"Construção" de proposta de reforma da lei laboral vai para consulta "definitiva" de parceiros, anuncia ministra

[Keyser Soze]

Searching For Undervalued Growth
The basic theme for next year is investment in the more mature sectors with strong fundamentals, relatively cheap valuations and - not least – capability to grow earnings despite slowing economic growth. These attributes are most easily found in healthcare, oil services, technology, insurance and telecoms. Our recommendations rely primarily on our sector ranking model which compares a number of key metrics across peer groups. For 2007, we’ll also look toward the potential target companies listed above.

Healthcare
Although the political environment overseas could represent more of a challenge going forward, managed health care and pharmaceuticals are both positioned for strong growth. With plenty of room for multiple expansion and obvious demographic catalysts for years to come, this group should outperform. Recommended stocks:
• Europe: Novartis, Glaxo Smithkline.
• US: Alpharma, King Pharma, Perrigo, Aetna, Humana, CVH.
• Asia: Dainippon Sumitomo Pharma, Il Dong Pharma.

Oil Services
There’s extremely deep value to be had here, both in Europe and the US. The group is trading at compelling P/E discounts and longer-term demand for drilling etc. remains firm. Investor focus should ultimately turn to the sector’s impressive valuations, less on energy market price action and its impact on share prices. Recommended stocks:
• Europe: Saipem, Aker Kvaerner.
• US: Patterson UTI, Helmerich & Payne, Unit Corp, Apache, Nabors Industries.

Technology
It’s all about capex spending here and we see the cycle continuing well into 2007, which should support most areas of technology. Stock-picking is of the essence and companies with pricing power and those positioned to scoop up market share should be preferred, as they offer a cushion to the broader economy. Recommended stocks:
• Europe: CSR, Tietoenator.
• US: Avaya, General Dynamics, Sanmina-SCI.
• Asia: NEC Mobiling, NS Solutions, Isupetasys, LS Industrial Systems.

Insurance
Valuations are more attractive in Europe, and stricter solvency standards pushed by the EU will be an important catalyst in the mid-term. 2006 has been a very quiet year and premium payouts modest – this could change in 2007. Still, excellent balance sheets and near-perfect execution should only bolster market sentiment in this group. Recommended stocks:
• EU: Munich Re, Swiss Life
• US: LandAmerica Financial, Selective Insurance
• Asia: Mitsui Sumitomo Insurance, First Fire & Marine Insurance.

Telecoms
Fixed line companies face a number of challenges from new and emerging technologies, and market chatter on the subject is unlikely to fall silent next year. Regardless, sector consolidation and the possibility of leveraging customer bases to new and richer content is a decent investment case, and valuations are far from excessive. Recommended stocks:
• EU: France Telecom, Mobistar.
• US: Sprint Nextel, Verizon, Cincinnati Bell.
• NTT Docomo.

Cyclical stocks, consumer-oriented and most financial companies will be underweighted by us, owing to our cautious stance on the economic outlook. Utilities, a strong performer in 2006, are likely to see yet another solid year but valuations are beginning to look stretched, as M&A activity has pushed share prices beyond reasonable levels. Noting also the political risks (not least in the Eurozone), we have chosen to underweight this sector. Natural resource stocks could also have a strong 2007 and we certainly like the supply-demand equations for most industrial metals. But considering the risk of a broader economic slowdown toward the end of next year, share prices for this space will likely trade lower, so we retain a neutral stance.

[Keyser Soze]

For those of you who did not watch the "10 Outrageous Predictions" by the Strategy Team, CNBC has uploaded it to their website

http://www.cnbc.com/id/15840232?video=159594544&play=1