(TLM) and Nexen Inc(NXY). Enbridge(ENB) and TransCanada(TRP) are major pipeline operators. Imperial Oil is the subsidiary of the U.S. oil giant ExxonMobil.
In summary, since over 99% of oil Canadian exports go the U.S., it is obvious that Canadian oil export growth is closely tied to the health of the US economy. As most economists have projected a jobless recovery this year, investors can wait for a better opportunity to get into Canadian energy stocks.
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