You are now logged out.
A New Swiss Franc Play
The ADR Alert
Tuesday, April 27, 2004
By Alexander Green, Investment Director
Email – #9
** A New Swiss Franc Play
Late last week Turkcell (NYSE: TKC) reported final results for
2003. And, just as we expected, they were exceptional.
Turkcell’s net income soared 357%, to $215 million.
In this instance, however, it didn’t matter. Turkcell is involved
in two legal cases, one with the state landline company Turk
Telecom and the other with the Turkish Treasury. As a result of
these cases, CEO Muzaffer Akpinar opined that “our future results
may be materially, adversely affected.”
Shareholders voted with their feet. And our sell stop was
triggered at $29.
Perhaps Shakespeare said it best: “First, kill all the lawyers.”
Fortunately, we have a new international stock with no such legal
problems. And a whole lot of capital gains potential, both with
the stock and the underlying currency.
The company, formerly known as Asea Brown Boveri, is ABB, Inc.
(NYSE: ABB). Based in Switzerland, ABB is a world leader in power
and automation technologies, particularly power transmission
systems, electric motors and industrial robots that enable utility
and heavy industry customers to improve performance and lower
environmental impact.
The company operates in more than 100 countries and employs over
115,000 people. And business is booming.
Less than two months ago, ABB won a $43 million contract to secure
the power supply in Mexico, to avoid blackouts.
A month ago, ABB signed a contract worth $110 million to supply
electrical power and automation systems for nine cruise vessels.
Customers included Norwegian Cruise Lines, Royal Caribbean Cruises
and French maritime operator Groupe Bourbon.
Two days later ABB announced it had won a $40 million order to
rehabilitate a vital link in the Romanian national power grid.
ABB also just signed a $30 million contract with the Dubai
Electricity and Water Authority to help deliver electrical power
to two man-made islands dubbed “the eighth wonder of the world.”
(The artificial islands, visible from space, will be made of 100
million cubic meters of rock and sand, and increase Dubai’s
shoreline by 120 kilometers.)
ABB has just finished two years of restructuring, cutting staff,
selling off non-key assets and paying down debt.
In anticipation of sharply higher earnings, ABB shares have
already doubled over the past year. And yet the shares still
trade in the $6 range. (Most Swiss stocks sell for several
thousand dollars per share.) I believe there is plenty of upside
ahead.
Of course, the stock is also denominated in Swiss francs, one of
the world’s strongest currencies. That means we’ll benefit from
any appreciation of the franc against the dollar, as well as the
stock itself.
***Action to Take***
Buy ABB Ltd (NYSE: ABB) at $6.50 or better. And place a sell stop
at $5.25 for protection. There are no options on this one for
speculators to consider.
If you have any questions, feel free to call one of our VIP
Trading Services representatives at 888.570.9830 (toll free) or
410.223.2679 (e-mail: viptrader@oxfordclub.com), or contact Pillar
One Partner Greg Galloway at 800.438.3040 or 407.667.4729.
———————————————————-
Stock: ABB Ltd. (NYSE: ABB)
Country: Switzerland
Current Price: New
Comment: Buy at $6.50 or better. Place a sell stop at $5.25.
Stock: ICICI Bank (NYSE: IBN)
Country: India
Current Price: $16.17
Comment: Buy. Sell stop is $13.00.
Stock: Turkcell (NYSE: TKC)
Country: Turkey
Current Price: Sell
Comment: Stock hit trailing stop.
Stock: Nam Tai Elec. (NYSE: NTE)
Country: Hong Kong
Current Price: $22.82
Comment: Buy. Sell stop is $21.00.
Stock: PetroKazakhstan (NYSE: PKZ)
Country: Canada
Current Price: $28.83
Comment: Buy. Sell stop is $24.00.
Stock: Qiagen (Nasdaq: QGENF)
Country: Netherlands
Current Price: $12.28
Comment: Buy. Sell stop is $11.00.
———————————————————-
Bio:
Alexander Green is the Investment Director of The Oxford
Club. A Wall Street veteran, he has over 16 years
experience as a research analyst, investment advisor, and
professional portfolio manager. Mr. Green is also
considered one of the most talented financial writers in
the business. He’s been featured on “The O’Reilly Factor,”
profiled by Forbes and Marketwatch.com, and has written for
Louis Rukeyser and several other leading financial
publications. He currently writes and directs The Oxford
Club Communiqué, the Oxford Insight e-letter, and four
elite trading services: one focused on momentum stocks,
another focused on companies with significant insider
buying, another dedicated to international growth stocks
and another focused on short-selling fundamentally flawed
companies. Mr. Green is also a top-rated speaker at
financial conferences around the country.
———————————————————-
Copyright – 2004 The Oxford Club, LLC. The Oxford Club does
not act as an investment advisor or advocate the purchase or
sale of any security or investment. The Oxford Club expressly
forbids its writers from having a financial interest in any
security recommended to its readers. All Agora employees
and agents must wait 24 hours after an Internet publication
prior to following an initial recommendation. And for
hard-copy-only publications, 72 hours after the publication
is mailed. Investments recommended in this letter should be
made only after consulting with your investment advisor and
only after reviewing the prospectus or financial statements
of the company. The Oxford Club provides its members with
unique opportunities to build and protect wealth, globally,
under all market conditions. The executive staff, research
department and editors who contribute to The Club’s
recommendations are proud of the reputation The Oxford Club
has built since its inception in 1984. We believe the
advice presented to its members in our published resources
and at our meetings and seminars is the best and most
useful available to global investors today. The
recommendations and analysis presented to members is for
the exclusive use of members. Copying or disseminating any
information published by The Oxford Club, electronic or
otherwise is strictly prohibited. Members should be aware
that investment markets have inherent risks and there can
be no guarantee of future profits. Likewise, past
performance does not assure future results. Recommendations
are subject to change at any time.
Investor Bulletin
