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Fired up over coal ETF

"Coal accounts for more than 70% of China's electricity," says Tony Sagami. In Uncommon Wisdom, he looks to an ETF poised to benefit from long-term rising coal demand.

The advisor explains, "China's coal consumption is growing, and it is building coal-powered power plants at a breakneck pace.

"Why? Because they are much cheaper to build and operate than any other power-producing option. China is power starved, and coal is the main resource used for generating electricity in the country.

Continue reading Fired up over coal ETF

Potash (POT): Long-term growth in fertilizers

"Investing in the fertilizer business may not sound sexy, but the dynamics and fundamentals of the food business will turn it into one of the most profitable sectors you could find.," explains global expert Tony Sagami.

In his The Asia Stock Alert he suggests, "Every farmer needs to use fertilizer -- and the most used and most important fertilizer is potash. And Potash Corporation of Saskatchewan (NYSE: POT) is set to make a bundle supplying potash to the world."

"There are approximately 6.6 billion people on our planet today, but that number is expected to grow to 8.2 billion by 2030. That's a lot of mouths to feed. Plus, the amount of food each mouth is eating is also increasing.

Continue reading Potash (POT): Long-term growth in fertilizers

Yanzhou Coal (YZC): All fired up

"Any coal-producing company located in and selling to China is going to be printing money," says Asia region stock speciality Tony Sagami.

In his The Asia Stock Alert, he explains, "And in my opinion, the best to profit from that sooty need is Yanzhou Coal (NYSE: YZC), a fully integrated company that does it all; the company mines, prepares, processes, sells and transports coal." Here's his bullish review.

"The concept of investing in coal may not sound very exciting, but it is when you realize we're talking about the primary source of power for a country with 1.3 billion people.

Continue reading Yanzhou Coal (YZC): All fired up

China Nepstar (NPD): Emerging drug store chain

This post is part of a 12 articles feature on the best bets for investing in China. To see all the other recommendations in this special report, click here.

"Today, most independent drug stores in the U.S. have been replaced by the behemoth pharmacy departments; but in China, the business is still dominated by mom-and-pop operations." explains China stock expert Tony Sagami.

In his The Asia Stock Alert, he says, "But that is changing, and getting in on the ground floor with China Nepstar (NYSE: NPD) could make you a bundle of money."

Continue reading China Nepstar (NPD): Emerging drug store chain

Merk Hard Currency (MERKX): Diversify out of dollars

"The Congressional Budget Office upped its 2009 fiscal year deficit forecast to $1.2 trillion; add in the stimulus plan, and the deficit could be above $2 trillion," says Tony Sagami.

The editor of The Asia Stock Alert says, "As a result, we believe that the U.S. dollar is in big, big trouble. To protect your portfolio -- or even profit from the falling dollar -- buy Merk Hard Currency Fund (MERKX)."

The advisor explains, "For a long time, we have depended on the confidence and generosity of foreigners, especially the Chinese and Saudi Arabians, to fund our deficit spending lifestyle. Those days, however, are coming to a close.

"With the Federal Reserve Bank cutting its short-term interest rate target to range from 0% to 0.25%, I doubt you'll see overseas investors lining up to buy our next-to-nothing yielding bonds. The U.S. is, unfortunately, a country in trouble and headed for a painful currency devaluation. Inflation is lurking around the corner.

Continue reading Merk Hard Currency (MERKX): Diversify out of dollars

New Oriental Education (EDU): At the head of the class

"I haven't wavered in my belief that New Oriental Education (NYSE: EDU) is the single best stock I've run into during my 25-year investment career," asserts Tony Sagami in The Asia Stock Alert.

"The company's latest quarterly results only reinforce that belief. The Chinese are signing up in droves for basic English classes that are offered by New Oriental.

"First quarter profits rose $11.6 million, to 29 cents per share, from $8.4 million or 22 cents during the same period a year ago. That, by the way, is well above the 23 cents Wall Street was expecting.

"Revenue jumped from $32.8 million a year ago to $48.1 million, a 47% spurt. That number is extremely impressive given the fact that China was hit with its worst snowstorm in 50 years and caused many classes to be canceled.

Continue reading New Oriental Education (EDU): At the head of the class

Three takeover targets for China's buying spree

"I believe the #1 rule for making money in the next decade is to get long whatever the Chinese are buying," says Tony Sagami in the Asia Stock Alert.

"China will need to consume an unprecedented amount of natural resources to fuel its red-hot economy," says the advisor who offers his speculations as to the most likely takeover candidates in three areas -- energy, metals and food.

"There's no doubt in my mind that China is on a buying spree. And I'm not just talking about oil, either. Fact is, the Chinese have a ravenous appetite for virtually all commodities.

"While I don't have any inside knowledge about what companies the Chinese have in their sights, I do know what industries are strategically important to their lofty growth objectives.

"China needs energy - and lots of it - so you can expect frenzied buying activity to lock up reliable supplies of multiple sources of energy. In my book, oil, natural gas, coal, and uranium are all key players. My #1 pick for an energy takeover: Cameco (NYSE: CCJ), the largest uranium producer in the world.

Continue reading Three takeover targets for China's buying spree

Best Stocks for 2008: Man Sang Holdings (MHJ) is an Asian 'pearl'

For 25 years, Steven Halpern, editor of TheStockAdvisors.com, has surveyed the leading financial newsletter advisors asking for their favorite stocks for the coming year. This article is one of 100+ ideas in the Best Stocks for 2008 report.

"My favorite speculative, home run idea for 2008 is Man Sang Holdings, Inc.," says Tony Sagami, editor of The Asia Stock Alert.

He explains, "I run at a pretty fast pace when I'm in Asia. Every day is packed with factory tours, meetings with company executives, pestering government and university leaders for their local knowledge, and hitting the streets to see with my own eyes if the zealous Investor Relations departments are feeding me overly optimistic projections.

"When I was in China in May, I completely turned my schedule upside down after visiting Man Sang Holdings, Inc. (ASE: MHJ). I re-scheduled and postponed my entire South China schedule because what should have been a one-hour meeting at Man Sang turned into two full days of tire kicking and fact checking.

"Man Sang Holdings, together with its subsidiaries, is one of the leading pearl merchants in Greater China. The company primarily sells to jewelry manufacturers, wholesale jewelry distributors, and mass jewelry merchandisers, such as QVC, in the US, Europe, and Asia.

Continue reading Best Stocks for 2008: Man Sang Holdings (MHJ) is an Asian 'pearl'

Best Stocks for 2008: Asian expert dials up China Mobile (CHL)

For 25 years, Steven Halpern, editor of TheStockAdvisors.com, has surveyed the leading financial newsletter advisors asking for their favorite stocks for the coming year. This article is one of 100+ ideas in the Best Stocks for 2008 report.

"My favorite conservative idea for 2008 is China Mobile (NYSE: CHL)," says Tony Sagami, editor of The Asia Stock Alert. "Because of instant delivery and low cost, text messaging has rapidly become a wildly popular means of communication among young people.

"Text messaging over SMS (Short Messaging System) wireless systems is very popular in America. But one country sends more text messages than anybody else in the world: China.

"One out of every two SMS text messages sent in the world are sent in China. Typically, the cost of a text message in China costs about 10 fen (or 1 cent), so we're talking about a mountain of money. Indeed, in China mobile phone users are expected to send over 1 trillion text messages by the end of this decade.

"For investors, that gargantuan growth spells opportunity. And in China, the company poised to serve and profit from this trend is China Mobile, the largest wireless phone company in the world with 356 million subscribers and a dominant share of the rapidly growing Chinese wireless market.

Continue reading Best Stocks for 2008: Asian expert dials up China Mobile (CHL)

English lessons boost China's New Oriental

With the growing interest in investing in China, an increasing number of advisers are spending more of their time in the region, meeting with managements and getting first-hand experience about Chinese companies.

One such adviser is Tony Sagami, editor of The Asia Stock Alert. Back from his latest visit to the region, he has added New Oriental Education (NYSE:EDU) to his portfolio.

The company helps Chinese learn English and other languages. Sagami asks, "How much do I like New Oriental? If there was only one stock that you could own, this is the one."

And while the company has just gone through what is supposed to be its slowest time of year, the adviser notes, "Somebody forgot to tell the people running EDU that business should slow down, because it is still booming."

Continue reading English lessons boost China's New Oriental

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Last updated: November 10, 2009: 07:39 AM

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