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RDM Financial Group CEO Ron Weiner on the companies that potentially gain the most from emerging market growth.
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-- there's a merchant opportunity.
In emerging markets but that's a broad statement mean -- it when people come on I like emerging markets where.
Lot of countries out there but.
Which stock -- names are poised to really benefit.
From that emerging market strength apple Colgate Procter gamble all -- emerging markets for their strong growth in the last quarter but.
Is the key emerging markets stock picking in your stomach and the strength of your stomach lining -- -- CEO -- financial.
And he's got a tough got he's here with this favorite emerging market plays he's one of our favorites here to to see you.
When you here's say for example that a Procter & Gamble or an apple says emerging markets are great for us I think can't just say that it's like throwing a -- a darts at the globe.
We're the strongest area.
-- well first thought you can't stop human nature.
United States is 70% developing markets the 7%.
Consumer driven emerging markets -- less than thirty.
They're gonna head to seven.
It's just gonna happen.
People want to eat better they want to have better houses that -- -- better and smarter phones so it's going to happen four picks here that we're gonna talk about I guess.
I think.
Apple certainly being one album but Nestle's largest food company in the world in 200527%.
Of their profits came from emerging markets today it's 52%.
Okay so what is wrong telling you -- -- -- names some of these stocks and he just said nicely which is definitely one of them.
And you're talking about names that while some of them may actually be based in Europe such as honestly in Switzerland.
But getting their business from -- -- doing gang -- business elsewhere talk about mostly because this company that is actually down one point 7% over the past year are.
Right well it's up about nine year to date him.
I think Nestle's just bought I reserve did what the nutrition unit of Pfizer that gets -- further the China they grow organically 67%.
We added that's the portfolio very recently as a safer place to play the emerging markets emerging markets spend 40% of their discretionary income.
On food.
So -- -- to are McDonald's and -- to that whole long term play about food food food that's with the emerging markets ago.
-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- And -- -- invention.
Largest engine maker in the world they are about 40% of their sales are overseas.
There in oil drilling not just car engine not just truck engines what -- in oil drilling.
There -- plants and and energy plants.
They are levered very much trading at nine point eight times.
2013.
Earnings let's find a shelf let's find stuff ever -- behind their stuff their emerging market growth is 30% a year.
-- again it all goes back to people want more cars they want better lecture electricity period still in China China's got a long way to go for their infrastructure.
You just talked about people in emerging markets wanting more food to eat move which is of course the agricultural ETFs.
A little surprised that over the year it is down but again year to date same -- -- up about 12% right well all all the emerging markets and -- -- were down last year tell people what's in here so they know what they're exposed to.
Number one positions Monsanto soon after that as potash John -- Archer Daniels Midland.
Bunch of food processors anything that's new agriculture we used to own just Monsanto and decided to spread the risk so easy way to do that is an ETF.
It's about 42 names all levered to that 40%.
Of discretionary income and emerging markets is on food.
Do you worry at all about what we've had on the beef market lately we have the mad -- situation in California one cow so far but we also -- had an E.
Coli scare Nebraska well.
No we don't we don't own any commodities directly some not too worried about it for my clients.
I think it did upcoming go they always do come and go.
Not that's not a big problems and Ron Weiner for fortuyn's every -- one of the four -- he's been here is -- apple it has been a huge winner for you.
Adding this recession did this that the selloffs -- -- little bit recently we've got a little worried because we also -- Qualcomm which sells.
-- -- with -- with -- opinion.
And on its earnings than we were we were that we are worried about the supply chain that they were growing too fast and they couldn't sell they couldn't get -- -- Curve for that turned out not to be so margins grew from 47 to 49% which is.
Almost unbelievable there they now sell twice as much to China and they do to Japan.
There believe it or not China Mobile doesn't have the iPhone.
There's so much where there's five stores the five apple source in China they've just started can you imagine.
Hello my times earnings growing at troops and a year.
-- for eleven times earnings it's chief.
Stock still.
The lines in the meatpacking district of new -- huge if you throw in a billion people in China no -- Ron good to see you -- -- that's Ron Weiner she EO of RD.
