This Day On The Street
Continue to site right-arrow
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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Sozzi: The Next Cold War Could Pummel these Corporate U.S. Forces

Stocks in this article: NKE YUM

NEW YORK (TheStreet) -- Welcome to ugly town. Russia has already liquidated $100 billion of U.S. Treasuries ahead of potential Western sanctions due to Crimea chaos. Further, the land of bear wrestling Putin has warned that it will pass a bill to freeze the assets of European and American companies that operate in Russia. Wowzers.

Believe you me, over the next couple of weeks you will hear more talk about the next Cold War. It doesn't take a Ronald Reagan historian to know this would be bad news for investors that have portfolios weighted in global companies. My humble view is that investors have gotten too complacent on geo-political risks, and are in for a rude awakening on this Russia vs. the West issue as Russia is frequently pitched by execs as a fast-growing market that is getting more investment dollars.

Here are two examples of companies that could be hurt by the rising tensions.

  • Nike (NKE) has 99 stores in Russia, 57 of them factory stores. In 2013, revenues from Russia rose a cool 28%. BTW, Nike also designed the jerseys for the Russian Ice Hockey team, and is supposed to be a major player for World Cup 2018, which will be held in Russia.
  • Yum! Brands' (YUM) KFC segment has 250 restaurants in Russia, with plans to raise that total to 400 by 2015. In the past two years, KFC Russia has had the highest same-store sales growth rate for the brand globally.

All of this is scarier than Ivan Drago in Rocky 4, that is for darn sure.

Watch More Videos From Brian Sozzi

-- By Brian Sozzi CEO of Belus Capital Advisors, analyst to TheStreet

At the time of publication, Sozzi held no position in the stocks mentioned.

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
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!

Markets

DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

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