Stocks to Watch Archive

The Chinese government's goal is to provide basic universal healthcare for its entire population -- all 1.3 billion -- by 2020. As a result, the market value of China's pharmaceutical market is expected to jump to about $120 billion by 2020. So to take advantage of this dominant and growing market trend, an excellent trade right now is the leading supplier of traditional Chinese medicine. Shares recently pulled back, making now a perfect time to load up before the next leg up!

As China's standard of living continues to rise for much of its population, one area the government is especially focused on improving is healthcare. So let's take a look at how China has improved over the last 60 years -- and where they're headed for the future. Additionally, we've loaded the China Strategy portfolio with plays on China's push for better healthcare, so we'll go over three opportunities that I'm expecting to especially benefit from the healthcare initiatives that China has undertaken.

So far, China's insurance market has followed the footsteps of the U.S. insurance industry -- and where the U.S. was 20 to 30 years ago, China is beginning right now! As a result, we're presented with a perfect opportunity to invest in a cash-rich brokerage service that is poised to use its leading position to capitalize on the major consolidation I expect the industry to soon face.

We've often talked about how China's $586 billion stimulus package was vital to the country's quick recovery from the global slowdown -- and it also primarily benefited Chinese state-owned enterprises. But now the Chinese government is turning its attention to the country's small- and medium-enterprises. I'm excited about the proposal and the effects it will have on China's economy, including job creation and the continued spread of China's recovery.

Now, September is notorious for being a weak period for stocks -- but so far the global markets are holding up well. And China stocks are leading the way, along with the Shanghai A-Share market. What's helping China continue to lead the way? Well, they're regularly reporting economic data that points to a strengthening economy, confounding critics. The latest good news is an unexpected expansion in new lending and a faster-than-expected increased in industrial production.

After the worst financial and economic crisis since the Great Depression wreaked havoc on the world, most economies are looking for change. And in many cases, citizens have taken it into their own hands, electing new governments that they expect to bring about this "change." Just last week, Japan's ruling party, the Liberal Democratic Party, suffered defeated at the hands of the Democratic Party of Japan in the country's recent election. Whether this is a good move for the country is yet to be determined...

A crippling drought in China has left millions without water, as well as severely hurting crops and farmland. And the area and number of people affected are on the increase as the drought spreads due to blistering temperatures and no rain. At China Strategy we're investing in a company in the water treatment and purification industry that will literally save lives, as well as helping against future droughts in China.

China has been on a worldwide buying binge -- snapping up natural resources left and right. And one of my Asia Edge recommended companies just completed the largest foreign takeover bid that China has ever seen. That, coupled with the hot automotive market and rising demand for gasoline makes this company a sure -- and profitable -- bet.

I've been pounding the table about the bull market opportunities to be found in China's real estate market -- and I hope you've been listening. Real estate prices are soaring in major Chinese cities, and my readers at China Strategy and I have been taking advantage -- and one of my favorites just reported blowout earnings, which pushed the stock higher. I don't want you to miss out on the next leg up, because this one's poised to go higher, much higher. In fact, they're expecting 100% year-on-year growth next quarter!

The U.S. employment numbers are improving, but far too slowly. That's why the better investment opportunities are in China, where we can take advantage of the employment trend. Shares have already popped 70% in the seven weeks since I recommended this profitable opportunity! Don't miss out on the next leg up!

India is typically the first thing that comes to your mind when you think of IT outsourcing. But you might want to rethink -- China is seeing explosive growth in the outsourcing industry and I smell opportunity. Shares in my recommended company are already up 250% year-to-date! Don't miss out!

China is taking bold steps to overcome the global financial and economic crisis, which are not only spurring economic growth, but they're also creating jobs. Just this week the steel, automobile, finance and transportation industries announced their intent to hire more employees in response to revitalization plans. Real estate, hi-tech and retail are also increasing their hiring. This will all greatly benefit a company I recommended just three weeks ago that's already popped more than 28%!

After falling nearly 80% from their peak in July 2008, crude oil prices have started to move higher. Currently, oil per barrel is trading around $70 -- something I've been projecting all year long. To reflect the jump in crude oil prices, China's National Development and Reform Commission lifted retail prices for gasoline and diesel on Monday. This move bodes well for Asia's leading oil refiner. As the number-one supplier of gasoline and other oil products to China, this state-owned enterprise will benefit nicely from elevated oil prices. In the past three months alone, the company's shares have popped nearly 60%.

With expendable income expanding nicely in recent years, more and more Chinese are taking vacations to some of the hottest tourist destinations in China and all of Asia. This likely includes visiting the terra cotta museum in Xian, touring the capital city of Beijing and gambling in Macau. And like many Americans, the Chinese are turning to the Internet to book their flights, hotels and rental cars. China's leading online travel services company has been the biggest beneficiary of this trend -- shares are up nearly 80% year to date.

China's National Development and Reform Commission lifted gasoline and diesel prices on Monday to reflect the jump in oil prices since the beginning of the year. Crude oil is now trading near $70 per barrel. The move higher and the boost to retail prices bodes well for this Chinese offshore driller, which is already up 50% year to date.

After the tumble that most real estate markets around the globe took, I know it's hard to believe that any of them are on the verge of a turnaround. But considering the Chinese economy and the influx of bank lending occurring there today, China's real estate market is on track for a turnaround. And there are two great ways to play this rebound. My two China Strategy recommendations -- a Chinese developer and a Chinese real estate services company -- are directly in line to profit from this trend are up nicely this year -- 182% and 73%, respectively. Learn what's fueling this rebound and how you can start profiting today.

One of the hot topics in the technology sector this year is the U.S.'s switch from analog to digital transmission. What's interesting, though, is that other countries around the globe are also making this move. In fact, the Chinese government announced a mandate to broadcast all TV programs in digital format by 2010. This is creating an incredible investment opportunity in China's TV market.

The Chinese government continues to take advantage of the lower energy prices, creating deals to secure energy resources at low levels. These efforts were exemplified recently in the deals that Sinopec is working on with Brazil and Exxon Mobil. And these deals bode well for Sinopec's shares going forward.

While many investors are still shying away from putting their money to work in the current environment, I've been recommending that my Asia Edge subscribers pick up strategic trades in industries showing strength this year. One industry, in particular, that's caught my attention is technology. My latest recommendation is a Taiwan semiconductor manufacturer that's up 17% year to date.

Since the implementation of China's $586 billion economic stimulus plan, there are many companies that are starting to benefit from its implementation. One of these companies is China's leading producer of aluminum and alumina, as the plan will give a huge boost to improve China's infrastructure. This company is set to grow this year, making it a solid investment for us.