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51job: Like monster.com on steroids

For those unfamiliar with the Chinese job search and placement company known as 51job (NASDAQ: JOBS), China stock expert Jim Trippon explains, "We consider this oddly-named company something like a Monster.com (NASDAQ: MNST) on steroids!"

The company, he notes in his China Stock Digest, connects millions of Chinese job seekers with tens of thousands of companies through a variety of services. In addition to its Internet portal, 51Job publishes the 51job Weekly, which the advisor points out is a leading employment paper distributed in more than twenty-three major cities throughout China. Each edition is included as an insert in local newspapers carrying both local job listings and advertising.

Trippon explains, "51job was a hot IPO when it hit the market almost three years ago, but it fell from its early peak of almost $55 a share when realistic earnings expectations set in. The company has been rising through 2007 as its profit picture has improved. The company beat Wall Street earnings estimates in its most recent quarter with revenues of $26 million. 51job is also predicting increased earnings per share in the coming quarter."

With a market cap of $517 million and a forward P/E of 25.5 he notes, the company is "priced for growth." As such, the advisor is adding the stock to his model portfolio.

Each day, Steven Halpern's TheStockAdvisors.com features the latest investment ideas and market commentary from the financial newsletter community.

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: 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 28, 2012: 04:15 AM

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