Wednesday, June 17, 2009
* Part 2 Investing : China
Part 2 Investing : China
Ok China you have heard all of the good things about investing here for the future, well I'm sure they will be greatly powerful in the next 50 years or so, but they maybe too large for their own good (and I'm sure they will have lots and lots of growing pains!), but nevertheless alot of money is going to be made here.
Here are some of my favorite picks, I've researched high and low to find good quality stocks in China. These are some of the ones I will buy when we finish this bear market, keep in mind China's stock market will likely bottom at different times than US market (it might have bottomed already!)
China Aluminum (ACH), Top notch aluminum company in China, don't really need to say much more, great investment for the future of the mighty China juggernaut. This stock was under $10 just a few months ago and came close to touching $30 just last week! I'd wait for significant correction and buy some up. Not sure if they have a dividend, if they do all the better, can anyone confirm this?
China Life Insurance (LFC), Biggest life insurance company in China, nothing but growth for the future, everyone needs life insurance. They have 1% dividend yield right now also. Great large cap for consistent growth rates.
Ctrip.com (CTRP), China's online travel company. With the expansion of China's middle class they are traveling more and more. CTRP taking full advantage of this, 0.6% yield right now. Stock has doubled in a few months so I would wait for significant correction to get some.
Baidu (BIDU), You most likely have heard of this one, this is China's version of Google, with a potential of a billion people surfing the internet this can be pretty exciting. Stock has tripled in 6 months, if u can get it on the cheap go nuts! Its a tad pricey, but you know what they say - buy it high and sell it higher! If I never bought Google back in 2004, I would have missed out on 300% gains, people thought I was nuts buying Google after it doubled in such a short time (I bought it at $150). They were so wrong!
China Education Alliance (CEUA), Here's one you probably haven't heard of, they are a online education company for China, more and more people getting their education from home on their internet connection. Great play as China has over a billion people ;) This stock is trading under fair EPS value using Warren Buffet's intrinsic value formula. I've had this stock for awhile its tripled in value in a few months, again you might want to wait to get some.
China Industrial Waste Management (CIWT), Garbage removal company, seems like a great idea to invest in something that is needed everyday, with a population like China I like my odds on this one, again they are trading under current intrinsic value according to Warren Buffet's formula. This one I would get some right now and hold. It's ready to pop real soon.
China Agritech (CAGC), Another small cap in China you probably have never heard about, (well thats why you got me right?) ;) I found this one just one day scouring the net for potential investments in China. This one is trading under intrinsic value as well. They manufacture and sell agriculture products and fertilizers. Again a no brainer when your looking at growth in China, people need to eat and this is one that will continue to grow in the future. The profit margins are consistent and of course any american company would die to have their rates (20%+) This stock has quadrupled since start of the year, so you can see the value in some of these stocks I'm telling you about.
These are a few of my favorite picks, again I have no affiliation with these companies and please do your own homework before you take my advice and purchase some of these stocks, set stop losses just in case you don't get wiped out with the small caps, cause they sure can move very quickly. Also with these stocks I have long term outlook, I can hold these if the market shuts down for 10 years and comes back, you should have the same discipline.
Tell me what you guys/gals think, do you have any recommendations that anyone reading might like to research themselves?
My next lesson will be Part 3 Investing : Canada
Cheers till next time!