This Day On The Street
Continue to site
ADVERTISEMENT
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

Do The Silvio Shuffle: Italian Stocks To Watch As Economy Improves

James Dennin, Kapitall: Can Italian stocks rise above the antics of Silvio Berlusconi? This puts our own governmental woes in perspective.

The tabloid-friendly Italian former Prime Minister Silvio Berlusconi has been making the most of his time between scandals to pursue another run for the country's leadership. He had initially hinted he would withdraw his party's support of the current coalition government – which has only been in place for five months - a suggestion he finally rescinded this morning.

Read more from Kapitall Wire: Keep Calm and Invest On: 4 Stocks to Survive the Government Shutdown

The action suggests Berlusconi is slowly caving in to pressure to reduce his influence on Italian politics – where his larger than life personality has always been a focal point.   His most recent indictment was only three months ago, when Italy's Supreme Court upheld a number of fraud convictions and was threatening to remove him from his Senate seat. 

What does Italy's libidinous former head have to do with your portfolio? Well, a lot actually. Italy is the third largest economy in the Euro-zone. And it also has huge amounts of debt – over $2 trillion – that it will not be able to pay back without meaningful political reform.  

And doing that, according to the current Prime Minister Enrico Letta, will involve staying on its current political course long enough for the country to stabilize and unemployment to shrink. Right now he says that Italy looks "unfixable…messy" when compared to the rest of Europe, and that an economic recovery will come only once the country shrugs off years, if not decades, of political drama. 

Investing ideas

Italian stocks hit an instantaneous two-year-high on the news that Berlusconi would not return to power any time soon. The company's major banks were boosted, as were Italian sovereign bonds. The move can also have a huge impact on the European economy as a whole, as investors grow more confident in the prospect that Berlusconi's political machinations may draw to a close.

We decided to run a screen for healthy Italian stocks as the nation's recovery continues. We searched for Italy-based stocks trading on US exchanges with 'buy' ratings or better as an average analyst rating. We were left with only three companies on our list. 

1 of 2

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
Only $9.95
14-Days Free
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!
SYM TRADE IT LAST %CHG

Markets

DOW 18,080.14 +21.45 0.12%
S&P 500 2,117.69 +4.76 0.23%
NASDAQ 5,092.0850 +36.0220 0.71%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs