This post is part of a special report, Global advisors look to China.

"Sure, China is slowing down along with the rest of the global economy; but it's still growing faster than everyone else," says Mark Skousen.

In his specialized service, High Income Alert, he looks to Huaneng Power (NYSE: HNP), "This power product is an excellent, recession-resistant China play. And we'll be collecting a 6.5% dividend too."

Skousen explains, "China's Premier Wen Jiabao's goal is 8% annual growth. He may not achieve it. But the outlook for certain industries -- especially utilities -- remains robust.

Continue reading Huaneng Power (HNP): Income from China

Huaneng Power (HNP): Income from China originally appeared on BloggingStocks on Sat, 28 Mar 2009 09:30:00 EST. Please see our terms for use of feeds.

With its own economic stimulus program in place, a relatively stable banking system, and a stock market that has been resilient in recent months, numerous leading global investment advisors are looking bullishly towards China.

From technology to power, and from individual stocks to ETFs, and from Hong Kong to Taiwan to mainland China, we turn to seven leading advisors for their favorite ways for US investors to take a stake in Asia.

Continue reading Global advisors look to China: 10 picks from seven pros

Global advisors look to China: 10 picks from seven pros originally appeared on BloggingStocks on Fri, 27 Mar 2009 17:00:00 EST. Please see our terms for use of feeds.

Continue reading Chasing Value: 2008 picks -- the last nail

Chasing Value: 2008 picks -- the last nail originally appeared on BloggingStocks on Mon, 12 Jan 2009 15:00:00 EST. Please see our terms for use of feeds.

The following two-part article puts forth ten stock ideas that I believe would be better off in your investment portfolio than one comprised primarily of Certificates of Deposits (CDs) or bonds, or even government treasuries. This is not to say that CD's do not have value or offer some level of security, but they are long term losers.

A basket of high yielding-high quality stocks can offer a higher return, better tax advantages, and the potential of significant appreciation for those with a long time horizon. Five year CD earning 4%, or a utility stock? I pick the utility every time.

My wife sent me the following quote from Ambrose Redman that I thought would be worth sharing with readers: "Courage is not the absence of fear but rather the judgment that something else is more important than one's fear."

It seems that might be extended to one's view on investing as well. What is really important, the short term or the long term, growth or value, the promise of riches or the hope for stability? In each case I would favor the latter over the former and this brings to mind one of my pal Warren's lessons: Do not buy a stock unless you would be happy to own it even if the market was closed for ten years.

Berkshire Hathaway (NYSE: BRK.A and BRK.B) is certainly a candidate. Take a look at last week's Chasing Value: Considering Berkshire Hathaway... again. However, it does not pay a dividend. The following five quality stocks do:

Continue reading Serious Money: Choose these 5 stocks over CDs -- DEO, GE, HNP, JPM, MRK

Serious Money: Choose these 5 stocks over CDs -- DEO, GE, HNP, JPM, MRK originally appeared on BloggingStocks on Mon, 25 Aug 2008 12:30:00 EST. Please see our terms for use of feeds.

The stock is down from $41.75 in December when I suggested adding it to your watch list, to about $35 ten weeks ago when I last wrote at length about it in Chasing Value: You want power, buy power -- Huaneng Power HNP. It closed today at $28.36, up $0.31 (+1.11%) and is paying a 5.78% dividend yield.

The Motley Fools recently reported that the Chinese goverment will be increasing their efforts to clean up the environment. Along those lines Huaneng Power is in the procees of building the first zero-emissions coal-fired power plant. HNP also announced that it is raising generating capacity to 36,993 MW.

HNP remains one of my favorites for the next few decades as China continues to develop. As long as the dividend remains secure it is a very compelling stock to include in a long term diversified portfolio as a core holding.

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 currently own shares of HNP.

Chasing Value: Huaneng Power odds & ends originally appeared on BloggingStocks on Fri, 22 Aug 2008 17:57:00 EST. Please see our terms for use of feeds.

After seven months of tracking my 2008 picks -- Wham! -- I went from beating the indices and Berkshire Hathaway (NYSE: BRK.B) to being humbled by the market. However difficult it is to display your failings, once again I will share all. This is the low point since I posted the original story Chasing Value: Final list -- 8 stocks for 2008.

Only Reliance Steel & Aluminum (NYSE: RS) remained in positive territory, down from five stocks that were up in the last report. Sometimes, the reasons for the downslide were more obvious than they were in the cases for my picks. The cutting in half of Valero Energy Corporation (NYSE: VLO) has been reported often, as the largest independent oil refiner in North America has had its profit margins squeezed.

Loews Corporation (NYSE: L) has been hurt by its insurance interests and helped by its holdings -- a 51% stake in Diamond Offshore Drilling, Inc. (NYSE: DO) that has been doing well as the world remains desperate for more oil and natural gas.

The gap between the Dow Jones Industrial Average, Standard & Poor's 500 Index and the technology heavy NASDAQ Composite Index is narrower than in the past.

Continue reading Chasing Value: 8 stocks for 2008 -- June/July, that sinking feeling

Chasing Value: 8 stocks for 2008 -- June/July, that sinking feeling originally appeared on BloggingStocks on Thu, 14 Aug 2008 12:30:00 EST. Please see our terms for use of feeds.

Continue reading Chinese markets: The truth will set you free -- maybe

Chinese markets: The truth will set you free -- maybe originally appeared on BloggingStocks on Thu, 31 Jul 2008 11:59:00 EST. Please see our terms for use of feeds.

Six months of 2008 are now behind us and the stock market has not been a friendly place to most investors. Stability that was once found in household names that were industry giants is gone, and they have now been brought to their knees.

Many of them were the stocks we might have looked to in the past for stability, so you can be sure I put forward my five candidates with a little trepidation, but forward I go anyway. First a little review is in order.

Citigroup Inc. (NYSE: C) dropped from around $53 per share last year to around $30 in January and we can buy it today for around $17. Even at that price Goldman Sachs (NYSE: GS) has downgraded it to a sell and thinks there is more bad news to come. Citigroup was the largest bank in the world. Not any more.

General Motors (NYSE: GM) was the largest car maker in the world. That was before the stock tumbled from $43 to its current $11 range. A crushing blow to long time investors hoping that someone in the company could stop the ship from sinking.

Continue reading Serious Money: Five stable stocks for troubled times

Serious Money: Five stable stocks for troubled times originally appeared on BloggingStocks on Tue, 01 Jul 2008 15:02:00 EST. Please see our terms for use of feeds.

Continue reading Chasing Value: You want power, buy power -- Huaneng Power HNP

Chasing Value: You want power, buy power -- Huaneng Power HNP originally appeared on BloggingStocks on Thu, 05 Jun 2008 15:06:00 EST. Please see our terms for use of feeds.

After five months of tracking my 2008 picks, it is rewarding to finally have a breakthrough -- topping the three major stock indices and Berkshire Hathaway (NYSE: BRK.B) too. It has been painful to have to report each month that I was being bested. However, since I have not seen anything contradicting my original rationale for my eight picks I stood my ground.

This past month saw great improvement. For the first time since I posted the original story Chasing Value: Final list -- 8 stocks for 2008, five of the eight stocks are up:

Moving into positive territory by pennies was Loews Corporation (NYSE: LTR). Among its holdings is a 51% stake in Diamond Offshore Drilling, Inc. (NYSE: DO) that has been doing well as the world remains desperate for more oil and natural gas.

Bunge Limited (NYSE: BG) was the other stock to cross the line into the black, while Valero Energy Corp. (NYSE: VLO), although improving, remains my worst performer. It is still down almost 28% after five months.

The gap between the Dow Jones Industrial Average, Standard & Poor's 500 Index and the technology heavy NASDAQ Composite Index narrowed substantially so that the three are tracking each other very closely. Stocks like Apple, Inc (NASDAQ: AAPL) and Google Inc. (NASDAQ: GOOG) continue to gain significantly and their outlooks have not been shaken amid overall pessimistic economic forecasts.

Continue reading Chasing Value: 8 stocks for 2008 -- May beats all

Chasing Value: 8 stocks for 2008 -- May beats all originally appeared on BloggingStocks on Mon, 02 Jun 2008 13:01:00 EST. Please see our terms for use of feeds.

This month saw great improvement after last month's disaster. Having to conclude my findings on a specific month end day, or any day, depending on the news, sometimes distorts results. For example news on March 31 sent the market down and on April first my picks shot up an unusual amount; hopefully the trend will continue.

My riskiest stock pick Newcastle Investment Corp (NYSE: NCT) was down the most in March but recovered about 35% of the loss in April leaving Valero Energy Corp. (NYSE: VLO) the dubious honor of being my worst performer, down over 30% in the first four months of the year.

April showed improvement as many companies reported positive earnings reports or beat expectations.

The Dow Jones Industrial Average gained some ground in April as did the Standard & Poor's 500 Index, and the technology heavy NASDAQ Composite Index was up with stocks like Apple, Inc (NASDAQ: AAPL) and Google Inc. (NASDAQ: GOOG) improving significantly on very strong reports. Google is up over 25%.

Most of my picks improved. Higher food prices no doubt helped Bunge Limited (NYSE: BG) which recaptured losses moving up 23% from its recent bottom. My two winners Raytheon Co. (NYSE: RTN), the high tech defense contractor, and Reliance Steel & Aluminum (NYSE: RS) were joined by a third, Anglo American plc (ADR) (NASDAQ: AAUK) which had a 10% swing entering positive territory.

Continue reading Chasing Value: 8 stocks for 2008 -- April Bunge's back

Chasing Value: 8 stocks for 2008 -- April Bunge's back originally appeared on BloggingStocks on Thu, 01 May 2008 15:58:00 EST. Please see our terms for use of feeds.

• Amazon.com Inc. (NASDAQ: AMZN) profits rose 30%, easily beating analysts' expectations.
• AMETEK Inc. (NYSE: AME) beat Q1 estimates on global strength and recent acquisitions.
• Apple Inc. (NASDAQ: AAPL) easily beat Q2 expectations but offered a weak outlook.
• AT&T Inc. (NYSE: T) posted strong Q1 results thanks to the popularity of the iPhone.
• Baidu.com Inc. (NASDAQ: BIDU) beat earnings and saw an upgrade from Citigroup Inc. (NYSE: C).
• Broadcom Corp. (NASDAQ: BRCM) Q1 profit soared, and it raised its guidance.
• Cymer Inc. (NASDAQ: CYMI) beat Q1 estimates and announced a share million buyback program.
• Electronic Data Systems Inc. (NYSE: EDS) posted Q1 profits on cost cutting and new contracts.
• EMC Corp. (NYSE: EMC) Q1 earnings fell on on acquisition-related charges.
• Hexcel Corp. (NYSE: HXL) beat Q1 estimates on increased commercial aerospace sales.
• Huaneng Power ADS (NYSE: HNP) earnings plunged on coal prices, but the stock went higher.
• Level 3 Communications Inc. (NASDAQ: LVLT) narrowed its loss on higher sales of networking services.
• McAfee Inc. (NYSE: MFE) Q1 profit plunged on product development and marketing costs.
• MEMC Electronic Materials Inc. (NYSE: WFR) missed analysts' estimates for the first quarter.
• Microsoft Corp. (NASDAQ: MSFT) beat earnings expectations and raised its full-year guidance.
• Netflix Inc. (NASDAQ: NFLX) profit soared in the first quarter on increase in subscriptions.
• Nintendo Co. (OTC: NTDOY) posted record results due to the popularity of the Wii system.

Continue reading Earnings highlights: Microsoft, Yahoo!, Apple, Amazon, Texas Instruments and others

Earnings highlights: Microsoft, Yahoo!, Apple, Amazon, Texas Instruments and others originally appeared on BloggingStocks on Sat, 26 Apr 2008 14:40:00 EST. Please see our terms for use of feeds.

Watching one of your largest holdings go up in value is a vision of joy. The same is not true on the way down. Huaneng Power ADS (NYSE: HNP) is indeed way down from its high of $57.50. I recommended the stock last year at $26.50 and looked brilliant until last month when it completed retracing its upward trajectory back to that level.

The company reported an 80% drop in earnings attributed to higher coal costs Tuesday. However, today the value buyers must be back in droves because the stock closed up almost 16% as one of the day's big movers. The stock closed at $30.25, up over $4 per share. The following three-year chart captures the drama.

Continue reading Chasing Value: Huaneng Power reports 80% drop in earnings -- stock up

Chasing Value: Huaneng Power reports 80% drop in earnings -- stock up originally appeared on BloggingStocks on Wed, 23 Apr 2008 17:05:00 EST. Please see our terms for use of feeds.

"For global income investing, I ran a screen of Chinese ADRs, and my favorite from the list is Huaneng Power (NYSE: HNP), with an indicated yield of 5.3%," says Nilus Mattive, editor of Dividend Superstars.

"Tons of power is being consumed in China, and Huaneng is right there to serve it up - the company is China's largest independent power producer. All told, Huaneng owns 17 plants outright, controls another 12, and has minority interests in five power companies.

"Profits have been rolling in at a steady clip. However, investors have recently become concerned about shrinking profit margins at Chinese utilities.

"There is certainly cause for concern: Coal is the main power source for utilities' plants, and the price of the raw material has been rising because of increased demand around the world. To make matters worse, the severe winter weather that struck China in January pushed up coal prices even further and created a
whole host of other challenges for Chinese utilities.

"However, it looks to me like investors have been far too aggressive in their selling. They're now pricing Huaneng at 10.5 times next year's earnings. The stock is so oversold that it's currently yielding 5.3%.

"What about the coal situation? Well, I think supply and demand will come back in line, and I also think this politically well-connected company will be granted price hikes to compensate for its higher input costs. I recommend income investors buy at the market."

Each day, Steven Halpern's TheStockAdvisors.com offers the latest market commentary and favorite investment ideas from the nation's leading financial newsletter advisors.

Huaneng (HNP): Dividend power play originally appeared on BloggingStocks on Tue, 15 Apr 2008 09:45:00 EST. Please see our terms for use of feeds.

After three months it is time to face the facts: two of the three indices beat my picks handily. I have not made a good showing so far and unlike most investment idea sources, I feel obliged to air my dirty laundry for all to see.

My riskiest stock pick Newcastle Investment Corp (NYSE:NCT) is down almost 37% this year, and the energy stocks did almost as poorly even though fuel prices are near all-time highs. The downers were not offset by this months' repeat winners.

March was a seesaw battle, but in the end there was not much to show for it. However, unlike the last day of January (down 370 points in the Dow) and February's last trading day (down 315 points), March had a final day of plus 46.49, which is not very meaningful.

The Dow Jones Industrial Average gave some ground in March as did the Standard & Poor's 500 Index while the technology heavy NASDAQ Composite Index was marginally up with stocks like Apple Inc (NASDAQ:AAPL) improving notably.

Most of my picks sagged a little more, while two remain in positive territory. Raytheon Co. (NYSE: RTN), the high tech defense contractor is up and Reliance Steel & Aluminum (NYSE: RS) is way up.

Continue reading Chasing Value: March review -- 8 stocks for 2008 -- not so refined

Chasing Value: March review -- 8 stocks for 2008 -- not so refined originally appeared on BloggingStocks on Mon, 07 Apr 2008 15:18:00 EST. Please see our terms for use of feeds.

Two months into the year and investors' true 'metal' was tested, and mine more than most. February showed signs of improvement over January, but the last week ended hopes of any rally. The last day of January saw a 370 point drop in the Dow and February's last trading day closed with similar results, down 315 points.

The soft stock market did display many points worth noting. The Dow Jones Industrial Average was about break even for the month, indicating investors were showing some signs of support for large cap stocks, prompted in part by news of increased profits at Wal-Mart (NYSE: WMT) and share buy-backs at IBM Corp (NYSE: IBM).

I cannot say the same for the other major indices, NASDAQ Composite Index and Standard & Poor's 500 Index, which dropped significantly last month.

Some of my picks also sagged a little more, although not as much, while two turned into positive territory. In January, only Raytheon Co. (NYSE: RTN), the high tech, defense contractor, was up. In February, the weak dollar and inflation concerns boosted Anglo American plc (ADR) and Reliance Steel & Aluminum (NYSE: RS) -- two commodity plays.

Continue reading Chasing Value: February review -- 8 stocks for 2008 -- testing my 'metal'

Chasing Value: February review -- 8 stocks for 2008 -- testing my 'metal' originally appeared on BloggingStocks on Mon, 03 Mar 2008 14:55:00 EST. Please see our terms for use of feeds.

January was a wild ride and February holds the promise of more of the same after yesterday's 370 point drop in the Dow. All the major indices were down in January and so were seven of my eight picks. Only Raytheon Co. (NYSE: RTN), the high tech defense contractor, was up. My two high flyers from last year, Huaneng Power International, Inc. (ADR) (NYSE: HNP) and Valero Energy Corp. (NYSE: VLO), were the biggest losers.

I have not changed my opinion of these stocks from that of the original story Chasing Value: Final list -- 8 stocks for 2008 and I am following them closely for buying opportunities. We have already added more Newcastle Investment Corp. (NYSE: NCT) and Huaneng Power to our holdings.

Among the indices, the DJIA lost the least and the NASDAQ lost the most. The average return for my eight picks was -7.82%. This underperformed the average of the indices that was -7.58% -- but my new stalking horse Berkshire Hathaway (NYSE: BRK.B) bested both, so Buffett is still the man.

Now including dividends for my picks which average 3.91% divided by 12 for the one month allows for an additional .326%, reducing the loss to -7.494%. Using 1.8% for the average dividend of the indices divided by 12 adds 0.15%, reducing the loss to -7.43%. The dividends tighted things up. BRK.B does not pay a dividend.

The following are my eight picks with the starting share price as of December 28, 2007:

Continue reading Chasing Value: January review -- 8 stocks for 2008

Chasing Value: January review -- 8 stocks for 2008 originally appeared on BloggingStocks on Wed, 06 Feb 2008 12:44:00 EST. Please see our terms for use of feeds.

I recently posted Chasing Value: Final list -- 8 stocks for 2008 and mentioned that all of them pay a dividend. If this year is going to be as gloomy as some would have you believe, then stocks that pay dividends, as a group, will outshine those that do not.

The following are my eight picks, with the closing stock price as of my start date December 28, 2007 and the dividend yield. Last year, there were more stocks among my picks that paid a dividend higher than the S&P 500 Index average of 1.8% . This year there are only two.

• Anglo American plc (ADR) (NASDAQ: AAUK) $30.79. 1.9%
• Bunge Limited (NYSE: BG) BG was $119.03. 0.56%
• Huaneng Power International, Inc. (ADR) (NYSE: HNP) HNP was $41.75. 3.5%
• Loews Corp. (NYSE: LTR) at $49.35. 0.50%
• Newcastle Investment Corp. (NYSE: NCT) was $13.08. 22%
• Raytheon Co. (NYSE: RTN) RTN was $61.51. 1.65%
• Reliance Steel & Aluminum (NYSE: RS) $54.32 per share. 0.58%
• Valero Energy Corp. (NYSE: VLO) VLO was $70.55. 0.66%

Continue reading Chasing Value: Final 8 -- love dividends

Chasing Value: Final 8 -- love dividends originally appeared on BloggingStocks on Mon, 07 Jan 2008 14:40:00 EST. Please see our terms for use of feeds.

A few days behind schedule, but here is my list of eight stocks. Included in the list there are two holdovers from the 2007 list of seven stocks. I do not see any value in creating an entirely new list when I have done well over the years riding the winners. This is particularly true if the reasons you bought the stock in the first place remain valid.

These eight picks for the year will be tracked monthly with updated results. The initial share prices are from December 28, 2007. They are focused on defense, energy, food, gold, metals, mining, oil, power, and every one pays a dividends. The following are my "Quick Takes" in alphabetical order with links to the complete stories.

Anglo American plc (ADR) (NASDAQ: AAUK) is a world-class player in precious metals, diamonds, and commodities, which are all growing in demand. When the world economy is booming, all of its mining products are sought after, and when the market runs scared, gold goes up. It pays a dividend yield of 1.9% and is trading almost 25% off its 52-week high. For full story: Chasing Value: Anglo American diamonds and gold are your best friend. The closing price on December 28, 2007, for AAUK was $30.79.

Continue reading Chasing Value: Final list -- 8 stocks for 2008

Chasing Value: Final list -- 8 stocks for 2008 originally appeared on BloggingStocks on Sat, 05 Jan 2008 15:10:00 EST. Please see our terms for use of feeds.

I have wriiten so much about Huaneng Power International ADR (NYSE: HNP) that I am not sure there is much more to say. This is another one in my must-own category, so it is just a matter of when you get in. Most of my sentiments can be found in Volatile Markets: Huaneng Power (HNP) is my pick for the next 50 years.

HNP pays a sizable 3.6% dividend yield and has plenty of room to run. It has come down a lot with the rest of the inflated Chinese stock market, but this one is not threatened by competition and is a good long-term value. It is the largest utility company in China, entrenched in government projects and receives support that would be full of conflicts of interest in a western economy.

I have made the case recently that electric utilities have been great investments over the long term in Serious Money: Electric utilities are the place to be, and I am still a believer. China's growth curve will continue to dwarf that of the United States. It takes electricity for all the things you know about and many you do not. I am not sure that the average investor is aware for example that the production of aluminum consumes a lot of electricity. And it is being used in increasing amounts as reducing energy costs often means reducing weight.

Aluminum is used in windows, cars, planes, electronics, and this is a great trend to follow as well. One of my top picks last year was Aluminum Corp of China ADS (NYSE: ACH), and I would have included it here if not for its sky-high price.

Continue reading Chasing Value: Huaneng Power still the one in China

Chasing Value: Huaneng Power still the one in China originally appeared on BloggingStocks on Sat, 05 Jan 2008 12:10:00 EST. Please see our terms for use of feeds.