Top China Companies To Own For 2014

There's an ironic trend occurring among big multinational corporations.

For most of the last decade, investors scooped up stocks that had big international exposure with the idea that they would provide a hedge against a weakening dollar. Companies that do most of their business overseas, like Coca-Cola (NYSE: KO  ) (73% overseas), Philip Morris International (NYSE: PM  ) (all overseas), and Intel (NASDAQ: INTC  ) (85% overseas), looked compelling as a hedge against the U.S. economy's faults.

But now the dollar is strengthening.

And Europe is a mess.

And China's economy is slowing.

What's it mean for the economy, and for sectors with big international exposure?

Last week I asked Liz Ann Sonders, chief investment strategist at Charles Schwab. Here's what she had to say (transcript follows).

Top China Companies To Own For 2014: Abacus Mining & Exploration Cor (AME.V)

Abacus Mining & Exploration Corporation, an exploration stage company, engages in the acquisition, exploration, and development of mineral properties in Canada. The company, through a 20% interest in KGHM Ajax Mining Inc., holds a 20% interest in the feasibility stage Ajax copper-gold project located near Kamloops, British Columbia. Abacus Mining & Exploration Corporation was founded in 1983 and is based in Vancouver, Canada.

Top China Companies To Own For 2014: Airgas Inc.(ARG)

Airgas, Inc., through its subsidiaries, distributes industrial, medical, and specialty gases, as well as hardgoods in the United States. The company offers various gases, including nitrogen, oxygen, argon, helium, and hydrogen; welding and fuel gases, such as acetylene, propylene, and propane; and carbon dioxide, nitrous oxide, ultra high purity grades, special application blends, and process chemicals. Its hardgoods products comprise welding consumables and equipment, safety products, and construction supplies, as well as maintenance, repair, and operating supplies. The company also engages in the rental of gas cylinders, cryogenic liquid containers, bulk storage tanks, tube trailers, and welding and welding related equipment. In addition, the company manufactures and distributes liquid carbon dioxide, dry ice, nitrous oxide, ammonia, refrigerant gases, and atmospheric merchant gases. It serves repair and maintenance, industrial manufacturing, energy and infrastructure co nstruction, medical, petrochemical, food and beverage, retail and wholesale, analytical, utilities, and transportation industries. The company operates an integrated network of approximately 1100 locations, including branches, retail stores, packaged gas fill plants, specialty gas labs, production facilities, and distribution centers. Additionally, it provides retail solutions to retail customers, such as florists, grocers, restaurants and bars, tire and automotive service centers, and others. The company markets its products through multiple sales channels, including branch-based sales representatives, retail stores, strategic customer account programs, telesales, catalogs, e-business, and independent distributors. Airgas, Inc. was founded in 1982 and is based in Radnor, Pennsylvania.

Advisors' Opinion:

• [By Tom Bishop]

  Airgas Inc. (NYSE:ARG) was also the subject of a takeover bid, this one a little unwelcome. The company received a bid from Air Products (NYSE:APD) at $60 per share, a 38% premium from where the stock had been trading.
  
  Airgas rejected the offer claiming that the offer "very significantly undervalues Airgas and its future prospects and is not in the best interests of Airgas stockholders." Airgas finished up 39% in February 2010, and is currently trading at $65 per share as the market is anticipating a possible higher bid.

Top Stocks For 2014: Power Integrations Inc.(POWI)

Power Integrations, Inc. designs, develops, manufactures, and markets proprietary, high-voltage, analog, and mixed-signal integrated circuits (ICs) in the United States and internationally. The company offers alternating current to direct current power conversion products, including TOPSwitch, TinySwitch, and LinkSwitch that addresses power supplies ranging from less than 1 watt of output up to approximately 50 watts of output. These products are used in mobile-device chargers, consumer appliances, utility meters, liquid crystal display monitors, standby power supplies for desktop computers and televisions, and other consumer and industrial applications. It also provides various products for use in applications up to approximately 500 watts of output, such as Hiper family power-conversion and power-factor-correction products for high-power applications, including main power supplies for desktop computers, televisions, and game consoles, as well as light emitting diode stre et lights; CapZero and SenZero, which are designed to enhance the energy-efficiency of power supplies and reduce standby consumption by eliminating particular sources of power waste within a power supply; and high-voltage diodes comprising Qspeed diodes. In addition, the company offers high-voltage DC-DC products comprising The DPA-Switch family of products that are monolithic high-voltage power conversion ICs for use in power-over-Ethernet powered devices, such as voice-over-Internet protocol phones and security cameras, as well as network hubs, line cards, servers, digital PBX phones, DC-DC converter modules, and industrial controls. It serves communications, consumer, computer, and industrial electronics markets. The company sells its products to original equipment manufacturers and merchant power supply manufacturers through direct sales staff and a network of independent sales representatives and distributors. Power Integrations, Inc. was founded in 1988 and is based in San Jose, California.