Marc Ashton
2 minute read
13 Mar 2014
6:00 am

Here are five off-shore stocks to look over

Marc Ashton

Business recently highlighted relatively cheap dividend yielding stocks on the JSE.

Image courtesy stock.xchnge (KillR-B)

But with many South African investors now active in international shares, we picked the brains of some local asset managers and stockbrokers to give you some ideas around international shares you many want to look at:

Lenovo Group is an exciting tech play

Ewald Fourie, an analyst at South African asset management firm Anchor Capital has described this technology player as the “brand to watch”.

He tells clients Lenovo is already the number one in global PC shipments, is looking to grow via its acquisition of Motorola and delivered 102% growth in mobile phone sales in the previous year. The US listing of Lenovo trades on a price to earnings multiple of around 13 and offers a dividend yield of 2.3%.

Hang on to McDonalds but be wary of Coke

A recent note from Byron Lotter at Vestact says he’s taking clients out of Coca-Cola and is looking at McDonalds carefully after two stagnant years of sales. He adds that government is also promoting healthier eating and Vestact are watching this theme play out. Vestact continues to hold McDonalds and shareholders can enjoy a 3.4% dividend yield in dollars.

GVC Holdings

With the FIFA World Cup kicking off in June 2014, Edison Investment Research, which covers international and South African equities, have identified this gaming player as a stock to watch.

GVC is a London listed company which owns a number of gaming and sports betting properties includingSportingbet, Betboo and Casino Club and has already delivered 71% to investors over the last 12 months. However it trades on an un-demanding price to earnings multiple of 7.6 times historical earnings, has a dividend yield of 9.8% and potentially offers upside for investors with an appetite for risk.

Neopost

Peter Garnry, Saxo Bank’s Head of Equity Strategy, says a share he has identified is the French post and mailing services company Neopost, which has been heavily sold down in the last few weeks following a weak trading update from the group. An “excellent short term trade”, he says.

Neopost has a PE multiple of 12 with a dividend yield of 6%.