As the Euro zone debt crisis continues to unfold, many of the European stocks are making new 52-week lows. We have created a page which highlights the internationals that are at 52-week lows. In this article we would like to highlight some of the international stocks in the list. These companies are Barclays PLC ADS (BCS, Financial), Credit Suisse Group (CS, Financial), Telecom Italia SpA (TI, Financial), Nokia Corp. ADS (NOK, Financial). Also you can find the complete list of the international stocks that are traded at 52-week lows.
Barclays PLC ADS (BCS)
UK based Barclays PLC operates in commercial and investment banking, insurance, financial and other related services. Barclays Plc Ads has a market cap of $50.61 billion; its shares were traded at around $14.6 with and P/S ratio of 0.8. The dividend yield of Barclays Plc Ads stocks is 2.4%.
Together with other large banks and brokers, Barcleys’ stock price is traded only at 20% of where it was in at the peak of 2007. The price appreciated to more than $21 in February, but has since retreated to and is making new lows.
Barclays bought most of Lehman Brother’s assets after Lehman went bankrupt in 2008. On June 15 Barclays Chief Executive Bob Diamond, and his management team, hosted a seminar for investors and analysts reiterating the Group’s strategy and financial targets for 2013. The company has a Core Tier 1 ratio of 11%. The increase of this ratio over the last year has been almost entirely due to profits which also enable the company to grow the dividend. Barclays Capital is reducing its credit market exposures, Wealth and Barclaycard are focusing on high return opportunities.
Credit Suisse Group ADR (CS)
Swiss based Credit Suisse Groupand Winterthur offer investment products, private banking and financial advisory services, as well as insurance and pension solutions. Credit Suisse Group ADS has a market cap of $44.01 billion; its shares were traded at around $36.64 with a P/E ratio of 11.5 and P/S ratio of 0.8. The dividend yield of Credit Suisse Group Ads stocks is 4%.
Credit Suisse is in the portfolio of Dodge & Cox and Ken Fisher. Both of them added to their positions in the last quarter.
Credit Suisse has been making new lows far earlier than it was in US market. In Swiss market the stock lost about 33% in the last 12 months, while in the US it is down only 14%. The relative better performance in the US market is caused by the dollar decline. The performances the Credit Suisse in Swiss Franc and US Dollar as displayed below.
As we pointed out in the research of US market return in foreign currencies, US investors can protect them from the devaluation of dollar by investing in foreign companies that are traded in the US. The performance of Credit Suisse is example of this.
Telecom Italia SpA (TI)
The Telecom Italia Group is engaged principally in the communication sector that operates mainly in Europe, the Mediterranean Basin and South America. Telecom Italia S.p.a. Ads has a market cap of $15.81 billion; its shares were traded at around $11.79 with a P/E ratio of 5.2 and P/S ratio of 0.4. The dividend yield of Telecom Italia S.p.a. Ads stocks is 5.3%.
The recent fears about sovereign woes spreading to Italy sent stocks around the world lower. Telecom Italia shares lost 20% in the last few days. Over the past 6 years, the stock has lost 60% of its value. Among our Gurus, Charles Brandes owns close to 18 million of the shares. In his presentation with Value Investor’s Conference in May, Charles Brandes says that the reason they own the stock and many other phone companies is because of valuations. “The industry is changing from wireline to wireless. The market is concerned about the wireline companies decline, but we found that they create a lot of cashflow. We think the market is way over reacted.”
Nokia Corp. (NOK)
Finland based Nokia is (or was) a key player in mobile communications. Nokia Corp. Ads has a market cap of $23.63 billion; its shares were traded at around $5.8 with a P/E ratio of 7.9 and P/S ratio of 0.4. The dividend yield of Nokia stocks is 6.5%. Nokia Corp. Ads had an annual average earnings growth of 1.3% over the past 10 years.
Nokia stock has been in down spiral. It is now traded only slightly higher than it was at the beginning of 1998. At the stock price of $6 a share, $2 of that is net cash. Nokia is out of favor because it seemed lost in the fierce competition of the wireless communication market. The rapid revenue growth from 2000 to 2007 came to an abrupt end. The company’s revenue has been in decline since 2008.
Nokia’s problem appeared well before its revenue decline in 2007. The company has had consistently declined operation margin, as indicated in GuruFocus’ 10-year financial chart:
The competition in wireless phone industry has eroded the profit margins of the phone makers except Apple (AAPL). With innovative products and marketing, Apple was able to grow its profit margins. Its stock has been one of the best performing stocks in the last decade.
Apparently Nokia does not have the moat that is needed to maintain its profit margins. Warren Buffett has been telling us he likes to buy companies with moat. One of the indications of moats is that the company can maintain its profit margins.
Here you can find the complete list of the international stocks that are traded at 52-week lows.
Finally, take a look at US market return in foreign currencies and learn how to protect yourself from dollar devaluations.
Barclays PLC ADS (BCS)
UK based Barclays PLC operates in commercial and investment banking, insurance, financial and other related services. Barclays Plc Ads has a market cap of $50.61 billion; its shares were traded at around $14.6 with and P/S ratio of 0.8. The dividend yield of Barclays Plc Ads stocks is 2.4%.
Together with other large banks and brokers, Barcleys’ stock price is traded only at 20% of where it was in at the peak of 2007. The price appreciated to more than $21 in February, but has since retreated to and is making new lows.
Barclays bought most of Lehman Brother’s assets after Lehman went bankrupt in 2008. On June 15 Barclays Chief Executive Bob Diamond, and his management team, hosted a seminar for investors and analysts reiterating the Group’s strategy and financial targets for 2013. The company has a Core Tier 1 ratio of 11%. The increase of this ratio over the last year has been almost entirely due to profits which also enable the company to grow the dividend. Barclays Capital is reducing its credit market exposures, Wealth and Barclaycard are focusing on high return opportunities.
Credit Suisse Group ADR (CS)
Swiss based Credit Suisse Groupand Winterthur offer investment products, private banking and financial advisory services, as well as insurance and pension solutions. Credit Suisse Group ADS has a market cap of $44.01 billion; its shares were traded at around $36.64 with a P/E ratio of 11.5 and P/S ratio of 0.8. The dividend yield of Credit Suisse Group Ads stocks is 4%.
Credit Suisse is in the portfolio of Dodge & Cox and Ken Fisher. Both of them added to their positions in the last quarter.
Credit Suisse has been making new lows far earlier than it was in US market. In Swiss market the stock lost about 33% in the last 12 months, while in the US it is down only 14%. The relative better performance in the US market is caused by the dollar decline. The performances the Credit Suisse in Swiss Franc and US Dollar as displayed below.
As we pointed out in the research of US market return in foreign currencies, US investors can protect them from the devaluation of dollar by investing in foreign companies that are traded in the US. The performance of Credit Suisse is example of this.
Telecom Italia SpA (TI)
The Telecom Italia Group is engaged principally in the communication sector that operates mainly in Europe, the Mediterranean Basin and South America. Telecom Italia S.p.a. Ads has a market cap of $15.81 billion; its shares were traded at around $11.79 with a P/E ratio of 5.2 and P/S ratio of 0.4. The dividend yield of Telecom Italia S.p.a. Ads stocks is 5.3%.
The recent fears about sovereign woes spreading to Italy sent stocks around the world lower. Telecom Italia shares lost 20% in the last few days. Over the past 6 years, the stock has lost 60% of its value. Among our Gurus, Charles Brandes owns close to 18 million of the shares. In his presentation with Value Investor’s Conference in May, Charles Brandes says that the reason they own the stock and many other phone companies is because of valuations. “The industry is changing from wireline to wireless. The market is concerned about the wireline companies decline, but we found that they create a lot of cashflow. We think the market is way over reacted.”
Nokia Corp. (NOK)
Finland based Nokia is (or was) a key player in mobile communications. Nokia Corp. Ads has a market cap of $23.63 billion; its shares were traded at around $5.8 with a P/E ratio of 7.9 and P/S ratio of 0.4. The dividend yield of Nokia stocks is 6.5%. Nokia Corp. Ads had an annual average earnings growth of 1.3% over the past 10 years.
Nokia stock has been in down spiral. It is now traded only slightly higher than it was at the beginning of 1998. At the stock price of $6 a share, $2 of that is net cash. Nokia is out of favor because it seemed lost in the fierce competition of the wireless communication market. The rapid revenue growth from 2000 to 2007 came to an abrupt end. The company’s revenue has been in decline since 2008.
Nokia’s problem appeared well before its revenue decline in 2007. The company has had consistently declined operation margin, as indicated in GuruFocus’ 10-year financial chart:
The competition in wireless phone industry has eroded the profit margins of the phone makers except Apple (AAPL). With innovative products and marketing, Apple was able to grow its profit margins. Its stock has been one of the best performing stocks in the last decade.
Apparently Nokia does not have the moat that is needed to maintain its profit margins. Warren Buffett has been telling us he likes to buy companies with moat. One of the indications of moats is that the company can maintain its profit margins.
Here you can find the complete list of the international stocks that are traded at 52-week lows.
Finally, take a look at US market return in foreign currencies and learn how to protect yourself from dollar devaluations.
