"We have a number of stocks in our portfolio that are doing well, fundamentally, even if their stock prices aren't. Therefore I am focusing on those as most attractive for purchase, if you have the brass and the cash.

"The profitability of SmartHeat, a manufacturer of Plate Heat Exchangers (PHEs) in China, is only expected to improve despite the global recession. Indeed, SmartHeat so far has held up pretty well as the market tanks to new lows.

"Installing more efficient heating and heat transfer products can save money by saving energy and by burning less energy per unit of heat helps to reduce pollution and thus is right up there on the list of China's $586 billion stimulus package.

"In fact, SmartHeat has already won a $1.2 million contract directly linked to this plan and anticipates additional orders.

"China's stimulus package includes $58 billion for funding of rural and urban infrastructure and energy efficiency projects. Previously the company announced important deals with Siemens and Fluor that should also help fuel growth in 2009.

"SmartHeart not only recently got its NASDAQ listing but has also been accepted for NASDAQ Global Market listing. SmartHeat plans to host nearly a dozen analysts in China this month, and perhaps raise some equity along the way to get a wider share base, needed for higher daily volume, wider analyst exposure. The shares remain a Buy.

"Mindray is a medical equipment company located in China with a focus on patient monitoring, diagnostic laboratory instruments and ultrasound imaging. Its niche is quality equipment at an affordable price, which is becoming even more important in the current environment.

"Mindray develops most of its products for initial sale in China where there is a burgeoning market opportunity and then leverages that by gradually rolling each of these products out to the rest of the world.

:This opportunity has been enriched by China's new $585 billion economic stimulus package, some of which is earmarked for improving the healthcare system. Mindray manufactures over 60 products which it sells in more than 140 countries.

"During 2008 it launched 10 new products, and received 9 FDA approvals in the U.S. and foresees 7 - 9 more being introduced in 2009. Among these will be entries in two new product lines: surgical lights and beds.

"Mindray scored a 44% increase in EPS to $.32 on a non-GAAP basis and $0.28 on the GAAP basis equaling estimates and hitting its full year guidance spot on with non-GAAP EPS of $1.17. Revenues increased a whopping 84% in Q4, including a largely organic increase of 64% in China.

"The company has an excellent balance sheet including $259 million in cash and investments and no debt... and it generated $93 million in operating cashflow in 2008 of which $40 million came in Q4. While the Company does not give quarterly guidance, it did forecast at least 20% growth in revenues for all of 2009.

"You might think investors would flock to a medical stock doing this well in a brutal recession. Instead, the stock has undeservedly dropped in half in the past year. Nonetheless, if you have the nerve to buy something, this is a relatively good choice."

Steven Halpern's TheStockAdvisors.com offers a daily look at the latest market commentary and favorite stock picks and investment ideas from the nation's leading financial newsletter advisors.