Tags: emerging | markets

Mobius: Emerging Market Bargains Abound

By Dan Weil   |   Friday, 27 Mar 2009 09:13 AM

Mark Mobius, chairman of Templeton Asset Management, sees bull markets breaking out for emerging market stocks around the world.

"There's too much to look at nowadays because we're finding bargains in almost every country," Mobius tells Bloomberg TV.

"Last month we were in Latin America and visited Brazil, Argentina, Peru, Chile, and Mexico. In every country we found fantastic bargains."

With stocks bouncing back in some markets like China, you have to move quickly to avoid missing these bargains, Mobius says.

"With all the negative news, there's a tendency to hold back, but we're forging ahead."

Mobius likes companies with big cash holdings. "Cash is king," he says. "We want to make sure companies have enough cash to hold them over in any eventuality. We like low debt too."

Management quality is very important as well, Mobius says.

"With all the problems we've had, there's a tendency for companies with skeletons in the closet to be in trouble. Unless management can handle that, you're in deep trouble."

Mobius also looks at derivatives carefully. "So many companies have lost so much money on derivatives," he points out.

"One of the first questions we ask is what are you doing with derivatives?"

Other experts also are bullish on emerging markets. Citigroup analysts just raised their rating on Russian equities to overweight, for example.

"The Russian market is exceptionally cheap," Andrew Howell, a Citigroup emerging markets strategist, told MarketWatch.

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Mark Mobius, chairman of Templeton Asset Management, sees bull markets breaking out for emerging market stocks around the world. "There's too much to look at nowadays because we're finding bargains in almost every country," Mobius tells Bloomberg TV."Last month we were in...
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2009-13-27
 

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