Fri, 25 Jul 2008
5th Podcast – Stephen
It’s interesting that not only are there a number of new funds specialising in North Africa and the Middle East but existing emerging market funds have been moving capital into the region. We’re talking about countries such as Kuwait, Saudi, Morocco and Egypt. Egypt alone has returned more than 700% over 5 years; the more developed Saudi almost 200%. And what these economies have in common is relatively low inflation, economic de-regulation, oil and gas rich or commodities rich but with current account surpluses and are spending the cash on their own infrastructure. This means a growing middle class and increased economic growth. Also attractive is the low correlation with the European and US economic cycle. This is a sector that is not without risks – dependency on oil and political uncertainty in particular – but it will be attractive to many investors building globally diversified portfolios.
posted at: 16:27 | path: | permanent link to this entry
5th Podcast – Paul
EDI has just been tipped by Shares magazine as a possible takeover candidate, one candidate might be Kaplan who are private for-profit company growing fast in the United States owned by the Washington Post. Yesterday was VQ Day, and the vocational qualification market is showing good market growth as students consider alternatives to GCSE’s and A-Levels. This offers good growth potential, relatively protected at a low price.
Inland don’t seem to be as cash rich as I would have expected (though clearly it’s a strong balance sheet) and so in the cold sober light of the day I would have some concerns about this purchase. However it is pleasing to see director purchases, and a small investment might be warranted.
posted at: 16:10 | path: | permanent link to this entry