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 (www.fool.com) 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!
Wednesday, June 22, 2011
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!
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!
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!
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.
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!
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!
Saturday, May 28, 2011
Inflation and the Chinese Domino Effect
Societe Generale released a report entitled "The China Domino as Fallen" in which analysts describe three main points:
- Domestic inflation: China is switching to a consumer driven economy which means more domestic demand. Supply remains constant, so prices rise.
- China exports inflation: Chinese demand for oil and steel has pushed prices up in those marketsand made other commodities rise as well.
- China demand shock: The country's long-term economic re-balancing will result in a permanent increase in global demand. Supply is sticky, and it will take time for it to catch up, thus limiting the world's ability to cope with this rise in demand.
- Domestic Inflation: China is switching to a consumer driven economy which means more domestic demand and supply will rise because of it. Prices, while they may go up, will be pushed back with more production to meet these demands. As far as China is concerned, their domestic inflation would be more tied to a failing dollar (which the yuan is locked onto) than an inflationary mark due to demand.
- China Exports Inflation: China's entrance into the higher demand category when it comes to oil and steel is only natural for a developing country. In a global market, more demand means higher prices for limited commodities. As the prices are driven higher, smaller countries will get squeezed and those who cannot afford to pay the higher prices will fall out and then prices will trend back down so they can buy. In essence, as "Emerging Economies" grow and stabilize, prices for everything globally will go up. Standards of living increase as wages increase as prices increase. If your dollar is only worth a dime in 10 years then shouldn't you be making $10 to $1 in the next decade for your own production as well?
- China Demand Shock: "The country's long-term economic re-balancing will result in a permanent increase in global demand. Supply is sticky, and it will take time for it to catch up, thus limiting the world's ability to cope with this rise in demand." I DO NOT agree with this. The world and global markets will be able to cope with the rise in demand just fine. As higher demand is what the world needs. The question becomes, where is the offsetting production to pay for the new demand? If there is simply continued money printing and credit use to pay for the demand, while fine for the short term, it needs to be reinvested and thus creating more production or supply to meet the demand. China will be able to keep up with itself as it grows. We need to be looking there to help pump some of our own capital in so when the rise, our capital also grows.
Subscribe to:
Posts (Atom)