Yahoo Finance Adidas as European stock pick to turn turmoil into opportunity
The Greek stock market tanked when it finally opened on Monday after a five-week shutdown following a tense bailout standoff. At the same time, investors are still on edge from the wild gyrations in Chinese stocks.
But all this turmoil overseas also creates opportunity for global investors. “It’s important to know where you don’t want to be as an investor, just as important as it is to know where you want to be,” said Chris Semenuk, portfolio manager of TIAA-CREF International Equities Fund. As a firm TIAA-CREF manages more than $850 billion.
The money manager advises investors to stay away from China because the market there is “very much policy-driven,” he said. “By intervening with the market what the government has said is ‘we’re happy to let you buy our markets but we’re not necessarily sure about letting you sell them,’” said Semenuk.
Europe is one of the places he’s finding opportunities. “Companies have been downgrading earnings expectations almost five straight years now…you have a supportive central bank in the ECB, you have solid shareholder governance,” he said. “And let’s not to forget you have a weak euro.”
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Some stock picks Semenuk suggests and why:
Sky Plc. (SKY.L)
- The largest and most successful pay television company in the United Kingdom
- Recently connected all of its UK customers to the internet
- Capturing more market share through new OTT (Over the top) service for lower income customers
Accor. (ACR.F)
- New CEO for this French-listed global hotel brand focused on budget and midscale segment, was formerly in private equity
- Consistently generates net cash flow
- One of the cheapest global lodging names at a 20 to 30% discount to global peers
Adidas (ADS.DE)
- Adidas recently hired three of Nike’s most prominent sneaker designers with the goal of designing products made specifically for the U.S. market
- Company buys back stock regularly
- As the European economy begins to recover, consumers will feel more confident.
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