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Andrew T. Gillies is Director of Communications at the Center for Audit Quality, an affiliate of the American Institute of CPAs, in Washington, DC. Based in Washington since 2002, he has also worked in editorial and communications roles at the Investment Company Institute, the World Bank, Forbes, and Vault.com. His policy-themed writing has focused on aerospace and defense, energy and environment, transportation, and financial services.

Wednesday, July 02, 2008

Seven Cheap Global Stock Picks

Raymond Mills can't talk about the job he held before signing on to T. Rowe Price. Literally. With a doctorate in aerospace engineering from Stanford University, he worked on some sort of national security-related program until a decade ago. "It was classified," is all he'll say.

Less spooky is the way the manager of T. Rowe Price's $1.5 billion (assets) Overseas Stock Fund picks stocks. Some of Mills' selections are household names. Others are practically unpronounceable. All, in his view, offer above-average earnings growth--thanks to superior products, market dominance or exposure to fast-growing economies--at reasonable prices. For investors, that adds up to a way to ride out and profit from the market's current volatility.

Toyota Motor (nyse: TM - news - people ), a Mills favorite, is a good example. "Honda and Toyota are leaders in hybrid technology and fuel efficiency," he says. "They're going to be winners over time."

Long-term promise aside, Toyota shares are down 20% from a 52-week high amid the malaise in the global auto business. That has left the stock selling at nine times latest-12-month earnings, versus a five-year average of 13.

"Maybe we don't think it's going to be a great stock for the next year," he says of many of the shares he tucks away, "but we think it's going to be a great story over the next two to three or five years."

Full story at Forbes.com