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Grass Is Greener On The Other Side
While the global crisis of 2008 and now 2009 has certainly affected the planet's entire population to some degree, American investors who think it's as bad anywhere else as it is in the U.S. China
IN PICTURES: Eight Ways To Survive A Market Downturn
Given that there's no clear end to the contraction being experienced in theU.S.
Just the Facts
While the U.S. is lamenting its fourth quarter gross domestic product (GDP) contraction, clocked at an annualized rate of -6.2%, China still managed to grow its economy 6.8% last quarter. It still trails their peak growth rate of 14%, from Q2 of 2007.China
On the flipside, Chinese Premier Wen Jiabao reiterated his expectation that the country's GDP growth in 2008 would indeed be pushed back up to 8%.
Even if he overestimated by 50%, the country is still looking at a GDP growth rate in the 4% area for this year. If the world's economy lingers in the gutter for a few more months, Wen and company could still likely muster that much growth.
Either way,China
China 's Rising Red Stars
The following are five readily-available American depositary receipts (ADRs) that look well-positioned to capitalize onChina
Aluminum Corp. ofChina
On Wednesday March 4, the Chinese government unveiled a $586 billion stimulus, causing most material stocks worldwide to jump. It's not exactly clear how much of that stimulus will drum up demand for aluminum, but odds are that at least some of it will. Factoring in the country's penchant for pouring money into its own infrastructure, and the scenario is even better for ACH.
China Mobile Ltd. (NYSE:CHL): the Chinese are as addicted to their cell phones. That in itself isn't a reason to invest in a Chinese wireless company, but it doesn't hurt either.
Though we don't have the numbers for the second half of last year, China Mobile increased earnings per share (EPS) in each of the four prior six-month (two quarter) periods. Moreover, earnings estimates have already been adjusted lower for all of 2008 and 2009 to reflect a slowdown. Those EPS guesses are now $4.10 and $4.44, respectively, which translates into forward price to earnings ratios of 10.4 and 9.6, respectively as of market close March 5.
Mindray Medical International Ltd. (NYSE:MR) reported fourth quarter (2008) numbers on Wednesday March 4, 63.6% increase in domestic revenue, and a 103.9% increase in overseas revenue. Full year EPS rose by 48.7% to $1.17.
Giant Interactive Group Inc. (NYSE:GA) reported its fourth quarter numbers on Wednesday, topping per-share earnings estimates by 8 cents (18 cents rather than the expected 10 cents). Given the nature of the business and the loyalty of their fan base (a.k.a. paying subscribers) for their game ZT Online, I think comparable results can be reproduced going forward.
Final Thoughts
The world needsChina more than China
It is true that exports fromChina China China
In other words,China
This emerging market is making strides in regulation and disclosure Investing In China.
IN PICTURES: Eight Ways To Survive A Market Downturn
Given that there's no clear end to the contraction being experienced in the
Just the Facts
While the U.S. is lamenting its fourth quarter gross domestic product (GDP) contraction, clocked at an annualized rate of -6.2%, China still managed to grow its economy 6.8% last quarter. It still trails their peak growth rate of 14%, from Q2 of 2007.
On the flipside, Chinese Premier Wen Jiabao reiterated his expectation that the country's GDP growth in 2008 would indeed be pushed back up to 8%.
Even if he overestimated by 50%, the country is still looking at a GDP growth rate in the 4% area for this year. If the world's economy lingers in the gutter for a few more months, Wen and company could still likely muster that much growth.
Either way,
The following are five readily-available American depositary receipts (ADRs) that look well-positioned to capitalize on
Aluminum Corp. of
China Mobile Ltd. (NYSE:CHL): the Chinese are as addicted to their cell phones. That in itself isn't a reason to invest in a Chinese wireless company, but it doesn't hurt either.
Though we don't have the numbers for the second half of last year, China Mobile increased earnings per share (EPS) in each of the four prior six-month (two quarter) periods. Moreover, earnings estimates have already been adjusted lower for all of 2008 and 2009 to reflect a slowdown. Those EPS guesses are now $4.10 and $4.44, respectively, which translates into forward price to earnings ratios of 10.4 and 9.6, respectively as of market close March 5.
Mindray Medical International Ltd. (NYSE:MR) reported fourth quarter (2008) numbers on Wednesday March 4, 63.6% increase in domestic revenue, and a 103.9% increase in overseas revenue. Full year EPS rose by 48.7% to $1.17.
Giant Interactive Group Inc. (NYSE:GA) reported its fourth quarter numbers on Wednesday, topping per-share earnings estimates by 8 cents (18 cents rather than the expected 10 cents). Given the nature of the business and the loyalty of their fan base (a.k.a. paying subscribers) for their game ZT Online, I think comparable results can be reproduced going forward.
Final Thoughts
The world needs
It is true that exports from
In other words,
This emerging market is making strides in regulation and disclosure Investing In China.
by
James Brumley
James Brumley is a freelance writer and registered investment advisor. He began his career as a broker with a major Wall Street firm, where fundamentals and long-term holding periods were core strategies. After that, he switched gears completely, becoming an analyst at a short-term trading newsletter that focused on technical analysis. He now manages client money using the best of both philosophies. His company, Bluegrass Portfolio Management, offers investors an opportunity to reap superior returns with minimized risk.
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