Five Ways to Profit in a Global Economic Downturn

Robert Hsu, June 23, 2009

In this Issue:

Two Ways to Profit from Chinese Energy Demand
China's Top Two Energy Plays
Top 3 Trades for Profiting in a Global Recession
Top Three China Trades Today
Featured Stock: China's Leading Online Game Developer

China's Top Two Energy Plays

There are two Chinese energy companies, in particular, that are presenting incredible investment opportunities right now. Let me give you a sneak peak…

Energy Winner #1: To keep up with expanding demand, the Chinese government has reached out to other oil-producing countries and made strategic deals to secure energy assets. For example, back in February, China agreed to lend Russian oil companies $25 billion in exchanged for 300,000 barrels of oil locked in at a contract price of $28 per barrel for 20 years. Talk about great timing!

Along with more deals like this in the coming months, I look for Chinese oil companies to gain access to even more foreign oil. We'll likely see more and more energy exploration and drilling projects pop up now that it makes more economic sense with oil prices between $60 and $70 per barrel.

This trend benefits China's leading offshore driller -- it's a well-run, state-owned enterprise with monopoly drilling rights in the country's oil industry. The company is currently expanding its operations outside of China, collaborating with Brazil's Petrobras.

China's leading offshore oil driller shares have climbed nearly 40% higher in the past six months! Don't miss out on the next leg up -- join China Strategy today!

Energy Winner #2: I'm so excited about the oil industry revving up again that just two weeks ago I added a fast-growing pure play on China's growing energy demand to the China Strategy portfolio. This company is benefiting particularly from the new oil and gas exploration projects around the globe.

That's because it's an oil services equipment company, and is the third-largest manufacturer of oil country tubular goods (seamless casing, tubing, drill pipe and connectors used in oil and gas exploration). Overall, this company has everything I look for in a Chinese growth stock: high growth rate, dirt-cheap valuation, support from government policy, strong management, and even a high cash dividend yield.

Since I recommended the company, shares have jumped nearly 10%. And that's just the beginning -- I'm expecting more than a double in the next six months. Get on board now -- join China Strategy today!

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