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!