How to Profit This Earnings Season

Robert Hsu, July 28, 2009

In this Issue:

Better-Than-Expected Earnings Drive Shares Higher
Impressive Earnings Results
China's Strength Spurring Asian Economies Forward
Invest in Taiwan Today
Bet on China's Housing Market Boom

Impressive Earnings Results

On July 21, my recommended Chinese education services company announced fourth-quarter results with net revenues rising nearly 48% and net income jumping almost 50%! The solid quarter is due to growing student enrollment, as this company currently has about 1.5 million students in its school, which represents a 19.5% increase.

Following the positive earnings announcement, this company's shares rallied higher, gaining 10% in the past week.

And the picture was just as bright for China's Google. This online search engine noted on July 23 that its profit in the second quarter surged nearly 45% and revenues jumped about 37%. Much of the strength in the quarter was related to a boost in retail spending from the Chinese government's stimulus package.

The company also noted that it expects revenues to increase 15% to 18% in the third quarter, much faster than market forecasts. After such a strong earnings report and positive outlook, shares leaped 7% higher in the past three trading sessions.

So, as I said before, I hope you followed my advice and were able to buy in, snatching up a quick 7% to 10% in just a matter of days. If not, don't despair -- it's not too late to take advantage of the opportunities in these two companies. Learn how to get started today.

Or even better, another China Strategy recommendation is set to report second-quarter earnings in early August. And now is your chance to get on board before the next leg higher.

China's leading online consolidator of hotel rooms and airline tickets has been benefiting greatly from the rise in tourism in China as of late. On my most recent trip to the region, I was able to observe this firsthand, as popular tourist destinations like Xi'an and Sanya were now crowded with Mainland Chinese. In fact, customers at Sanya's five-star hotels now outnumber foreigners as much as four-to-one.

Because of the booming tourism industry in China, this travel company has been profiting nicely. Back in May, the company reported first-quarter results with revenues up 18% and income jumping 23%. And the company projected 10% to 15% growth in the second quarter.

Following the impressive first-quarter report, this company's shares popped 14% in one day!

Now the company is set to report second-quarter earnings early next week, and I'm anticipating another solid quarter. Chinese consumers continue to spend, making the picture very bright for this travel company.

Don't miss out!

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