Gary Motyl of Templeton is Bullish – Likes BP (BP) & Sanofi (SNY)

Gary Motyl of Templeton Global Equity was the Market Monitor on Friday, March 19, 2010, on Nightly Business Report. Motyl is generally bullish.

“While you have had some valuation pressure over the last 12 months, we're still finding value in literally every industry and sector around the world. We're really not finding overvaluation to any great degree, although I would say the move in the emerging markets in the last 12 months has taken some of that off the table,” Motyl said.

Commenting on the chances of global recovery Motyl had this to say:

“Well really, from our perspective, the recovery has gained strength. If you look at the emerging markets, China, India, etc. they’re doing quite well. While the recovery in the United States and Europe is a bit tepid, I think in total, things are back on track. You can look at things like company surveys in the United States, trucking, chemicals. You can look at the level of consumer spending which is actually now, in nominal terms, above the rate of 2008. Overseas employment has rebounded in places like Australia, Japan and China, as well as Australia. “

Motyl thinks the sell off in Europe is over done.

“We think the recent pullback in Europe does give one an opportunity. We think some of the concerns there are a bit overdone and when looking at it from a bottom-up perspective, you've got a couple of stocks there that look quite attractive.”

Motyl recommended BP (NYSE:BP)

“This is a great total return stock in our opinion. You have a multiple of nine times earning, dividend yield in excess of 6 percent and globally diversified. I think the recent deal with Devon is extremely interesting. Here is a company that's being very opportunistic. A strong balance sheet, good management team and they are taking this opportunity to buy some offshore assets, Brazil, Azerbaijan, the Gulf of Mexico. They're really setting themselves up for the next five to 10 years, again, an excellent total return in our opinion.”

Motyl’s other recommendation was Sanofi Aventis (NYSE: SNY) He had this to say about it:

“One of the reasons valuations in that area are so depressed is because people are concerned with patent issues. And while that will be a drag for the next two years, there is good opportunity beyond that. Sanofi has positioned themselves to be a primary player in the diabetes treatment market. That's going to be an area which is going to see huge demand growth in the next five to 10 years.”

Motyl doesn’t own the stocks personally, but holds them through the various Templeton funds.