European Bargains?

Not sure if all my readers have been to Europe, but it is expensive.  At least the areas I have tended to go.  It is super neat. But food and lodging can be pretty pricey.

How about European stocks?  I know, I know, Europe is in a recession.  But guess what?  The US was in a recession in 2009 and that actually turned out to be the best possible time to buy stocks in US companies.  Barron's made their case this weekend (Europe's Economy Will Rebound).

So if you believe this thesis, who should you buy?  Well, I guess a quick place to look is financials.  Certainly many of the US Financials were at their very bottom in 2009.  If we think about price to book value, the following financials look inexpensive:

IRE: 0.61
DB: 0.58
RBS: 0.50
BCS: 0.69
SAN: 0.70

If we think about MFI, here are top 50 European per my last analysis:

Ticker	Rank	Stock Price	Market Cap	Earnings Yield	ROIC	Dividend Yield	Country
AZN	1	49.58	61,975	13%	142%	5.7%	Europe
TARO	2	59.36	2,657	17%	108%	0.0%	Europe
STX	3	46.68	17,225	15%	102%	3.0%	Europe
WCRX	4	19.93	5,006	10%	396%	22.8%	Europe
CTCM	5	12.41	1,963	12%	103%	4.6%	Europe
FORTY	6	22.69	317	12%	90%	1.6%	Europe
AVG	7	20.83	1,138	8%	778%	0.0%	Europe
FWLT	8	21.91	2,293	11%	65%	0.0%	Europe
ITRN	9	16.99	356	10%	71%	4.9%	Europe
ACN	10	75.52	53,996	8%	469%	2.2%	Europe
STO	11	21.43	68,186	42%	37%	5.4%	Europe
CHKP	12	54.15	10,970	7%	2000%	0.0%	Europe
TI	13	6.51	12,594	14%	39%	3.8%	Europe
LYB	14	70.00	40,460	12%	39%	6.4%	Europe
BTI	15	105.61	102,917	7%	128%	3.9%	Europe
IOSP	16	42.67	1,025	9%	52%	4.7%	Europe
ALV	17	81.80	7,836	10%	42%	2.4%	Europe
OFIX	18	27.96	551	16%	30%	0.0%	Europe
MBT	19	20.07	19,960	11%	35%	4.8%	Europe
VIP	20	10.38	16,805	12%	34%	19.1%	Europe
TEVA	21	39.56	33,863	10%	44%	2.9%	Europe
LXFR	22	16.70	467	13%	30%	1.2%	Europe
ENL	23	35.44	13,150	7%	16301%	3.4%	Europe
COV	24	59.52	28,332	8%	51%	1.5%	Europe
TOT	25	50.47	114,594	18%	23%	6.0%	Europe
TKC	26	14.72	12,954	10%	30%	0.0%	Europe
SNN	27	59.00	10,726	8%	45%	2.2%	Europe
E	28	42.08	76,224	22%	21%	6.6%	Europe
EVAC	29	8.30	937	9%	38%	0.0%	Europe
WPPGY	30	90.63	24,517	6%	159%	2.4%	Europe
CEL	31	9.76	972	10%	29%	0.0%	Europe
GSK	32	52.96	128,349	7%	66%	4.4%	Europe
IR	33	59.09	17,875	7%	55%	1.3%	Europe
SAP	34	75.16	89,816	6%	242%	1.5%	Europe
NVO	35	164.65	89,685	6%	135%	1.9%	Europe
BBL	36	54.11	144,420	12%	21%	4.1%	Europe
ERIC	37	12.07	39,276	8%	39%	3.6%	Europe
DLPH	38	54.93	17,323	8%	38%	0.6%	Europe
ESLT	39	42.85	1,802	9%	28%	2.8%	Europe
TEL	40	47.46	20,123	8%	38%	1.9%	Europe
PSO	41	18.95	15,266	6%	86%	3.6%	Europe
ABB	42	22.53	51,887	8%	41%	3.3%	Europe
TS	43	43.10	25,441	9%	27%	2.0%	Europe
FMS	44	32.71	20,142	8%	35%	1.5%	Europe
BT	45	51.36	42,161	9%	24%	2.7%	Europe
SI	46	107.33	91,419	7%	40%	3.6%	Europe
MLNX	47	51.66	2,216	5%	99%	0.0%	Europe
CBI	48	61.30	6,345	6%	63%	0.3%	Europe
IHG	49	29.74	8,684	6%	57%	0.0%	Europe
RDWR	50	14.94	702	4%	196%	0.0%	Europe

Now one needs to look at this list with a keen eye.  Many companies here are not traditional European companies that would be leveraged to a rebound in Europe.  STX (Seagate) and ACN (Accenture) are obviously more global/US Centric companies.