"For investors there's a silver lining to BP's stormy year. Despite bumper profits from record oil prices, BP shares have underperformed rivals such as Exxon, Chevron and Royal Dutch Shell, making the British giant an appealing value proposition. While Exxon is trading at 11.8 times next year's earnings, BP carries a multiple of only 9.8. "At the end of the day, BP has reasonable growth prospects and no longer trades at a premium," says Putnam's Byrne. Meanwhile, BP's multibillion- dollar stock-buyback plan and its 3.5% dividend offer further downside protection. Even if oil prices moderate, says Bear Stearns analyst Nicole Decker, "BP is among the rare few companies that will continue to grow organically at a reasonable cost." Plus, says Decker, 2007 should see a recovery in both the company's image and its financial performance as it puts Alaska, Texas and other trouble spots behind it. She thinks BP shares could hit $82 by the end of 2007, a 21% gain over the current $68."

"Rising oil prices may have grabbed the spotlight in recent years, but they're only a small part of the global commodities boom. Metals have appreciated even faster. Copper has nearly tripled over the past year, as demand from China and other emerging markets has soared. Mining stocks have jumped as well, but few companies are better positioned to benefit than Britain's Rio Tinto. With huge operations in Australia (shares are listed in both London and Sydney), Africa and the Americas, Rio Tinto expects revenues this year to grow 25% compared with last year's, while profits should finish up more than 50%."

"...Credit Suisse, is well known in the U.S. as a major player in investment banking, but back home in Switzerland, says Putnam's Byrne, it has long played second fiddle to UBS because of the latter's dominance in wealth management. Now that's changing: Credit Suisse sold its slow-growth insurance business, Winterthur, to AXA for $10 billion this summer and is focusing on its own wealth management business while boosting margins at its U.S. investment bank. The Zurich giant has also launched an aggressive stock-buyback program, with the goal of snapping up nearly $2 billion of its stock, or 3% of outstanding shares, by next April."

"While Credit Suisse has been refocusing on its core business, Spain's Banco Santander has been riding an expansion wave that has made it the biggest bank in the eurozone. Earlier this year it acquired Britain's Abbey National, boosting an international profile that also includes such rapidly growing Latin American markets as Brazil, Mexico and Chile. In addition, Santander is thriving because of the boom in its home market, where economic growth over the past ten years has averaged 3.6% annually, nearly twice the rate of other European countries. Morgan Stanley analyst Pablo Beldarrain Santos, who rates Santander his top pick among Spain's banks, expects earnings to jump 25% this year and 20% in 2007."

"Although Veolia has been in business in France for more than 150 years, its name may be unfamiliar even to investors who follow European business. Formerly the water-supply and environmental- services division of Vivendi, Veolia was split off and renamed in 2003. Since the split from the entertainment side of the business (which retains the Vivendi name), Veolia has thrived, nearly doubling over the past two years on strong growth in its utility business in France and around the world. In the U.S., for example, Veolia supplies drinking water in Indianapolis and wastewater treatment at Kentucky's Fort Knox. Earnings growth for 2006 is expected to top 30%, while revenues are rising at a 20% rate."

"Now in the midst of a turnaround, Philips agreed in August to sell 80% of the chip business to private-equity buyers for more than $10 billion, freeing up cash for higher-margin divisions such as medical devices, as well as an aggressive stock-buyback program. With this transaction, says Brugere, "volatility has been reduced, multiple expansion is taking place, and management is doing what it has promised in terms of restructuring." Wall Street has taken notice: Philips shares have rallied since the August deal, rising from $30 to more than $37, and the company has boosted its multiple to roughly 22 times 2007 earnings. Even so, says Brugere, there's still an upside of 20% as this Dutch giant cuts costs, drives shareholder returns, reallocates capital, and earns new respect from the Street."