Great Wall Motor Company (GWLLF)
If you’re looking for something a little more exotic, consider Chinese automaker Great Wall Motor Company (GWLLF).
If you’re not familiar with Great Wall, you should be. It’s China’s largest SUV and pickup manufacturer, and it has traded in Hong Kong since 2003. The company has been ranked among Forbes Top 100 Chinese Enterprises twice, and it made Barron’s list of the Top 10 Chinese Brands You Must Know.
Chinese stocks have had a rough start to the year, and Chinese auto stocks are no exception. The U.S. ADRs — which trade over the counter — are down about 30% from their late 2013 high. The shares currently trade hands at 10 times earnings and pay a 2.0% dividend.
I should be very clear here: Great Wall is not in the same league as auto stocks like Daimler or even GM when it comes to management or financial transparency. It is a Chinese company and comes with all the risks that investing in China entails.
But if you believe — as I do — that the Chinese economy is undergoing a structural change that will favor domestic consumption over production for export, then it makes sense to have exposure to Chinese automakers like Great Wall.
One word of caution: The American ADRs are thinly traded, so be careful when placing and order. Use a limit order and consider breaking any large orders into smaller lots that can be traded over the course of a couple trading days.
Charles Lewis Sizemore, CFA, is the editor of Macro Trend Investor and chief investment officer of the investment firm Sizemore Capital Management. As of this writing, he was long DDAIF. Click here to receive his FREE weekly e-letter covering top market insights, trends, and the best stocks and ETFs to profit from today’s best global value plays.