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Best European Stocks To Buy Now? (March 2021) - YouTube
Channel: Nesami – Smart Investing
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What's up millennials? Today we're going to do
something we haven't done in a while which is to
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talk about European stocks. Today we're going
to take a look at three different stocks from
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different sectors and different countries as well
so enjoy. The first company we're going to talk
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about is a company called ASML with the ticker
symbol also ASML. This is located on the stock
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exchange in amsterdam so the netherlands. This
is also a dutch company so a company from the
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netherlands and this is one of the leaders in
the semiconductor industry. It has over 28,000
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employees and it has offices in 60 cities within
16 different countries. One of ASML's major
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products is their photolithography systems and
these systems are used for companies that make
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microchips. Of course chips right now are quite
hot so you can see them in basically all the
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digital devices. You're going to see them in all
the cars as well in the future so the microchips
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are very important and therefore the systems that
can make these microchips are also very important.
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So again these are called photolithography
systems. You can see one on the screen right
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now in this youtube video. Basically what they
do is this very incredible system it shoots out
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a ultra violet light and it goes via these like
mirrors something like that. It's projected onto
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what's called a wafer so here on the screen you
can see an example of one of those wafers and
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these wafers can be turned into those microchips.
Those chips then can be used for smartphones, for
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digital devices, for cars as well and of course
in the future we are going to see more and more
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digital devices, more cars that are going to need
chips as well because they become smart if you
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will so i think more and more lithography
systems are going to be needed as well.
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ASML has a market cap of about 185 billion euros.
Keep in mind these are euros of course and they
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just reported their earnings for Q4 and also
for the full year of 2020 and they say that they
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have 14 billion euros in sales in 2020 which for
them was a growth of year over year of about 18%
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versus the year before 2019. With regards to
technical analysis we can see that the long-term
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chart looks very great. Right now on the screen
you can see the graph since 2020 more or less
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and here on the right-hand side you can also see
that for the last year we had a nice return of 83%
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on this stock so again i think long term this
looks like a beautiful chart. We've already
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gone ... we've already had a little correction
today. The entire market is selling over
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like crazy today, it's quite insane to watch,
and ASML was definitely no exception today.
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It's also down more than six percent. It's even
below this 55 daily exponential moving average
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which happened quite a bit in the past as well
in July, August, September, October even we saw
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a few times that it dipped below that 55 EMA but
then quickly came back up and we're now actually
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very close to a support line of 433 euros more or
less. I would kind of expect a bounce up there.
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Hopefully we're going to go back up then but the
market does seem quite kind of frothy right now so
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if this support breaks it could turn into a larger
correction but i could actually see that as an
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opportunity. The second company i'd like to talk
about is Airbus. This has ticker symbol AIR and is
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located on the stock exchange in Paris in France
so this is or this was a collaboration between the
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French, German and Spanish aerospace companies
and the funny thing is that the headquarters
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is actually located in the Netherlands so
it's a very multinational company you could
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say. They have many many products. If we go for
example to aircraft ... commercial aircrafts,
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we can see that they have large planes they
produce for other companies. They also produce
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helicopters for civil and military applications.
They've also got multiple defense airplanes and
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jets as well and if we scroll down a little bit we
can also see they have unmanned aircraft systems
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so basically drones, major drones that can be used
for commercial and military applications as well.
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They have a major space portfolio. You can see
earth observation satellites, telecom satellites,
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all kinds of launchers etc etc etc and one of
the things i really like about Airbus is that
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they continue to innovate as well. They are
also looking into the eVTOL industry like the
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aircraft you can see on the screen right
now. This is a prototype but they already had
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more than 100 test flights with this eVTOL. With
regards to the financials we can say that Airbus
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has a market cap of 78 billion euros and
according to the annual report of 2020 or
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fiscal year 2020 they took quite a big hit on
the revenue part because of COVID 19 of course.
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They had a 70 billion dollars in ... or euros
rather in revenue in 2019 but in 2020 they only
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had 50 billion euros in revenue so that is
a pretty major decline. If we go into the
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chart for this one we can see that this is more or
less a recovery play just like many other airline
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companies out there but i do think this has quite
a lot to go still. Here we see of course the
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corona dump. This was in February, March of last
year but we can see that currently we are trading
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at more or less 100 euros and we still have about
40% to go to go back to that previous all-time
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high. Now we are running into a mental resistance
of 100 euros. We're right on top of the 100 euro
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level right now but i am long-term still bullish
especially if they keep innovating, if they keep
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looking into sectors like the eVTOL industry. With
regards to technical analysis the indicators don't
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really tell me much but i do see some support at
95 euros. I think that could be a nice support
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level and potentially it could even go down to
the 55 EMA which is this white line over here
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so that would mean probably like 93 euros more
or less but i do think if it goes back down there
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it probably is an opportunity. And then the last
company i'd like to talk about is Swiss Re. This
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is under ticker symbol SREN and it's located on
the Swiss stock exchange. This company is located
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in Zurich in Switzerland and Swiss Re is one of
the world's leading providers of reinsurance.
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It's actually funny, i did translations for
this company while i was still working at a
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translation agency. Right now i don't anymore. But
this company is a very huge player in the world of
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reinsurance. What that means, reinsurance, is that
well there are insurance companies that can also
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get insurance themselves as well so they reinsure
themselves against certain risks so this company
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Swiss Re is the reinsurance company. So what
they do, what other companies do is they pass on
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a part of their insurance risk to this company
Swiss Re so that they can get less risk instead.
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And Swiss Re currently is mainly focused
on property, casualty, life and health
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reinsurance. With regards to the financials we can
see that Swiss Re has a market cap of 26 billion
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in Swiss franc so that is about 23 billion euros
and we can also see that in 2020 they had to take
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a very big hit because of COVID 19 of course, a
big hit on their net income. They say that without
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the COVID 19 they would have had a 2.2 billion
dollars in net income but because of COVID 19
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it's only minus 0.9 billion dollars in net income.
What is very nice to know is that Swiss Re offers
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a very juicy dividend of six point six percent
more or less. They offer a dividend of five point
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nine Swiss franc which is about six point six
percent based on the current price per share. If
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we go into the charts we can see that this is also
a recovery play. Here we see the major dump from
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the coronavirus of last year and now we are seeing
a recovery going on right now. We're actually in
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the green today compared to the market being quite
in the red today but i think i'm very bullish long
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term about this chart as well. I think we could
definitely go back to the previous all time high.
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From here to that point would be more or less 30%
so if we go back there then that would be pretty
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good of course. Now with regards to technical
analysis we can see that we have broken above
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a nice resistance level of 85 euros or 85 Swiss
franc i have to say so that is good as well. We
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could come back down to that 85 swiss franc level
but i do think that is an opportunity as well
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just like i said with the other stocks. And if i
look at the indicators they do seem constructive
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to me so yes i am still bullish on this chart
in the long term. So those are three European
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stocks for you to look at. I hope you enjoyed this
video. If you did, please consider sharing this
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video with your friends who might also be looking
into European stocks. And also let me know in the
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comments which of these three stocks are you most
bullish about? With that being said thank you very
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much for taking the time to watch this video
and i hope to see you in the next one. Bye bye!
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