Friday, August 05, 2011

Swiss Stocks: The Last Haven?

With the US markets crashing, most European markets in turmoil, Japan stagnating, and other areas of the world suffering due to the worldwide recession, where is an investor to turn? The Swiss franc is skyrocketing, while the currency for the rest of Europe is tanking. Since Switzerland is known for its neutrality, stability, security, and bank secrecy, maybe it is time to take a closer look at companies from a country that has been independent since 1291.

Here are some Swiss securities worth looking into. All of the stocks pay dividends except one, and all the dividend payers pay annually.

One such stock is Swisscom AG (SCMWY.PK), the largest telephone company in Switzerland, which has a yield of about 5% based on its latest annual dividend payment. The stock trades at 11.6 times forward earnings, and is traded on the Pink Sheets.

Credit Suisse Group (CS), one of the famous Swiss banks and the second largest in Switzerland, has a very favorable forward P/E of 6 and a Price Earnings Growth ratio of 0.8. (Remember: the lower the PEG the better the buy.) The stock yields 4.4% and trades on the NYSE.

Like chocolate? Nestle SA (NSRGY.PK) is a multinational packaged food company especially known for chocolate. It has a forward P/E of 14.6 and a PEG on the high side of 3.61. The stock yields 3.1% and trades on the Pink Sheets.

Syngenta AG (SYT) is in the business of seeds and crop production. It sports a P/E ratio of 18. The stock yields 2.5% and trades on the NYSE.

UBS AG (UBS) is Switzerland's other big bank. It's the second largest bank in Europe and is the world's largest manager of private wealth assets. It has a forward P/E of 13.

Novartis AG (NVS) is a developer and marketer of pharmaceuticals and health care products; its divisions also include Animal Health, Gerber, and CIBA Vision. One of its subsidiaries is Sandoz, inventor of LSD and manufacturer of saccharin. It has a forward P/E of 18 and a PEG of 1.3. The stock yields 1.7% and trades on the NYSE.

Roche Hldg. (RHHBY.PK) is the large pharmaceuticals and diagnostics biotechnology company. It has a forward P/E of 3.8.

ABB (ABB) is in the power and automation technology industry. It has a P/E of 11.1 and trades on the NYSE.

Logitech International SA (LOGI) ia the famous manufacturer of mice and other peripheral and personal interface devices for personal computers. It has a forward P/E of 9.9. The stock does not pay a dividend and trades on NASDAQ.

For free lists of more European stocks, go to, where the lists can be downloaded, sorted and updated.

Disclosure: Author did not own any of the above at the time the article was written.


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