ADR Overview - Which Stocks Look Good, Which Don't

For investors concerned with the potential for inflation here at home, companies that derive a significant portion of revenues from outside the U.S. may be of interest. Based on The Applied Finance Group’s valuation model, we found 10 attractive ADRs, as well as 10 unnatractive ADRs, with a market cap greater than $1 billion that derived more than 50% of sales from outside the U.S. in the most recent fiscal year.

An ADR (American Depositary Receipt) is a stock that trades in the U.S. but represents a specified number of shares in a foreign corporation. ADRs are bought and sold on American markets just like regular stocks, and are issued/sponsored in the U.S. by a bank or brokerage, making it easier for Americans to invest in foreign companies.

10 Attractive and 10 Unattractive ADRs

Comments

[kewlhand]

Pure junk putting out tables like this with no explanation or justification of your suggestions. Actually it smells of corrupt paid pumping and bashing!

2009 Jun 25 08:26 AM

[gebby]

i agree with kewhand

2009 Jun 25 09:53 AM

[carlivar]

This is one of the worst articles I've ever seen on SA. Has it really come to this? Arbitrary lists with no statistics or explanation?

2009 Jun 25 10:32 AM

[carlivar]

I stand corrected. The article links to a valuation model. A brief summary of the model would have been helpful.

2009 Jun 25 10:33 AM

[Value Expectations]

Regular followers have been exposed to the metrics and techniques used to identify our potential buy recommendations. We apologize for not adding a summary of some of our metrics that include economic performance, valuation, management quality, earnings quality for newer followers.

Here is a link to an updated version of this article that contains those summaries:

www.valueexpectations....

2009 Jun 25 12:04 PM

[canuckify]

I love your model... SAY, as one of your attractive ADRs was implicated in a huge accounting fraud months ago. I look forward to reading about your attractive recommendations on AIG, Enron, Worldcom, and Bear Stearns.

Thats the problem with quant models, they don't have any insight into the true business models of the company -- and if blindly followed, will ensure that you get burned.

2009 Jun 25 08:30 PM

[quick]

Any special reason those companies are attractive/unattractive?

2009 Jun 25 11:35 PM

[Ellito]

Have anyone ever received any dividends from any solar companies ?
Nothing, right ?
That tells you something ?

2009 Jun 27 03:52 PM

[frflyer]

Ellito

No dividends from solar companies means next to nothing. Dividends are almost never paid by fast growing companies, who plow profits back in, to finance expansion. It's not good use of capital at that stage of their development.

2009 Jun 27 10:07 PM

[ldker]

Seriously, don't waste peoples time with this crap; u managed to waste mine.

2009 Jun 30 12:50 PM

[Alan Young]

Good evaluation model. I'll be using this list for research.

2009 Jul 06 02:44 PM

[Kelev]

At the time of publication, ATE was trading at a $3.1B market cap. Today, ATE sits at $4.6B. Price has skyrocketed on low volume. Strong short sell.

2009 Aug 15 11:53 PM