The Check Up

Think Global. In August 2010, Olivier Purshe, co-portfolio manager of GMG Defensive Beta (MPDAX), highlighted several companies that he believed were poised for international growth. Here’s a look at how his recommendations fared.

Tupperware Brands Corp (NYSE: TUP) has a strong management team and a global sales force of 2.6 million in almost 100 countries. The company generated $2.3 billion in sales of products in its catalog—Tupperware, beauty and personal care products—through direct sales in 2010. Its business model has allowed Tupperware to maintain one of the highest margins in the housewares and specialties industry—15.8 percent as of the firm’s most recent quarter. As the economy continues to experience lackluster growth, Tupperware’s sales could receive a boost from consumers who opt to eat at home rather than at a restaurant. Tupperware’s stock has returned 68 percent since recommendation.

Purshe believed snack food and beverage maker PepsiCo (NYSE: PEP) would prosper from continued growth in China. Its share of the Chinese soft-drink market currently stands at about 29 percent. Last year, PepsiCo recorded double-digit sales growth in emerging markets such as China, India and Vietnam. As incomes in developing countries continue to increase, consumption of PepsiCo’s products should follow suit.

Although PepsiCo shares have only returned 0.4 percent since recommendation, the stock offers an attractive yield of about 3 percent. The company initiated its dividend in 1952 and has increased its payout for 39 consecutive years. 

Visa (NYSE: V) operates retail electronic payments networks worldwide. The company’s stock price has been relatively unaffected by the recent market downturn. The stock pays a quarterly dividend of $0.15 and has returned 20.5 percent since recommendation. 

Surprise Surprise

Crackberry Comeback? After falling precipitously from its 52-week high of $69.30 recorded in February, Research In Motion’s (NSDQ: RIMM) stock has been staging a comeback. The Canada-based maker of the Blackberry line of mobile devices has seen its shares climb by 30 percent as of early September. 

Blackberry devices once dominated the US market, but innovative offerings from Apple (NSDQ: AAPL) and Google (NSDQ: GOOG) have led to dwindling Blackberry sales in the region. However, the firm’s business continues to expand overseas. 

The Blackberry Messenger instant messaging service remains popular in emerging markets, and 67 million users worldwide own a Blackberry device. The company posted 16 percent year-over-year sales growth in the most recent quarter.

Blackberry remains the dominant smartphone among enterprise users. But the company’s inability to produce a compelling touchscreen smartphone has prevented its products from gaining traction in the consumer market.

Research in Motion continues to move beyond its core business to compete with Apple. In April, the company released the BlackBerry Playbook to combat Apple’s iPad tablet computer. However, Playbook has yet to build a critical mass of applications—at present 3,000 applications exist for the Playbook compared to about 100,000 for the iPad. The company also recently launched the Blackberry App World 3.0, which allows users to find apps, games and themes on their Blackberry. 

The company’s profits dropped 10 percent year over year to $695 million in the second quarter. The stock currently trades at about $31, at the lower end of its 52-week range. 

Who’s Buying What

Bright Light. On Aug. 7, Wunderlich Securities analyst Theodore O’Neill upgraded his rating of SunPower (NSDQ: SPWRA) to “buy” from “hold.” In a research note to investors, O’Neill noted the stock was down nearly 50 percent from its 52-week high of $23.36. The price target O’Neill set for the stock is $16, which is right around its book value. This upgrade boosted investor confidence and helped SunPower shares surge by 8.5 percent to close the day at $13.56. One day earlier, analysts at Credit Agricole also upgraded SunPower shares to “underperform” from “sell,” with a price target of $14. 

San Jose, Calif.-based SunPower designs, manufactures and markets high-performance solar technology for private, business and government use. SunPower’s share price represents a bargain compared to industry leader First Solar (NSDQ: FSLR), whose shares trade at about $90. First Solar’s stock is also about 50 percent off its 52-week high. 

O’Neill said investors should think of this stock as a long-term investment. In the nearer term, however, O’Neill believes 2012 should be a better year for the solar industry. He also noted that the stock is only down 2.7 percent year to date, despite the recent slide from its July high.