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Emerging Markets Still Have Their Stock Plays

The emerging markets aren't what they used to be, but four-star fund manager David Lazenby says they still hold lots of promise for investors.

"You're at a slight valuation discount now, roughly in line, no longer the discounts of the past, but you're still getting better growth, and the valuations are certainly not what I would describe as expensive today," Lazenby told CNBC.

His Legg Mason Emerging Markets Fund is up an average of 38.3 percent per year over the last five years.

His first stock pick is Mexico-based, Latin America-focused mobile telephone service provider America Movil.

"They have just recently rolled out 3G technology in their regions," he said. "There is a significant upside opportunity with regard to usage, still, in Latin America."

America Movil currently has about 150 million subscribers and expects to add another 20 million this year, and Lazenby expects to see improvement in minutes of usage as the new technology is rolled out.

He also likes South Korea-based LG Philips.

"LG Philips, very simply, is the leader in LCD display technology for TVs, computer monitors, cell phones, et cetera," he said. "They also are right now experiencing an opportunity for an attractive growth environment in display-panel pricing, and more competitiveness with the Japanese competitors, because the Korean won has recently devalued against the Japanese yen by about 20 percent over the last month."

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