Value Investments can be hard to find. The companies that I will profile are all from big emerging economies such as China, Brazil, Indonesia, and Malaysia (to name a few). They are all real companies with consistent and growing revenue streams that have had valid audits. Let's find them together!

Tuesday, June 28, 2011

Rio Tinto: Steeling the Future

Rio Tinto, who I have talked about before is continuing to expand and grow.  As we head to the end Q2, it seems as if their expansion into other continents as (Australia and Europe) should show an increase in profits on the year thus driving their stock price higher.  It looks like it will break 72 a share as it is already shooting to 70.  Depeending on how well they are above expected in earnings, we could see a new 52 wk high here in the next few weeks!

Keep in touch!

Friday, June 24, 2011

Helpful Hedge

In light of Fed Chairman Ben Bernanke's comments earlier this week, I have been thinking a bit about what it means for the U.S. and its markets.  Wednesday's report given by "Big Ben" was nothing short of ominous and lethargic in my opinion.

As now the outlook has slowed to a growth rate of 2.5% per year and we are still seemingly light years away from unemployment being back down around 5%, investors need to start thinking about how to hedge their investments so as not to get bogged down and can still gain in a stagnant market.  Emerging Markets offer a greater growth potential as these countries are still growing at an expected 10% a year. 

The Fed resisted dumping another $600 billion into the market mimicking what they did last August. it shows that the U.S. has entered a time when the market needs to get back to standing as opposed to being propped up.  While, this is the best thing we could hope for, (as no one wants a market propped up by anything other than the free hand) it is going to be painful and slow going for the next few years as the market regains its walking strength before it can run.

Investing in emerging markets will produce a hedge against the short term U.S. economic state.  Look to China, Brazil, and India to lead this charge into the next few years. Many analysts have been coming out with rave reviews of Emerging Markets and the growth that they offer.   It would be wise to follow suit as we go into the Q2 earnings reports.  Keep an eye on VALE S.A., Asia Carbon Industries, and BioStar Pharmaceuticals. All three should have better than expected Q2 earnings and thus help drive the stock price up. 

Buy these stocks now and see what happens when they report!

Thursday, June 23, 2011

Questions Raised

I was listening to Business for Breakfast on 1060 am the other morning locally here in Denver and Tom and Woody were discussing a stock RYUN  Respect Your Universe.  This stock has been growing pretty steadily yet I can't find much of anything as to what they should actually be valued? 

RYUN posted no income in 2010 and took a lose in 2009?  They have a negative EPS based on ttm and for some reason have a rising stock price?

Is everyone banking on a Dana White type explosion with this MMA clothing brand?  While the MMA sport is growing rapidly and has taken the world into its grips as the action packed bloodsport that it is, most clothing companies that go public, outside of Ralph Lauren trade at most around $5 a share.  A similar clothing line that is public to look at would be Quiksilver (ZQK) since Tapout and Affliction (the two major clothing lines for MMA are privately held).  I chose Quiksilver since it is along the same vein as far as active sports.  Quiksilver has been around and is a leader in the surfing and skating industry for clothing. 

Outside of "well, this company should perform based on the rapid growth of the sport it is a part of" does anyone have a solid argument for why this is a good investment?  Let me know!

Wednesday, June 22, 2011

Another Rave Review about Chinese Investment Possibilities

One of the blogs I follow posted this up yesterday.  Its a first hand look at what I have been talking about.  Investing in China is a smart move.  It's an even smarter play if you get into the undervalued companies that are out there such as Asia Carbon Industries (ACRB), BioStar Pharmaceuticals (BSPM), and A-Power Energy Generation Systems (APWR). 

These companies lay in the realm that Hanson of the Motley Fool ( is talking about in his article.  These are real, innovative companies that have solid profits.  Money finds value, its only a matter of time before these stocks prices will reflect each companies actual value.  I suggest getting in now!

Remember, it's buy low, sell high!

Monday, June 20, 2011

Commodity Time

An article came out in the WallStreet Journal explaining how China has been investing hard in South America for agricultural reasons.  Basically, China knows that its urbanization is displacing some of the farmland that exists there and needs to support its populous with food from other countries.  Brazil and Argentina are the biggest recipients of more than 15 billion dollars for foodstock and raw materials for manufacturing.
In other words, China is expanding and looking to put its dollars into tangible goods now.  Why?  In my opinion, its due to a weakening Dollar on a global level and while the yuan is still pegged to the Dollar. China should get rid of their dollars, then let the yuan appreciate.  I say this knowing full well that it is a poor decision for China as all the American debt they bought will then be worth less than if they leave it attached to the dollar as it is now.
As an investor, look to invest in the Chinese companies that are growing and expanding.  The inverse is true to happen for investors in Chinese companies with American Dollars. Now is the best time to invest!

Thursday, June 16, 2011

Thursday Moves

Rio Tinto is making some moves as they announced that they will buy a in Riversdale Mining from Indian based Tata Steel.  I talked a little about Rio Tinto in a couple weeks ago and think that they are going to rise a bit back towards their 52 wk high of $76 over the next few months. 

On he flip side of this deal, I see Tata Steel (traded in Mumbai) to lose some ground.  While they may have a bit of a windfall for the buyout, they lose a stake in a solid mining operation in Australia.  As for Riversdale mining, Its expected to get delisted. 

On a slightly different topic, buy Asia Carbon Industries.  Remaining extremely undervalued, this will not stay this way for long.  As we quickly approach the end of Q2, ACRB is going to explode when people again see dazzling numbers that HAVE BEEN audited.  I have been consistently buying shares as this company is primed to jump!

More soon!

Wednesday, June 15, 2011

Bullish on China

An article from the WSJ yesterday discussed that while some Chinese companies have made investors scared to test the waters, there are those that remain worth it.  Guerilla Capital's Peter Siris makes it well known that he thinks while there are some issues in some Chinese firms, the fundamentals of some of these companies do not lie.

When I look at various single companies, I check to see that they are in SEC compliance, have become listed through a scrutinized process, and have real revenue and real profits.  As long as these things are consistent, there is not a need to lump all of the companies together.  Using glittering generalities to encompass an entire group of companies doesn't work, such as Chinese companies suffer from poor accounting regulations.  While there are some that do and some that don't is the more prevalent trend, some is not all. 

I think that if you look into where you put your money and do some due dilligence, then investing in China is not only smart, but a move that should be made in order to row you own personal wealth.  Ideally, every investment you make is safe since it must pass through some part of the SEC and there are normally others involved. 

In reality, investments need to be chosen like buying a house and then held onto so that the market as a whole will see the value in the company that you have found, like turning coal into a diamond.

More soon!

Tuesday, June 7, 2011

Iron Ore Producton Down Under

The steel industry is continuing to prosper worldwide.  I have touched on Brazil's VALE S.A. inn an earlier post and I still like this company to produce solid profits this year.  A rival in Brazil, Rio Tinto is also traded here in the U.S. but does not seem to carry the same amount of under value as VALE.

However, Rio Tinto is the worlds 2nd largest Iron ore mining house in the world and hopes to hit an output of 240 million tonnes this year.  With commodity prices rising to over $170 per tonne for Iron, low side that would mean revenue of over 40 billion compared to that of 39 billion last year.  Granted those numbers are gross are do not take into account the spending on expansion in Australia to help increase output for the next few years. More on this here.

Either way, these two mining conglomerates should stay on your radar as both are trading below where they should be.

Monday, June 6, 2011

Clean Coal

The week is starting off slow in the market as the DOW and NASDAQ were both down. One of the big movers today was a Colorado based, clean coal company ADA-ES Inc.  Here is a US. based company that appears to be undervalued at present.  (With the inclusion of the 50%+ gain today). ADA is a leader in clean coal energy.

Another undervalued stock in a similar arena is Asia Carbon Industries, who I have talked about before. It gained slightly toady, a modest 2% and should continue to rise.  I would strongly suggest getting into this stock now as it looks to move up soon! 

The idea is buy these two stocks now!