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Posts with tag tony sagami

China Mobile (CHL): More than just talk

"Growth investors can hitch their portfolio to any number of Asian stars; I think one big winner is going to be China Mobile (NYSE: CHL)," says Tony Sagami in his specialized Asia Stock Alert.

"Mobile phones are much, much more than telephones to Asians. If you travel to Asia, one of the first things you'll notice is how most locals walking down the street have mobile phones glued to their ears.

"It would be a big mistake to think of China Mobile as simply a mobile phone provider. In addition to traditional calling services, the company offers value-added services such as voice mail, conference calling, instant messaging, text messaging, as well as accessing the Internet.

"Even though the price of computers has fallen dramatically in the last few years, a personal computer (PC) is still out of financial reach for the average Chinese. Meanwhile, mobile phones are both cheap and capable of many of the same functions as PCs.

"Look, $500 to $1,000 dollars for a PC may seem reasonable to you and me, but that is a small fortune for the typical Chinese consumer, who makes less than $3,000 a year.

Continue reading China Mobile (CHL): More than just talk

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

Las Vegas Sands (LVS): Gamble on Macau

While many know that Bill Gates and Warren Buffet are the two wealthiest, Tony Sagami notes that few know the third: Sheldon Adelson. In his Asia Stock Alert, he explains, "Adelson is the founder and CEO of Las Vegas Sands (NYSE: LVS), our latest featured stock." Here, he looks at the gaming company and its bright prospects in Macau.

"Due to its strategic location in the South China Sea, Macau has a rich history as an Asian trading hub. To this day, it looks more European than Asian. And its popularity with tourists is absolutely exploding - an
estimated 27 million visited Macau last year.

"The majority (55%) came from mainland China, but many more visited from Hong Kong (30%) and Taiwan (9%). These tourists are flocking to Macau not because of its history or picturesque seaside location. They're coming to gamble.

"And boy, did they gamble! On my last visit to Macau, I saw table after table filled with boisterous high rollers routinely making $100,000 bets. These 'whales' account for about 80% of Macau's gambling revenues.

"Today, Macau has become the Las Vegas of China. It is the only city in the region with fully legalized gambling. And gambling is deeply engrained in the Asian culture. Plus, Macau is within a five-hour flight of three billion people - nearly half the world's population.

Continue reading Las Vegas Sands (LVS): Gamble on Macau

Six China stocks set to take home Olympic gold

"The Olympics have long been a boon to stock markets of host countries," notes Tony Sagami, a leading global stock advisor with a noted specialty in Asian markets.

In his Asia Stock Alert newsletter, he notes, "I believe the chief beneficiaries of the Olympic Games will be consumer and travel-related stocks. And within these sectors, I've chosen six stocks poised to bring home Olympic gold from Beijing."

"We saw a 19% gain in the Spanish stock market in the 12 months before the 1992 Barcelona Olympics, and the 27% gain in the Greek stock market in the year before the 2004 Athens Olympics. And those countries were not growing at a fraction of the breakneck pace that China is. So it wouldn't surprise me to see the Chinese stock market do even better.

Olympic Gold Winner #1: China Mobile (NYSE: CHL):

"It seems like every person I see in China has a cell phone glued to their ear. And the cell phone is not just the primary voice communication medium in China; it is also the common way most Chinese access the Internet and email. In China, the cell phone 'is' the personal computer.

"Heck, most new high-rise condominium and apartment complexes being built in China aren't even wired for land lines. Once you understand the device's role, you'll see why China Mobile has more cell phone users (360 million) than the U.S. has people. I expect a lot of cell phone calls and text messages during the Beijing Olympics!

Continue reading Six China stocks set to take home Olympic gold

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)

Best energy ideas: Cameco (CCJ), the 'Saudi Arabia' of uranium

"Nuclear power is about to enter a new phase of rapid growth," says Tony Sagami. "Plain and simple, the demand for uranium is going to go through the roof."

"What's the best way to profit from this unstoppable trend?" he asks. In his Asia Stock Alert, he answers: Cameco Corp. (NYSE: CCJ). "The biggest producer of uranium in the world should be a cornerstone of your natural resource portfolio.

"According to the World Nuclear Association, there are nuclear power plants 34 under construction, 86 on order or planned, and 223 proposed. By 2013, 48 additional nuclear power plants should go into service, and over the next 10 years, an additional 100 plants will be built, with 40 of them in Asia.

"All those new nuclear power plants, of course, are going to need uranium. Next year, uranium demand is estimated to hit 83,000 tons. But according to the Uranium Information Centre, the world only produced 46,720 tons of uranium last year.

"We're talking about a huge increase in the demand for uranium and a severe production shortage. That is, of course, extremely positive news for uranium prices and uranium producers.

Continue reading Best energy ideas: Cameco (CCJ), the 'Saudi Arabia' of uranium

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

Advisor issues flash alert: Buy Altria ahead of tomorrow's earnings

In line with the market maxim, "sell on the news," numerous financial media pundits have looked at tomorrow's earnings report from Altria Group (NYSE: MO), and its likely announcement to restructure, as a reason to sell.

Going counter to this, Tony Sagami, editor of The Asia Stock Alert, has just issued a "flash alert" telling his newsletter subscribers to buy in advance of the meeting.

He explains, "Altria is going to report its fourth quarter results on January 31. Sure, Altria will probably deliver a dynamite earnings report, but the stock-jumping news that I can't wait to hear are Altria's reorganization plans."

He notes that in addition to its Phillip Morris tobacco operations, Altria owns 87% of Kraft Foods and 29% of SABMiller, the second largest brewery in the world. He says, "I expect Altria to announce plans to spin-off those two units which should unleash billions of dollars of additional shareholder value."

Indeed, he feels, "It is this reorganization that makes now the time to buy Altria. He notes that Altria has wanted to split up its company for a while, but couldn't because of its tobacco lawsuits. Now, however, he notes, "Those litigation threats have largely been settled or dismissed, paving the path for Altria to reorganize into four separate divisions: Kraft, SABMiller, Philip Morris USA, and Philip Morris International."

Continue reading Advisor issues flash alert: Buy Altria ahead of tomorrow's earnings

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Last updated: August 21, 2008: 09:46 PM

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