Stocks to Sell Archive

Coal demand simply exploded in early 2009 -- doubling the share price of our play on China's astonishing economic growth and energy demand. We picked up this company at rock-bottom prices in expectation of the boom driven by China's stimulus package. But now, with China reopening idled coal mines, coal prices are likely to fall, curbing profits for the company and jeopardizing the rally that we've enjoyed so far.

Though this state-owned enterprise remains the world's largest telecom provider, the company's growth has faltered in recent months. Primarily, this is because of an increasingly-saturated market and the rise of intense competition for wireless customers in China. As a result, I think it's time to take our gains and move on to more profitable opportunities in China.

Dining out is huge in China -- which is why I recommended Yum! Brands to my China Strategy subscribers some time ago. However, it's now time to take profits due to increased competition and a dimming of YUM's prospects. Their last earnings report was still positive, but showed a definite slowing in growth. However, I still smell opportunity in China!

The World Bank's projection for the global economy, as you know, sent global stock markets spiraling lower earlier in the week. Many of these markets bounced back later in the week, including Japan. Despite the Japanese stock markets rebounding, I still believe that Japan is still suffering from a deep recession that will last through this year and into 2010 -- a fact that will likely weigh on the country's stock markets.

India's stock exchange has taken great strides so far this year, rising around 23%. And many people have asked me if that means it's time to start investing in India again. But I still see a number of trends that are weighing heavily on India's economy and will likely hamper economic growth there in the months ahead.

Ever since the end of 2008, the relationship between Israel and Palestine has been strained. After Palestinian militants fired on Israel, Israel returned fire with air attacks on the Hamas-ruled Gaza Strip. As long as the conflict continues, it will likely weigh heavily on the region's economy and stock markets.