Five Must-Own Stocks for the Yearend Rally

Robert Hsu, November 17, 2009

In this Issue:

Three Reasons to Bet on the Yearend Rally
Four Ways to Start Profiting Today
One More Profitable Opportunity

Four Ways to Start Profiting Today

I don't know what's on your wish list for the upcoming holiday season, but for me, I'm pretty excited that Santa Claus will likely throw in a yearend rally to fill our stockings with green. That's why I'm advising my China Strategy and Asia Insider subscribers to start preparing for this rally today.

But what are the best bets for incredible profits heading into yearend? Well, if you have been reading my Asia Insider issues over the past two months, then you should already have a good start on your China stock buy list. In fact, just take a look at how some of the companies we've talked about have performed in the past two months…

	Company	Sector	Gain
Long-Term Bet	Ctrip.com	Travel & Tourism	25.61%
Short-Term Trade	E-Learning Business	Education	22.09%
Long-Term Bet	SPDR Gold Trust	Commodities	17.40%
Short-Term Trade	Fertilizer Producer	Green Tech	16.53%
Short-Term Trade	Steel Manufacturer	Commodities	14.59%
Long-Term Bet	Water Treatment Equipment Supplier	Green Tech	12.62%
Long-Term Bet	Retail Drugstore	Healthcare	11.06%
Long-Term Bet	China's Google	Internet	9.80%
Short-Term Trade	Fertilizer Producer	Green Tech	9.28%

Digging a little deeper into these results, many of the Chinese companies that I recommend have experienced bumps higher leading up to and following their respective third-quarter earnings results. Despite these moves higher, I still see opportunities in four of these stocks. Let's take a closer look…

Must-Own Stock #1: China's leading online travel company, Ctrip.com (NASDAQ: CTRP), was a featured stock in our discussion on travel and tourism. If you recall, the company is currently benefiting from an increase in travel in China, as it's the leading online booker of airline tickets and hotel rooms in the country. In fact, Ctrip reported outstanding results during the third quarter with revenues rising 47% year on year and income popping 80% year on year.

In addition, the company expects revenues to increase 25% to 30% in the fourth quarter. Given these impressive third-quarter results and positive outlook, Ctrip shares rallied 12% in the two days following the announcement. I sure hope you jumped on board when we discussed it in early October. If not, it's not too late -- join China Strategy today and receive my current buy advice on Ctrip.

Must-Own Stock #2: Green technology is a hot topic, especially in China. The country suffers from severe air and water pollution problems, but as part of the government's stimulus plan, funds are being dedicated to cleaning up these pollution issues. And there's one company that stands to benefit greatly -- China's leading provider of environmental protection equipment and pollution control for the iron and steel industry.

This company's products are in strong demand, as the Chinese government requires iron and steel companies to reduce their harmful emissions. In fact, rising demand for this company's products was particularly apparent in the most recent quarter – net sales jumped 41% and net income popped 73%! It was a record quarter for the company, and as a result, shares surged 25% in the past three days. Don't miss out on the next move higher -- join Asia Edge today!

Must-Own Stock #3: Last week, I explained why China's real estate market is red-hot and provided you with a great way to take advantage of that trend -- Chinese real estate services company. At that time, the company was set to report earnings this week, and I recommended that you jump on board before that report. Well, the company reported earnings for the third quarter -- and boy, were they good!

For the third quarter, this real estate company noted that the total value of new properties sold totaled $4.3 billion, a 314% increase over last year's third quarter! It gets better: Total revenues jumped an incredible 119% over last year and income soared 220% from last year's third quarter. And management has a positive outlook going forward, expecting the company to maintain its growth momentum in the fourth quarter.

In anticipation of this positive report, shares have been trekking higher since Friday, up nearly 8% in the past three days. This is just the beginning of the move higher I'm expecting in this company's shares -- join China Strategy today to find out how to start profiting.

Must-Own Stock #4: A couple weeks ago, we discussed China's healthcare industry and the opportunities popping up there due to the nation's healthcare reform plan. At that time, I noted that China's pharmaceutical industry was set to soar from this reform plan. And one company stood right in line to benefit -- the leading supplier of traditional Chinese medicine.

Well, this company just reported earnings on Friday, and let me just say, it's definitely benefiting! It announced a record first quarter for 2010 with revenue jumping 40.2% and income increasing 22.3%. In addition, cash flow from operations soared 345% to $2.2 million. And the company noted that the record quarter was due to the favorable policies infiltrating the healthcare industry due to China's reform plan.

What's great is that the Street is still totally overlooking this small-cap pharmaceutical company -- shares didn't budge on the incredible results. But don't look for this to last long. Instead, I recommend that you take advantage of these bargain prices and get on board before shares really take flight. Join Asia Edge today to learn how to get started.

Previous | 1 | 2 | 3 | Next