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New Oriental (EDU): Asia expert's 'best stock in the world'

Tony Sagami, editor of Asia Stock Alert, calls New Oriental Education (NYSE: EDU) – which provides English language instruction in China -- the "single best stock idea in the world."

New Oriental, he notes, recently reported quarterly results showing a 4 cent per share loss for the quarter. He notes, that while this was a 65% improvement over the same period last year, it was 1 cent profit Wall Street was expecting.

The reason for the shortfall, he observes, was that increased marketing and advertising expenses. Thus, he notes, "While all that extra spending hurt profits last quarter, it should pay off in spades down the road." In fact, he adds,
That's why revenues jumped by 29% to $24.9 million, slightly ahead of the consensus estimate of $24 million."

Meanwhile, he notes that total student enrollments in language training and test preparation courses for the quarter ending May 31 increased by 31.5% year-over-year to approximately 314,000.

Continue reading New Oriental (EDU): Asia expert's 'best stock in the world'

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

Global gains: NTT DoCoMo's credit card phone

I've just returned from the World Money Show in Orlando where more than 10,000 investors gathered to learn about global investing. I had a chance to meet with many of the financial experts and global company representatives featured at the show, and over the next week I will share some of their top investment ideas. To view all of the stocks featured in this special global report, click here.

Visiting from Japan was mobile phone operator NTT DoCoMo (NYSE:DCM), whose stock is a favorite buy from Tony Sagami, editor of the Asia Stock Alert and a global analyst with Martin Weiss Research.

In reviewing the company, Sagami is particularly impressed with its new "portable wallet," which lets a cell phone act a credit card.

First, he notes, "The company just reported its results for the first nine months of its fiscal year (through the end of December). And while the firm delivered essentially flat sales and profits from the same period last year, DoCoMo still made $3.3 billion of profits on $29.7 billion of sales in the last nine months.

"Meanwhile, three items impressed the heck out of me. First, DoCoMo grew its subscriber base from 50.3 million last year to 52.2 million today. For a country whose cellular phone market is mature and very saturated, that additional 1.9 million cellular subscribers is pretty impressive.

"In addition, DoCoMo generates about $6 billion of free cash flow each year and has been using those dollars to buy back stock, increase its dividend, and invest in building out its network and new cutting-services, such as osaifu-ketai.

Continue reading Global gains: NTT DoCoMo's credit card phone

Top Picks 2007: Trippon sees "pension profits" at China Life

Each year Steven Halpern, editor of TheStockAdvisors.com, surveys the leading financial newsletter advisors asking for their favorite stocks for the coming year. This article is part of his 24th annual Top Picks Report.

China Life Insurance Co. (NYSE: LFC) is the favorite conservative stock for 2007 from Jim Trippon, editor of The China Stock Digest. The advisor, who maintains permanent offices in China, says, "Although the stock has performed strongly in 2006, we still see strong gains ahead.

"China Life is China's largest insurance company; it has written more than 48 million individual and group policies and has a huge sales force of 640,000 agents who operate in 9,300 field offices throughout the world's most populous country.

"China Life first caught our attention as a potentially huge growth engine in December 2005 with its announcement that it had been given the go-ahead by the China Insurance Regulatory Commission (CIRC) to set up a pension business as it moves to expand into the fast-growing corporate annuities sector.

"This is a major breakthrough in a nation of 1.3 billion prospects who can no longer rely on the government for their pensions. CIRC expects the country's corporate annuity net premiums to grow by 100 billion Yuan, or US$124 million, annually for the next several years. We expect China Life's historical statistics to move up rapidly as its large sales force is tasked to move aggressively into pension funding."

To see Jim's favorite speculation for 2007, click here.

Top Picks 2007: Mostrous takes "silk road" to Singapore

Each year Steven Halpern, editor of TheStockAdvisors.com, surveys the leading financial newsletter advisors asking for their favorite stocks for the coming year. This article is part of his 24th annual Top Picks Report.

United Overseas Bank Limited (Other OTC: UOVEY) is the top speculative idea for 2007 from Yiannis Mostrous. The global expert and editor of The Silk Road Investor -- and author of a new book by the same name -- explains, "United Overseas is a play in the positive changes taking place in Singapore, which continues to improve its image and attract the affluent from across Asia.

"United Overseas has been steadily improving operations and asset quality while expanding into Thailand and Indonesia.The bank has achieved a healthy mix of non-interest and interest-based income, with non-interest income growing strongly -- always a good thing. Its non-performing loan ratio dropped from 8.5% to 5.6% during the past year.

"Though Singaporean banks have been slow growers for sometime, improvement is visible as the economy enjoys strong growth amid a reflationary environment. As a result, loan growth could easily reach double digits next year. Banking stocks should eventually trade at a premium to the market, especially as return on equity improves through growth.

Continue reading Top Picks 2007: Mostrous takes "silk road" to Singapore

Top Picks 2007: China Stock Digest speculates on China Direct

Each year Steven Halpern, editor of TheStockAdvisors.com, surveys the leading financial newsletter advisors asking for their favorite stocks for the coming year. This article is part of his 24th annual Top Picks Report.

China Direct, Inc. (OTCBB: CHND) is the favorite speculative idea for 2007 from Jim Trippon. The editor of The China Stock Digest explains, "China Direct invests in companies that need a capital infusion to achieve the next level in their growth.

"Unfortunately, major Chinese banks and other large financial institutions have shunned smaller institutions and typically lend only to the country's very large cap companies. The small to mid-cap investment gap is where China Direct comes in.

"This year China Direct has invested $4 million to acquire controlling interests in five companies, including a chemical maker, a magnesium refiner, a logistics company, a toy producer, and a metals recycling firm. China Direct projects that revenues will double from 2007 to 2008 as it continues its small and mid-cap acquisition and expansion strategy.

Continue reading Top Picks 2007: China Stock Digest speculates on China Direct

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Last updated: May 27, 2012: 09:15 PM

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