Seven Stocks That Benefit From a Falling Dollar

Let me know by email if you come up with other sectors likely to be weak-dollar winners, and I'll share your suggestions with readers in updates to this column.

Changes to Jubak's Picks

Buying BorgWarner: In the last six years, BorgWarner has turned itself into an international auto parts supplier from pretty much a domestic U.S. only business. That positions the company to reap the rewards of a falling dollar. In 1997, about 85% of BorgWarner's business came from the Big Three U.S. automakers; in 2002 the U.S. share of the company's business had fallen to 68%. The company has also gone through an internal reinvention by shedding commodity businesses to focus on developing proprietary powertrain systems. With domestic car inventories dropping to normal levels in December after November's bloat and a falling dollar leading to increases in BorgWarner's sales in Europe and to U.S. factories of overseas car companies, I think 2004 earnings growth is likely to top the 13% now expected by Wall Street analysts. I'm adding the shares to Jubak's Picks with an October 2004 target price of $110 a share.