This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

Here are the Best British Stocks for 2012

Despite a rather grim outlook for Europe in 2012, Jim Moffett, portfolio manager for the Scout International Fund (UMBWX) is still finding value in some companies based in Great Britain including GlaxoSmithKlein (GSK - Get Report), British American Tobacco (BTI) and Vodaphone. (VOD).

"The British economy and its policy-makers are wrestling with the same issues as the rest of Europe, but they many of the region's best companies are not only undervalued but under-the-radar, so we think that's an attractive place to invest," Moffet said.

The $7.2 billion fund, which garners 4 stars from Morningstar (MORN), is down 8% over the past year, better than 51% of its peers in the foreign large growth category. Over the past ten years, the fund has returned an average of 7% annually, outpacing 84% of its Morningstar rivals.

Although several of the GlaxoSmithKlein's patents on key products have expired, Moffett believes the company has moved past patent issues and says the company has several good drugs in the pipeline. He also says the drugmaker has consolidated and cut down a lot of its costs.

He is also a fan of British American Tobacco as a play on the emerging markets, where the company sells a lot of its products.

"The developed world has gotten smart and they don't smoke as much, but in the emerging markets the people are still smoking and they've got pricing power. And it isn't a volume growth story, it's a pricing power story and we think they are in good position to take advantage of it," says Moffett.

Finally, Moffett likes Vodaphone's growth among global cell-phone users, as well as the increasing profitability of the company's deal with Verizon.

Disclosure: TheStreet's editorial policy prohibits staff editors and reporters from holding positions in any individual stocks.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
BTI $118.25 1.76%
GSK $47.60 -0.46%
VOD $34.37 -0.66%
AAPL $126.41 -1.66%
FB $81.21 0.39%


DOW 18,135.72 +38.82 0.21%
S&P 500 2,101.04 +2.51 0.12%
NASDAQ 4,982.8090 +15.6680 0.32%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs