Top picks 2013: Nordea Bank, MTR Corp.

This Swedish bank and Hong Kong subway operators are top picks for global investors.

By TheStockAdvisors Dec 29, 2012 2:55PM
Bank sign John Foxx Stockbyte Getty ImagesBy Carl Delfeld, Pacific Rim Confidential

Our top conservative recommendation for 2013 is Sweden's Nordea Bank (NRBAY). The bank is focused on customer relationships, with a keen attention to risk and costs.

Our top aggressive pick for the coming year is MTR Corporation (MTRJY). This subway operator enjoys the benefits from being a legal monopoly in Hong Kong.

Nordea Bank
Some 85% of Nordea's loan portfolio is from northern Europe and Baltic. Its balance sheet is AA rated, with very low loan losses and capital growing at 9% annual clip.

It has a dominant market position, with 10 million retail customers, 520,000 corporate clients, 1,000 branches and Nordea is two times larger than nearest regional competitor.

96% of revenue comes from non-trading activities, which equals very low volatility in operating profits which have doubled over last decade.

Nordea's lending growth rate is 16% and its latest quarterly earnings show growth of 69.8% year over year; meanwhile, the stock is trading right at book value. A record of 40% of net income was paid out as dividend. The current dividend yield is 4.1%

MTR Corporation
MTR has 218 kilometers of subway and light rail track and 84 stations plus it's a leading land developer with over 29 million square feet of commercial and residential space.

Of particular interest is that while it shares in the profits with its property development partners, it doesn't share the losses.

MTR's new CEO is the former head of New York's Metropolitan Transportation Authority, Jay Walder. Over the last five years MTR has been aggressively expanding internationally, winning contracts to operate the Stockholm subway, a new rail line that served the London Olympics, and lines in Melbourne, Daxing, Shenzen and Beijing.

MTR has a great balance sheet with cash roughly equal to total debt. It has a dividend yield of 2.5% and has raised dividends every year over the past ten years.

More from TheStockAdvisors.com
1Comment
Jan 7, 2013 6:10AM
avatar
I am surprised that Nordea Bank is being recommended, considering all the money they have lost
in Spain for pensioners, www.erva.es for a true picture.
Report
Please help us to maintain a healthy and vibrant community by reporting any illegal or inappropriate behavior. If you believe a message violates theCode of Conductplease use this form to notify the moderators. They will investigate your report and take appropriate action. If necessary, they report all illegal activity to the proper authorities.
Categories
100 character limit
Are you sure you want to delete this comment?

DATA PROVIDERS

Copyright © 2014 Microsoft. All rights reserved.

Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.

STOCK SCOUTER

StockScouter rates stocks from 1 to 10, with 10 being the best, using a system of advanced mathematics to determine a stock's expected risk and return. Ratings are displayed on a bell curve, meaning there will be fewer ratings of 1 and 10 and far more of 4 through 7.

123
123 rated 1
273
273 rated 2
482
482 rated 3
661
661 rated 4
635
635 rated 5
639
639 rated 6
619
619 rated 7
489
489 rated 8
277
277 rated 9
166
166 rated 10
12345678910

Top Picks

SYMBOLNAMERATING
AAPLAPPLE Inc10
ATVIACTIVISION BLIZZARD Inc10
BIDUBAIDU Inc10
CTSHCOGNIZANT TECHNOLOGY SOLUTIONS10
LUVSOUTHWEST AIRLINES CO.10
More

VIDEO ON MSN MONEY

ABOUT

Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.

Contributors include professional investors and journalists affiliated with MSN Money.

Follow us on Twitter @topstocksmsn.