VIDEO - Phil Mackellar: Invest in the Beaten Up Companies and Countries
Speaking with INN, Mackellar said that while North American investments are pricey, there is plenty of value elsewhere in the world.
Contrarian investors would do well to keep an eye out for companies and countries that aren’t looking so hot right now, according to Phil Mackellar of Contra the Heard Investment Letter.
Mackeller, who is an analyst and co-portfolio manager at Contra the Heard, spoke with the Investing News Network (INN) at the Vancouver Resource Investment Conference (VRIC) to elaborate on what he looks for as investment opportunities.
In short: “Things that nobody else likes to touch.”
“The thing I like to look for is valuation metrics, very plain and simple,” he said, noting that price to earnings, price to cash flow and other metrics are valuable for assessing jurisdictions globally.
Unfortunately for North American investors, Mackellar said that the US is expensive, but there are plenty of good places to look for companies and projects elsewhere around the world; he named Portugal, Spain, Argentina, Greece, Turkey, Russia, China and Taiwan as good examples. Of course, he said, “They’re not without risks.”
“These kind of countries are beaten up and unloved … as you’d expect, there’s a variety of reasons for that,” explained Mackellar.
On Turkey, Mackellar said that while it has a slew of problems, it has managed to treat Contra the Heard well thanks to an investment in Alacer Gold (TSX:ASR,OTC Pink:ALIAF) and its Turkish Çöpler gold mine. The company made its way onto INN’s list of top TSX stocks at the end of last year.
Watch the full video above for Phil Mackellar’s thoughts on how Contra the Heard picks its investments around the world. Click here to see our full VRIC playlist on YouTube, and click here to see our interview with Benj Gallander, also of Contra the Heard.
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Securities Disclosure: I, Scott Tibballs, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.