In this episode of Buy Hold Sell, we look at stocks that generate their earnings offshore. These earnings have been squeezed as the local currency rallied 10% against the greenback. We ask two fund managers if they think this shift presents an opportunity to pick up quality business at lower prices.
Panel: Matthew Kidman from Centennial Funds is joined by Ben Rundle from NAOS, and Sam Granger from Totus Capital.
- Boral: Capital intensive, High PE, Headwaters give good exposure to infrastructure but stock is expensive.
- James Hardie: Peers in US have reported strongly, and James Hardie has been taking market share. However also has had operational issues, and management turnover.
- Ansell: High ROE, good track record, buyback is coming.
- Each of the panelists puts forward their top pick for exposure to offshore earnings.