Australian Stocks: 14 Ways to Invest Down Under

Are you looking for stocks down under? Here are a few worth taking a gander at, that mainly trade on either the New York Stock Exchange, or the NASDAQ. Some are very large, and others are very small, and should be considered as being very speculative.

Here are few facts about Australia that are important to investors:

It was ranked third in the United Nations' 2006 Human Development Index.

It was ranked sixth in The Economist worldwide quality-of-life index 2005.

It has a per capita GDP higher than the UK, Germany and France.

It has continued privatization of state-owned businesses.

Over the last 10 years, inflation has generally ranged from 2% to 3%.

69% of its GDP comes from the service sector which includes tourism, education, and financial services.

Australia's largest export markets are China, Japan, the U.S., South Korea, and New Zealand.

Here is the list:

Alumina Ltd. (AWC) is a large mining company which is involved in bauxite mining, alumina refining, and aluminum smelting. It has operations in Texas, Suriname, Jamaica, Brazil, Spain, and Guinea. It has a P/E of 18, a PEG of .66, and a yield of 2.8%.

Amcor Ltd. (AMCRY.PK) is a packaging and paper company. It has a P/E of 93, and a P/S of 2.35.

Australia & New Zealand Banking Group Ltd. (ANZ) is the third largest bank in Australia. It has a P/E of 14, a PEG of 1.5, and the stock generates a yield of 4.2%.

BHP Billiton Ltd. (BHP) and BHP Billiton plc (BBL) is the world's largest mining company, iron ore, diamonds, manganese, coal, copper, nickel, petroleum and bauxite. The Australian BHP Billiton Limited, and the British BHP Billiton Plc, trade separately with separate shareholders but it operates as one business with the same boards of directors, and one management structure. It has a P/E of 14.5, a PEG of 1.5, and its yield is 2.2%.

Coca Cola Amatil Ltd. (CCLAY.PK) is Australia's largest soft drink bottler. It has a forward P/E 16.6, a PEG of 2, and a yield of 3.2%.

Genetic Technologies Ltd. (GENE) is a genetics and genomics company which licenses patents for the use of non-coding DNA, and provides genetic testing services. The stock has had negative earnings with a price sales ratio of 7.9.

Metal Storm Ltd. (MTSX) is a Brisbane-based technology defense company which manufactures, and markets electronically initiated ballistics systems. Its earnings have been negative with a price sales ratio of 30.4.

Pharmaxis Ltd. (PXSL) develops therapeutic products for the treatment of chronic respiratory and inflammatory/autoimmune diseases. Its earnings have been negative with an extremely high P/S of 3,962.

Prana Biotechnology Ltd. (PRAN) is a biotech company involved in the research and development of drugs to treat patients with Alzheimer's disease. Its earnings have been negative with a P/S ratio of 91.

Psivida Ltd. (PSDV) is a biotech company based in Perth which develops nanotechnology products for ophthalmology, and oncology uses. Its earnings have been negative with a P/S ratio of 24.

Rinker Group Ltd. (RIN) manufactures heavy building materials. It has a P/E of 18, a P/S of 2.65, and has a yield of 3.6%.

Telstra Corporation ADS (TLSYY.PK) is a large Australian telecommunications company. Its forward P/E is 19.5, its PEG is 8. It has a yield of 5.4%.

Westpac Banking Corp. (WBK) is the fourth largest bank in Australia. According to the Dow Jones Sustainability Index, it is the most sustainable bank in the world, and has been for five years in a row. It has a P/E is 14.8, and a PEG of 1.5. It pays a yield of 4.8%.

Another option is the CurrencyShares Australian Dollar Trust (FXA), which tracks the price of the Australian Dollar.

Disclosure: The author owns CCLAY.PK.

Comments

[EverydayFinance]

I love the region. Thanks for posting, good to have all these options out there to evaluate. I have some fairly sizable holdings there. IAF is a great performer for me - up 30% YTD, with an 8% yield. Also, CSL has some great biotech prospects; bought in a few weeks back, but hasn't done much yet. Feel free to drop in for research/analysis on these holdings as well.
Dan

[Ralph F]

Isn't it easier to just buy the iShares Australia index ETF, ticker EWA?