It's natural for investors to focus only on domestic companies, because they are the most familiar with the products and services these companies offer. But you risk missing out on potential opportunities by rigidly holding to a myopic view of markets.
Raising your sights to take in global businesses that want to tap the rich American market is a smart way to diversify your portfolio geographically while also taking advantage of the growth potential these international companies offer.
Investors might want to size up these companies whose products will soon come ashore in the U.S. from their home markets -- if they haven't arrived already. Look to Canada Goose (NYSE:GOOS), Canopy Growth (NASDAQ:CGC), and Geely Auto (OTC:GELYF) if you want to spice up your portfolio with some international flavor.
Feathering its nest beyond goose down
Canadian apparel leader Canada Goose is best known for its luxury winter parkas that can help you stay warm -- and easily set you back $1,000. Part of the concern holding investors back is its image as a single-season, one-trick pony. Three quarters of its revenue is generated in the fall and winter seasons, its fiscal second and third quarters.
Now, though, Canada Goose is trying to break out from that mold and expand to be more of an all-season apparel company, offering knitwear, spring wear, and footwear. Non-parka direct-to-consumer revenue nearly doubled in the first quarter this year as lightweight down, knitwear, and rainwear rose to represent a third of channel sales for the first time ever.
Late last year it also acquired Baffin, a Canadian designer and manufacturer of performance outdoor and industrial footwear, which it intends to develop as a separate Canada Goose footwear offering. CEO Dani Reiss told analysts last quarter, "Cold-weather footwear today looks a lot like parkas did 20 years ago."
The stock of Canada Goose is down 9% in 2019 and over 15% for the past year, but if it can smooth out its revenue stream without ruffling feathers, it could take flight once more.
A high point in beverages
Another Canadian company is marijuana producer Canopy Growth. Although everyone sees the obvious potential for some kind of alcoholic beverage considering its partnership with Constellation Brands, the owner of the U.S. rights to the Corona and Modelo family of Mexican beers, there may be an even bigger opportunity in marrying cannabidiol (CBD) with sports drinks.
Just this month Canopy Growth acquired a majority stake in BioSteel Sports Nutrition, a Toronto-based producer of energy sports drinks, and it has an eye on acquiring the whole thing eventually.
Because of the widely held belief that CBD has therapeutic properties, a sports drink infused with the hemp-based compound could be a big seller, arguably greater than even alcoholic beverages. And BioSteel is already well ingrained in the sports field with endorsement contracts across all major sports including football, hockey, baseball, and tennis.
Canopy CEO Mark Zekulin said of the acquisition, "We view the adoption of CBD in future BioSteel offerings as a potentially significant and disruptive growth driver for our business," and that should be both north and south of the Canada-U.S. border.
Driving into the future
Many might have figured that Chinese electric-car maker NIO (NYSE:NIO) would bring its EVs to the U.S., and many others might have been clamoring for it to do so after it briefly held a lap record in 2017 at the Nurburgring (a legendary German racetrack used by automakers to demonstrate a car's performance). Tesla recently set an unofficial EV record at the Nurburgring, with a non-production Model S.
Yet NIO is having substantial financial difficulties and may be more worried about staying afloat than floating its cars to the U.S. Which is why its firmly established rival Geely Motors may get here with a new car offering before NIO does.
If you've seen a Volvo, you've already seen a Geely car in the U.S. since it owns the Swedish automaker, along with a half interest in the Smart brand acquired from Daimler earlier this year. But it will be Geely's Lynk & Co brand that will likely be the next to land on our shores. Currently, Lynk vehicles are is only sold in China, but CEO Alain Visser told Automotive News it plans to launch vehicles in Europe next year and in the U.S. in 2021.