"Taiwan - the so-called 'other China' - is an overlooked gem," says Martin Hutchinson, contributing editor to the top-notch Money Morning.

"With a per capita income of nearly $30,000, and a productivity growth rate of 4% -- more than double the rates enjoyed by Europe and the United States -- Taiwan is one of the world's best bargains." Here, the advisor looks at ways to invest in Taiwan.

"There's no question that the Taiwanese economy is highly dependent on China. Indeed, fully 38% of Taiwan's exports go to China - including Hong Kong - while 16% of Taiwan's imports originate on the mainland."

"Taiwan's inflation rate is a paltry 3%, government spending accounts for a mere 21% of the country's economic activity and the country runs a hefty balance-of-payments surplus. Unlike China, there are no signs of major problems in Taiwan's banking system.

"Thus, even though Taiwan's growth rate is lower than China's 'official' growth rate, the greater stability of Taiwan's economy ought to make the shares of Taiwan-based companies trade at a premium to those based in China. But that's not the case. Instead, Taipei trades at less than half the earnings multiple of Shanghai.

MOST NOTEWORTHY: Sunoco, Valero Energy, UBS AG, Lehman Brothers and Supertex were today's noteworthy upgrades:

• Citigroup upgraded both Sunoco (NYSE: SUN) and Valero (NYSE: VLO) to Buy from Hold, as they believe both companies will benefit from the collapse of ethanol prices since refiners are mainly supplied under term contracts struck above current levels.
  
• Merrill upgraded shares of UBS (NYSE: UBS) to Buy from Neutral to reflect the company's lack of exposure to fixed income.
  
• Credit Suisse upgraded shares of Lehman Brothers (NYSE: LEH) to Outperform from Neutral citing improved performance prospects.
  
• Supertex (NASDAQ: SUPX) was raised to Buy from Neutral at Oppenheimer. The firm expects a rebound in all business segments, Medical is entering a seasonally strong September quarter, and notes Motorola (NYSE: MOT) shipments are growing.

OTHER UPGRADES:

• CIBC upgraded Novatel Wireless (NASDAQ: NVTL) to Sector Outperformer from Sector Performer.
  
• Suntrust upgraded American Reprographics (NYSE: ARP) to Buy from Neutral.
  
• Taiwan Semiconductor (NYSE: TSM) was upgraded to Overweight from Neutral at JP Morgan.
  
• Jefferies upgraded Dover Downs (NYSE: DDE) to Buy from Hold.

MOST NOTEWORTHY: Notable companies that were upgraded today included Taiwan Semiconductor (TSM) and the Nasdaq Stock Market (NDAQ).

• Following an inventory correction from 3Q06 to 1Q07, Bear Stearns upgraded Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM) to Outperform from Peer Perform, citing expectations of the semiconductor cycle to accelerate in the second-half of 2007.
• The Nasdaq Stock Market Inc. (NASDAQ:NDAQ)was added to Friedman Billing's Top Pick list, citing an attractive valuation following Friday's sell-off in addition to the company's strategic position.

OTHER UPGRADES:

• Credit Suisse upgraded Vodaphone (NYSE:VOD) to Outperform from Neutral; the firm believes Vodaphone's European mobile division should top expectations in the second quarter.
• Rodman & Renshaw upgraded shares of Gilead Sciences Inc. (NASDAQ:GILD) to Outperform from Market Perform, as they believe the company is poised to benefit from the recent CDC recommendation for routine HIV-testing in all individuals in the U.S. between the ages of 13-64 with a voluntary opt-out policy.
• A.G. Edwards upgraded Altera Corp. (NASDAQ:ALTR) to Buy from Hold following the resolution of the company's stock option issues. Pacific Crest upgraded Altera to Outperform from Sector Perform. They believe Altera is tracking inline with the midpoint of its guidance and that seasonal growth will return in the first quarter.

Analyst summaries provided by TheFlyOnTheWall.com (subscription required).