Good time to invest in cos with dollar earnings: EM Cap

It has been a washout week for global markets as most developed and emerging markets lost 4-5% this week.

In an interview to CNBC-TV18, Seth R Freeman, CEO of EM Capital Management, LLC says investors should look to invest in Indian companies that may have dollar earnings. Below is an edited transcript of Freeman's interview on CNBC-TV18. Also watch the attached video. Q: We have hit a roadblock with respect to positive catalysts and Europe keeps weighing heavy on the markets. Do we have to brace ourselves for more weakness?
A: There is so much uncertainty. The European Central Bank (ECB) keeps going back and forth about its policies. Last week, they said they were done giving Greece money and today they implied they would continue to support Greece. Q: So in effect, what should the positioning be for an equity market investor now? Should you be putting some money to work in stocks that are sitting on distressed valuations or should you just be waiting it out because of the concerns across the world?
A: To look at selective companies, it depends on the investors’ timeframe. If they are long-term investors, may be they don’t want to go in with both feet right away. They might like to use this as an entry point to begin accumulating shares for the long-term or to increase their portfolio, especially Indian companies that may have dollar earnings. Q: What particular Indian companies are you talking about?
A: I usually don’t say specific companies, but Tata Motors, Infosys — it is not the most popular right now — Wipro. Also, may be some of the companies that manufacture or export healthcare-related equipment – those kinds of companies.