In this episode of Buy Hold Sell, we look at stocks that generate their earnings offshore. These earnings have been squeezed as the local currency rallied 10% against the greenback. We ask two fund managers if they think this shift presents an opportunity to pick up quality business at lower prices.
Panel: Matthew Kidman from Centennial Funds is joined by Ben Rundle from NAOS, and Sam Granger from Totus Capital.
- Boral: Capital intensive, High PE, Headwaters give good exposure to infrastructure but stock is expensive.
- James Hardie: Peers in US have reported strongly, and James Hardie has been taking market share. However also has had operational issues, and management turnover.
- Ansell: High ROE, good track record, buyback is coming.
- Each of the panelists puts forward their top pick for exposure to offshore earnings.
You can access more great market insights from Ben Rundle as his disscusses What to do if your holding gets crushed this reporting season and Five Market Darlings with nosebleed valuations.