Saturday, June 30, 2007

Italian Stocks: Companies from the Boot Country

Italian facts:
1. It has the seventh highest GDP in the world.
2. The 17th highest Human Development Index rating in the world.
3. A founding member of the European Union, the Council of Europe, the Western European Union and the Central European Initiative.
4. It has the fourth largest economy in Europe.
5. The sixth largest exporter of manufactured goods in the world.
6. The fifth major tourist destination in the world
7. Exports includes cars, chemicals, aerospace, firearms, food, fashion clothing, and yachts.
8. There are 27 major ports in Italy.

Here are some stocks from the ‘Boot Country”, but don’t give them the boot until you’ve looked into them; you may get a kick out of a few.

Benetton Group SpA (BNG) makes and sells fashion clothing for men, women, and children. Some of the brands include Playlife, Killer Loop , United Colors of Benetton, Undercolors, and Sisley brands. The P/E is 18.4 and the P/S is 1.21, with a yield of 2.1%.

Enel SpA (EN) generates and distributes electricity and natural gas throughout Italy. The stock has a P/E of 15.8 and has a P/S of 1.3. It pays a generous yield of 5.3%; dividends have been paid at least once a year for seven years.

Eni SpA (E) is lucky enough to hold one of the one-letter stock ticker symbols. The company is involved in the oil and gas business, electrical generation, petrochemicals, and oilfield services. The stock has a very low P/E of 4.5, a low P/S of 0.47, and a PEG of a 3.4.

Fiat SPA ADS (FIA), the famous Italian automobile manufacturer, trades on the New York Stock Exchange. The stock pays a small yield of 0.5% based on its latest dividend, and has paid dividends sporadically for over 15 years.

Gentium S.p.A (GENT) is a biotech company is involved in the research and manufacturing of treatments for vascular diseases and cancer. Earnings have been negative and the P/S is 38.

Luxottica Group SpA (LUX) makes and sells high quality eyeglass frames and sunglasses, including such brands as Ray-Ban, Vogue, Luxottica, Chanel, Prada, Versace, Bulgari, DKNY, Brooks Brothers and Anne Klein. The stock has a P/E of 29 and a P/S of 2.74. It even generates a yield of 1.8%.

Natuzzi SpA (NTZ) makes and sells fabric and leather furniture which is sold in Europe and the United States. The stock has an extremely high P/E of 398, yet a very low P/S of 0.46.

Telecom Italia (TI), an NYSE traded company that provides telecommunications services in Italy. The P/E is 25 and the yield is approximately 5% based on its latest annual dividend, which has been paid for the last four years.

Author does not own any of the above.


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