Posted May 8th 2009 10:30AM by Steven Halpern
Filed under: QUALCOMM Inc (QCOM), PetroChina Co Ltd ADR (PTR), China Life Insurance ADS (LFC), China Mobile Limited (CHL)
Those surprised by the market's strength in recent weeks should be even more impressed with the rebound in China, where both their market and economy have proven among the most resilient in the world.
Global specialist Nicholas Vardy adds, "While the US markets are rising, Asian stocks are on fire." ETF expert Paul Tracy adds, "China funds have screamed to the top of the performance charts."
In large part, this strength is due to the country's stimulus program. Tracy points out, "To combat the sagging global economy, Chinese Premier Wen Jiabao orchestrated a massive 4 trillion yuan ($586 billion) stimulus package.
Continue reading Investing in China: 12 experts pick their best bets
Posted Mar 4th 2009 12:00PM by Paul Foster
Filed under: Options, China Mobile Limited (CHL)
China Telecom (NYSE: CHA) is recently up $2.51 to $35.85. Chinese Premier Wen Jiabao will announce a stimulus package during his annual address to the nation's legislature on Thursday. CHA is a provider of wire line telecommunication services in China. CHA March option implied volatility is at 67; June is at 62; near its 26-week average according to Track Data, suggesting non-directional price movement.
China Mobile (NYSE: CHL) is recently up $3.17 to $44.66. CHL over all option implied volatility of 58 is near its 26-week average according to Track Data, suggesting non-directional price fluctuations.
Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com.
Posted Feb 20th 2009 10:30AM by Steven Halpern
Filed under: International markets, China, Newsletters, Stocks to Buy, China Mobile Limited (CHL)
A long-term developing trend in Asia, according to international investing expert Yiannis Mostrous, is a rise in domestic demand within their own economies.
In Personal Finance, he looks at one favorite sector that will benefit -- wireless phone services -- and highlights two of his top choices, Chunghwa Telecom (NYSE: CHT) and China Mobile (NYSE: CHL).
"The current crisis will lead to profound changes in the global financial system. Societies in developed economies will begin to save more, while people in developing nations will begin to spend, nurturing domestic demand economies.
"The Asian economies should be able to move even closer to their ultimate economic goal: domestic demand-led economies.
"These countries have realized that factory building and manufacturing to satisfy consumer needs in the developed world can't remain their primary growtth engine.
Continue reading China telecom and wireless favorites
Posted Feb 17th 2009 10:55AM by Laurie Pasternack
Filed under: Analyst reports, Analyst upgrades and downgrades, Google (GOOG), DaimlerChrysler (DAI), Marriott Intl'A' (MAR), Analyst initiations, Lloyds TSB Group plc ADS (LYG), Suntech Power Hldgs ADS (STP), China Mobile Limited (CHL)
Analyst upgrades:
- Baird upgraded Starwood Hotels (NYSE: HOT), Host Hotels (NYSE: HST) and Marriott (NYSE: MAR) to Outperform from Neutral based on valuation and indications that negative sentiment has reached a bottom.
- Citigroup upgraded Torchmark (NYSE: TMK) to Buy from Hold as they find the valuation attractive and think management can grow earnings and book value in 2009/2010. Despite upgrading, the firm lowered their target price to $37 from $45.
- ASM International (NASDAQ: ASMI) was added to Goldman's Conviction Buy List.
- Credit Suisse (NYSE: CS) was raised to Overweight from Equal Weight at Morgan Stanley.
- Live Nation (NYSE: LYV) was upgraded at Natixis to Buy from Hold.
Continue reading Analyst upgrades, downgrades and initiations: HOT, GOOG, WPI, LYG ...
Posted Dec 31st 2008 10:30AM by Bryan Perry
Filed under: India, China, Newsletters, PetroChina Co Ltd ADR (PTR), Huaneng Power Intl ADS (HNP), China Life Insurance ADS (LFC), China Mobile Limited (CHL)
With all the media buildup leading up to the Olympic Games in Beijing this past summer, just about everyone and their brother was bullish on the China/India emerging market theme.
"Chindia," as it was coined, was supposed to be the next great economic wonder.
The belief that these markets did not need American demand swept international investment circles. Forecasts of double-digit GDP growth continuing for the next several years became the mantra of emerging market funds, and Wall Street analysts got caught up in the commodity bubble, which burst a month before the Olympic torch was lit.
The widely held belief of global economists was that these two sleeping giant economies would lap America in a matter of a few years, as per all the economic extrapolations and white papers published leading up to the Summer Games.
Stocks like Baidu.com (NASDAQ: BIDU), China Mobil (NYSE: CHL), China Life (NYSE: LFC), Huaneng Power (NYSE: HNP), PetroChina (NYSE: PTR), Infosys (NASDAQ: INFY) and Reliance Industries (not listed) seemed bulletproof given the revenue and earnings models being floated by the Chindia bulls.
Continue reading Best Trades of 2008: #1 Shorting 'Chindia' the day after New Year's
Posted Sep 29th 2008 1:15PM by Elizabeth Harrow
Filed under: Analyst reports, Analyst upgrades and downgrades, China, Options, Stocks to Sell, China Mobile Limited (CHL)
On a day when many telecom stocks were hit with downgrades, China Mobile Limited (NYSE: CHL) distinguished itself this morning by scoring an upgrade. Goldman Sachs raised its rating on CHL from "sell" to "neutral," while simultaneously trimming the stock's price target from HK$95 to HK$90. The price-target cut echoes a similar move made by Citigroup on Sunday; the brokerage firm cut its target on CHL from HK$120 to HK$100.
In response to today's mixed analyst comment, CHL is down more than 7% at midday. The equity has shed about 42% year-to-date, and its lengthy decline could prompt additional price-target cuts during the short term. According to Thomson Financial, China Mobile shares are trading about 60% south of their average 12-month price target of USD $81.01.
Today's upgrade from Goldman comes as CHL is approaching former support at the $44 level. This region buoyed the stock in early 2007 and earlier this month, which suggests that it could once again provide a floor for the shares. Unfortunately, though, the stock is also looking up at stiff technical resistance from its 10-week moving average, which means China Mobile might find itself bouncing sideways in the weeks to come. Or -- even more troubling -- a continued drop in the share price could spark an unwinding of widespread optimistic sentiment.
Continue reading China Mobile scores an upgrade, but plunges on price-target cut
Posted Sep 8th 2008 12:43PM by Sheldon Liber
Filed under: Deals, Competitive strategy, Apple Inc (AAPL), China, iPhone, China Mobile Limited (CHL)
While Apple Inc. (NASDAQ: AAPL) has had relatively smooth going in Europe introducing the iPhone, things are apparently less so in China (and Russia) where it is being reported: China Mobile to Buy Out iPhone in China.
The negotiations between China Mobile Ltd (NYSE: CHL) have led to many compromises on the part of Apple. To get the deal done it agreed to have no more sharing from toll revenues of cooperative carriers, and the Wi-Fi function of the multimedia smartphone is to be deleted.
Although it has been widely reported the Chinese anxiously want to sell iPhones to their hundreds of millions of potential customers -- something Apple has been vigorously pursuing -- it took several rounds of negotiations after which Apple got the short end of the stick.
Just one more company bending to the will of the Chinese. I wonder how long it will be before they reverse engineer the phone using Apple as another pawn in the game of technology transfer? I wonder if there is anything that should or can be done about it?
I'm sure after all is said and done Apple got the best deal it could. I just hope it works out as well as it envisioned.
Sheldon Liber is the CEO of a small private investment company and the principal for design and research at an architecture & planning firm. He writes the columns Chasing Value and Serious Money. Disclosure: I do not own shares of AAPL.
Posted Aug 28th 2008 11:24AM by Eric Buscemi
Filed under: Analyst reports, Analyst upgrades and downgrades, Coca-Cola (KO), Analyst initiations, Gilead Sciences (GILD), China Mobile Limited (CHL)
Analyst upgrades:
- Goldman upgraded BT Group (NYSE: BT) to Buy from Neutral on valuation and improved earnings visibility.
- Soleil upgraded shares of Jo Ann Stores (NYSE: JAS) to Buy from Hold following the company's Q2 upside surprise to reflect strong fundamentals and market share gains. The firm raised Jo Ann's target to $30 from $25.
- Amylin Pharma (NASDAQ: AMLN) was upgraded to Buy from Neutral at Merrill Lynch.
- Energen (NYSE: EGN) was upgraded to Buy from Neutral at UBS.
Analyst downgrades:
- Roth Capital downgraded shares of Warner Chilcott (NASDAQ: WCRX) to Hold from Buy pending patent clarity for the company's lead drug, Loestrin 24 for birth control. The firm lowered their target to $18 from $20.
- JP Morgan cut China Mobile (NYSE: CHL) to Underweight from Overweight as they believe increased competition may limit earnings growth.
- Cantor downgraded shares of Cell Genesys (NASDAQ: CEGE) to Hold from Buy following the termination of the VITAL-2 Phase III clinical trial. The firm also lowered their target to $2 from $10.
- Coca-Cola (NYSE: KO) was lowered to Neutral from Outperform at Credit Suisse.
- Gilead Sciences (NASDAQ: GILD) was downgraded to Equal Weight from Overweight at Lehman.
- Cinemark (NYSE: CNK) was downgraded at BMO Capital to Market Perform from Outperform.
Continue reading Analyst calls: BT, JAS, EGN, CHL, KO, GILD, DWA ...
Posted Aug 20th 2008 12:48PM by Steven Halpern
Filed under: International markets, China, Newsletters, Stocks to Buy, China Mobile Limited (CHL)
"Whenever anyone asks, 'Why invest in China?' the answer is very simple: that's where the money is, and it's where exponential future economic growth is also," says Jim Trippon.
The editor of The China Stock Digest then asks, "Will China suffers an Oympic hangover?" Here, he explains why that should not happen and offers a look at China Mobile (NYSE: CHL), which he calls the "top dog" in the Chinese wireless sector.
"The Bank of China (BOC) conducted a study of the effects of 12 Olympiads on their host countries over the course of 60 years. They found that nine of the twelve Olympic host countries suffered a decline in GDP growth in the eight years after the games.
"The key to a post Olympic slump is the size of the economy. Smaller economies like Korea suffered larger downturns after the games, while larger economies like the United States were not affected at all. In smaller economies the enormous investment dedicated to staging Olympic games created an arti?cial bubble which was followed by a slump when Olympic building booms came to an end.
"China has made one of the largest investments ever in the Olympic Games with some estimates of spending topping $40 billion. But we don't believe the capital city will go into a slump after the games.
Continue reading Olympic hangover? Not for China Mobile (CHL)
Posted Jul 31st 2008 11:59AM by Sheldon Liber
Filed under: International markets, China, International Business Machines (IBM), Johnson and Johnson (JNJ), PetroChina Co Ltd ADR (PTR), Huaneng Power Intl ADS (HNP), Johnson Controls (JCI), Honeywell Intl (HON), United Technologies (UTX), China Life Insurance ADS (LFC), Headline news, Aluminum Corp of China ADS (ACH), China Mobile Limited (CHL), , East West Bancorp (EWBC)

The Summer Olympics are only days away and what the Chinese had hoped would be their coming out party to celebrate all that is good, may instead become quite the opposite.
The air pollution in Beijing is so bad that even reducing automobile traffic by 50% has not helped much. China is now considering a 90% reduction according to news reports. Athletes are staying in other countries until the games begin so that they may train somewhere they can breathe. There are also reports that many athletes involved in stamina events will be forced to wear masks to protect themselves from the particulates in the air.
Now
Reuters is reporting that "Some
International Olympic Committee officials cut a deal to let China block sensitive websites despite promises of unrestricted access, a senior IOC official admitted on Wednesday."
So the world media will not be able to do their jobs in a manner they are accustomed to. But who are we actually referring to? Western media, of course, because half the world still limits access to information to some degree.
Continue reading Chinese markets: The truth will set you free -- maybe
Posted Jul 30th 2008 11:22AM by Steven Halpern
Filed under: International markets, China, Newsletters, Stocks to Buy, China Mobile Limited (CHL), Technology
"Growth investors can hitch their portfolio to any number of Asian stars; I think one big winner is going to be China Mobile (NYSE: CHL)," says Tony Sagami in his specialized Asia Stock Alert.
"Mobile phones are much, much more than telephones to Asians. If you travel to Asia, one of the first things you'll notice is how most locals walking down the street have mobile phones glued to their ears.
"It would be a big mistake to think of China Mobile as simply a mobile phone provider. In addition to traditional calling services, the company offers value-added services such as voice mail, conference calling, instant messaging, text messaging, as well as accessing the Internet.
"Even though the price of computers has fallen dramatically in the last few years, a personal computer (PC) is still out of financial reach for the average Chinese. Meanwhile, mobile phones are both cheap and capable of many of the same functions as PCs.
"Look, $500 to $1,000 dollars for a PC may seem reasonable to you and me, but that is a small fortune for the typical Chinese consumer, who makes less than $3,000 a year.
Continue reading China Mobile (CHL): More than just talk
Posted Jul 24th 2008 11:20AM by Eric Buscemi
Filed under: Analyst reports, Analyst upgrades and downgrades, McDonald's (MCD), AT and T (T), China Mobile Limited (CHL)
MOST NOTEWORTHY: Varian, Chipotle Mexican Grill and McDonald's were today's noteworthy downgrades:
- Thomas Weisel downgraded shares of Varian (NASDAQ:VARI) to Market Weight from Overweight following the company's Q3 results to reflect manufacturing relocation issues and the slowdown in organic growth. The firm lowered their target to $47 from $70.
- Jefferies cut Chipotle Mexican Grill (NYSE:CMG) to Hold from Buy following the company's in-line Q2 results, as they believe consumer headwinds and commodity inflation are likely to pressure EPS in coming quarters. The firm lowered their target to $80 from $100.
- Deutsche Bank downgraded McDonald's (NYSE:MCD) to Hold from Buy as they believe higher beef costs and slower traffic could drive reduced profitability and limit upside. The firm reduced their target to $63 from $67.
OTHER DOWNGRADES:
- AT&T (NYSE:T) was lowered to Neutral from Overweight at JP Morgan.
- Baird cut Citrix Systems (NASDAQ:CTXS) to Neutral from Outperform.
- Raymond James (NYSE:RJF) was lowered to Market Perform from Outperform at Wachovia.
Posted Jun 27th 2008 4:27AM by Douglas McIntyre
Filed under: Products and services, Launches, Apple Inc (AAPL), China, China Mobile Limited (CHL)
China is the world's largest cellular phone market. Without it, Apple's (NASDAQ:AAPL) quest to grow iPhone sales quickly would be hindered.
Apparently, however, Apple is now getting close to a deal.
According to Reuters, "Apple is no longer insisting on a revenue-sharing policy, so the biggest hurdle for China Mobile to bring in the iPhone has been cleared, but there are practical issues still to be resolved," said China Mobile (NYSE:CHL) spokeswoman Rainie Lei. Apple will not get a piece of the subscription fees attached to the phone, but it will move into a position to sell millions of iPhones on the mainland.
The news is likely to push Apple's stock up. China sales could eventually equal all of Europe's sales combined and may, at some point, rival sales in the US.
Apple's biggest problem in China may be the price of the phone. The upper and middle classes there may well pay for an expensive smartphone. The less well-off are likely to stick to products that cost well below what would be $100 in the US.
But Apple does not need to sell iPhone to all 1.3 billion people in China. It would probably be happy if just half those people bought the new 3G product.
Douglas A. McIntyre is an editor at 247wallst.com.
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