From boob jobs to Mr Potato Head: Five US stocks to beat the downturn

Monsanto is one of the world’s largest seed distributors and has a dominant position in the production and marketing of genetically modified seeds. It has developed a large portfolio of premium seeds, but has lost market share after being over-aggressive on pricing. A profit warning on the sales of its weedkiller ‘Roundup’ has also hit the overall group’s stockmarket performance over the past six months, but Ewing believes the de-rating has been overdone.

‘The shares now represent excellent value given the growth in their main markets,’ he says. ‘As the world population grows, and demand for grain rises, farmers will need to improve the performance of their land, and Monsanto are one of the only companies to have made sustained, serious investment in the area of seed technology.’

Hasbro

Hasbro is one of the largest toy makers in the world and owns the rights to several leading franchises, including Mr Potato Head, to Transformers, My Little Pony and Pokemon. Ewing says the company has been very successful in tie its product lines into popular media, such as with the success of the Transformer films.

‘The company is now working this media-based strategy towards a logical conclusion by instigating a joint venture with TV company Discovery,’ he says. ‘Hasbro will in effect have its own channel, which will allow it to make money from advertising its products. We expect to see valuable synergies from the deal, and the channel to develop into a popular destination for children’s programming.’