Filed under: POSCO (PKX)

With the dollar hitting record lows every day, how can you make money in stocks? The short answer is to invest in growing companies based outside the U.S.

This strategy has propelled my investment newsletter to outperform the S&P 500 in the first nine months of 2007. Specifically, stocks highlighted in The Cohan Letter — I highlight three stocks per month — are up an average of 17%, compared to a 7% rise in the S&P 500 since the beginning of the year. Which three picks have done the best?·

• Posco (NYSE: PKX) rose 48% from $92.70 to $178.77. Barry Summerlin highlighted this Korean steel company, which I suggested might do well in an August post — it’s up 46% since then;
• CVRD (NYSE: RIO) — the Latin American telecommunications company — rose 45% from $18.50 to $33.85; and
• New Oriental Education and Technology Group (NYSE: EDU) — a Chinese educational testing company — rose 34% from $43.75 to $65.66.

I don’t know whether these particular stocks have peaked, but if the dollar keeps dropping, they could continue to do well.

Peter Cohan is president of Peter S. Cohan & Associates. He also teaches management at Babson College and edits The Cohan Letter. He has no financial interest in the securities mentioned.

Permalink | Email this | Comments

Share This

This entry was posted on Sunday, September 30th, 2007 at 7:49 pm and is filed under Stocks Money News. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.