Attractive ADR’s from Around the Globe – Including Siemens (NYSE:SI) Telecom Argentina (NYSE:TEO) and Hitachi, Ltd. (NYSE:HIT)

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As investing in foreign markets continues to gain popularity amongst US investors, we often talk about ways to help our readers identify attractive investment opportunities overseas. One way to add global exposure to your portfolio is through the purchase of ADR's (American Deposit Receipts), or shares of foreign stock issued by domestic banks.

One of the key benefits to investing abroad is capitalizing on the rapid growth of emerging markets. At the same time, the ability to diversify across multiple countries and economies also provides a benefit by lowering investment risk. There will be times when the U.S. market is less attractive than others; therefore, ADR's provide investors a way to participate in other economies as a hedge against complete exposure to the dollar, without dealing with the fees and conversion hassles when purchasing shares on foreign exchanges. Lastly, some foreign companies possess competitive advantages when compared to U.S. companies in terms of labor, materials, and/or specific skills, which may present attractive opportunities.

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In a recent edition of our Investment Advisor Ideas newsletter we provided a list of over 100 companies from all over the globe that are traded in the U.S. as ADR's. The companies that we have provided are from The Applied Finance Group's (AFG's) ADR universe, and contain characteristics that we look for when identifying stocks that are more likely to outperform. These companies are expected to improve their Economic Margins (what a company earns above or below its true cost of capital) in the next fiscal year and are currently trading at a discount to their intrinsic value.

The list below contains 26 of the 104 companies from the world over that look attractive according to AFG's valuation model and are expected to improve their true economic profitability (Economic Margins) at a greater rate than its peers. Companies that fit this criteria, have proven through numerous back-tests to be more likely to outperform than companies identified by AFG as having unattractive valuations and look to be deteriorating profitability.

Click Here, to gain access to the entire report with all 104 companies.

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