Tim Hanson had found an ideal stock to recommend. The advisor of Global Gains had run his screens, investigated potential demographic tailwinds, and even figured the expected beverage consumption per capita in a number of regions to discover that people in Russia and Nigeria are about to realize how thirsty they are. From there, it was an obvious jump for the international man of mystery to see that Coca Cola Hellenic
Unfortunately for Tim and team, the Greek market got an unexpected boost as a result of swirling talk of debt restructuring, and Coca Cola Hellenic shares jumped more than 15% in January on that tangential news, removing Tim's margin of safety for the investment. He still thinks shares are undervalued (he believes they're worth $30 to $32), but not nearly as much as they were when he penciled in the pick. He's waiting for things to calm down again in Greece in order to get exposure to all those thirsty Russians and Nigerians.
Meanwhile, he's hoping for some bad news out of China to give him a better entry price for Canadian National Railway
Canadian National Railway has proven more stable over the years than many in the industry. While its share price would take a hit from such news, that would provide an entry point rather than a reason for concern. The company's most recent results showed growth far ahead of analysts' expectations, and it's recently raised its dividend and repurchased shares. Tim thinks the company's worth $70 to $80 per share and -- without even intending the train-related pun -- vowed to keep track of it on his watchlist.
The third company Tim's watching is down, surprisingly enough, because of things the company actually did. Johnson & Johnson
Tim's got his eye on all three of these companies as potential investments, and you can do the same -- just go to www.MyWatchlist.com or click on one of the links below to start your own free watchlist today.
Roger Friedman doesn't own shares of any of the companies mentioned above, but he'll be watching them. Smith & Nephew is a Motley Fool Global Gains pick. Canadian National Railway is a Motley Fool Stock Advisor recommendation. Motley Fool Options has recommended a diagonal call position on Johnson & Johnson, which is a Motley Fool Inside Value pick and a Motley Fool Income Investor pick. The Fool and Motley Fool Alpha own shares of Johnson & Johnson. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.