Earnings Season Presents More Ways to Profit

Robert Hsu, August 04, 2009

In this Issue:

China Leading the Charge this Earnings Season
Today's Earnings Opportunity
More Solid Results Equal Quick Profits
Three Ways to Profit on Friday
One of the Hottest Industries in China Today

Three Ways to Profit on Friday

What's great about the three Asia Edge companies set to report earnings on Friday is that all are directly benefiting from China's stimulus package. And that means they've profited nicely over the past three months as the stimulus plan kicked in and the Chinese economy recovered from the global economic crisis.

Here's how they're benefiting:

1) China's largest transportation information service provider: About $195 billion of China's $586 billion stimulus package is being dedicated to transportation infrastructure, primarily to build new highways. What's interesting is that despite the incredible growth in China's roadway infrastructure, traffic monitoring technology is largely underutilized -- only 1% of highway investment is related to IT solutions. So traffic congestion is becoming a serious problem in China's cities. To help eradicate this growing problem, this company provides real-time traffic monitoring systems. Due to growing demand for its traffic monitoring technology, the company reported a 40% increase in sales during the first quarter. Shares are up 37% in just four weeks.

2) The second-largest travel services provider in China: As we discussed earlier, China's tourism industry is simply booming, as China's stimulus package has boosted domestic consumption and more Chinese are traveling. This company focuses on both international and domestic travel, providing packaged deals that include airfare and accommodations. Considering that packaged tours account for more than 50% of the tourism market in China, you can see why this company posted a 72% increase in revenues during the first quarter! And looking forward, management expects growth of more than 20% this year. Shares are up 39% in two months.

3) China's version of Monster.com: Despite China's economic strength through the global financial crisis, its economy wasn't completely unscathed. In fact, China watched its unemployment rate rise like most nations around the world. As a result, millions of Chinese migrant workers and college graduates are seeking employment opportunities – and the majority of these are turning to Internet job sites. This bodes extremely well for this company, as it has the number-one Chinese recruitment website. The company is an incredible turnaround story, and shares are already up 30% in just six weeks.

As you can see, China's robust stimulus package is creating opportunities in a variety of different industries in China. And companies aligning their businesses to take advantage of these opportunities are profiting nicely.

What's great is that we can take advantage of this strength, too. Although all three of the above-mentioned companies have rallied 30% or more recently, there's still more room to run. And I'm expecting all three companies to experience a nice pop in share price after reporting solid results on Friday.

Don't miss out! Take advantage of this incredible opportunity to join Asia Edge for just $595 per quarter, and learn how you can snatch a quick 5% to 10% profit immediately following these earnings report.

Previous | 1 | 2 | 3 | 4 | 5 | Next