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March 21, 2010

Investing In Chinese Companies

China's economy has been soaring for some time.  It is possible the growth potential is only at the starting point. During the years of its world seclusion. China as a country amassed trillions of dollars in its coffers. American companies that have relocated some of their operations to China has added even more capital to the China economy.  The Chinese are wise investors and do not seem to make a bad deal in any of their financial transactions.  China calls the shots in the deal making process.

This year in particular China is going through a massive infra structure and building phase within China to prepare for the 2008 Olympics.  This factor has increased China's tremendous building phase in manufacturing aluminum, building trades and the railroad industry. In the area of communication China has stepped up its manufacturing and distribution of products. China also has plans to build a small economy car called the Chery Automobile.

For all the reasons mentioned above and the overall strength of the China economy this could be a good time to buy China stocks.  The average American can purchase China stock on the New York Stock Exchange and NASDAQ Exchange.  The other avenue available is the mutual fund or spider that is geared to Asian or China investments only.  These funds do exist and are doing exceptionally well.

Specific China Stocks:

The need for raw materials and manufacturing of materials is a high priority for China. One particular shining star is Aluminum Corp China.  It trades on the New York Stock Exchange under the stock ticker ACH.   This is an $8.7 billion dollar market cap company. It has seen tremendous gains in the past two years.  The growth spurt almost seems endless due to China's demand for aluminum and other metals.  The stock is currently selling in the high $60 range.  The major institutional holders are John Hancock Trust-Natural Resources, Allianz, Goldman Sachs and other prized investor funds.

In the technology areas Chinese companies have some interesting choices. The web company and software technology and mobile phone application company CDC Corp. is a low cost stock to watch.  The stock sells under the stock ticker CHINA.  It is currently a $6.40 stock that can easily make its mark at $11 and higher. The Olympic 2008 event in Beijing is expected to boost their technologies.

A great information and search engine company is Baidu. It trades under the stock ticker BIDU.  For whatever reason the brains on Wall Street love this stock.  It sells in the $200 plus range, but it rivals the likes of Google.  It is a stock to watch.

Mutual Funds:

The investor looking to invest in China and Asian Markets should definitely consider the mutual funds offered by various family of funds. Nearly all of the large fund companies have a fund that is designed for for exposure to the growth in China.  Alger China Growth, Thornburg Global Opportunities,  Evergreen Opportunities Fund, American Funds, Oppenheimer and Allianz all have great funds with good returns.

If you are interested in China stocks discuss it with your advisor or ask one of the funds mentioned above to send you a prospectus.

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March 18, 2010

What Exactly Are Blue Chip Stocks?

Blue Chip Stocks are quality stocks that have a proven track record. A Blue Chip stock is like a member of the family in the American pastoral landscape. The Blue Chip stock makes toilet paper, laundry soap, aluminum, steel , washing machines and just about every well known brand we used every day  The Blue Chip stock is Bank of America, U.S. Steel, Proctor & Gamble and others we think of as being our companies.

In times of uncertainty and for long term investors the Blue Chip stocks are a part of every portfolio either in direct stock purchases or through mutual funds.  The Blue Chip stock is a large cap company and has decades and even a century of presence on the stock market.  Some Blue Stock stocks are relatively new players like Home Depot or the result of a merger & acquisition. If you look around your house and around your town the brand products you use or have come to rely on are Blue Chip stocks.

The fact is that we take for granted the Blue Chip stocks both in our familiarity as an end user, but often times in the stock market.  The Blue Chip stocks make up the S&P500 index. These stocks as a whole can be purchased as an index fund. Some Blue Chip stocks make up the Dow 100.  These stocks on the whole are a bell weather of how the overall market is doing.

Like any familiar item the Blue Chip stocks become like a comfortable old pair of sneakers.  We know where they are and they are easy to slip into, but they may not be as exciting as say Google or Baidu. In recent months some of the Blue Chip stocks have been a flight to safety for some investors. Not all Blue Chip stocks are alike, but some have been grossly undervalued and therefore a good buy.

Ways to invest in Blue Chip stocks:

The investor can pick and choose a Blue Chip stock and buy it through a stock broker or on-line with a trading company like Scotttrade or E*Trade. This gives you access to the companies performance on the short term and charts going back at least 10 years.  The investor can access the companies financial reports and quarterly earnings on-line. The investor can ask the company to send you a company prospectus.

There are index funds of Blue Chip stocks that can be bought through a financial brokerage house.  There are mutual funds that are designated as Blue Chip Funds in most family of funds offered in all of the major mutual funds companies. There is even a mutual fund company that offers a spider fund comprised of Blue Chip stocks that is similar to the S& P 500.

The variety of ways to invest in Blue Chip stocks is endless. Spiders, Index funds, and hybrids in between. There are option contracts and some tricky investments that only a really savvy trader can advise you about.

The Blue Chip stocks merit a good review in all times not just in times of market uncertainty.

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March 4, 2010

Investing In Green & Eco-Friendly Stocks …

The socially conscious investor will find a wide range of  Eco-friendly stocks and mutual funds to choose from, both small and large.  Due to the influence of world-wide concern over global pollution and carbon dioxide, the investor will find many large corporations are snapping up green companies to add to their list of products.

A recent acquisition by Royal Philips Electronics (headquartered in the Netherlands) of Color Kinetics, trading on the NASDAQ as CLRK is a great example.  Color Kinetics was a ten-year-old company that produced environmentally friendly lighting through its enhancement of the LED (light-emitting-diode) technology to create a new type of illumination.

Color Kinetics utilized digitalized technology to create a new source of controllable illumination.  The merger between the giant Philips and Color Kinetics will enhance its Philips Lighting Solutions market in the LED technology.  Color Kinetic has existing installations world wide and a huge customer list, with relationships in China and the UK. Philips, in turn will, provide its 60-country-presence to the Eco-friendly technology of Color Kinetics. Investors should not rule large conglomerates in their search for Eco-friendly stock.

Small Cap Companies:

For investors that enjoy investing directly in small cap companies there are numerous opportunities for investors in AMEX.  These stocks are very reasonable in price and may provide future gains as going green becomes an integral part of business and not just a slogan.  I have watched some Eco-friendly companies grow over the past several years and the following is a highlight of some interesting stocks.

Environmental Power Corp. trades under the ticker EPG on the AMEX exchange.  This stock currently sells in the $5 range.  The company and its subsidiaries engage in the ownership, development and operation of renewable energy facilities in the United States.  EPG owns 83 leasehold of land. It has plants that utilize animal and food industry waste to produce bio-mass and other forms of alternative fuel that utilize their renewable energy biogas.  A good reason to give this company a good look is that it filed a notice with the SEC that it has a firm commitment from an underwriter to make and offering of over four million shares of his stock. If the offering goes forward the company could realize a gain in the price as well as an infusion of over 22 million dollars.

There is another stock that has great promise in the fuel cell area.  This area has room to grow.  I particularly like Fuel Cell Energy. It trades under the stock ticker FCEL.  The company has a market cap of approximately 650 million.  The company is in the development, manufacturing and sale of fuel cells power plants for use in electrical power plants.  Its pipeline products are geared for use in health care facilities, hotels, hospitals, universities, governmental offices and water treatment centers.  The company is located in Connecticut with office in Korea, Japan, Canada and Europe. This $9 stock has no where to go but up in the long term.  Another reason to think twice about this company is the major holders of stock in the company.  Wells Fargo Bank, Barclays, Deutsche Bank and other prominent funds are invested in FCEL.

A stock that is a good value, but lacks appreciation is Calgon Carbon Corp. in Pennsylvania.  The company trades under the ticker CCC. The company is in the business of providing means to clean the air and water.

The company has been around for a good period of time and it appears that 2007 may be its year to take a solid place in Eco-friendly stocks. It currently sells in the $13 range and deserves a good review.

There are numerous ways to get into the green, Eco-friendly stocks.  There are mutual funds and indexes available. In addition there are segments in wind, health foods and solar energy that have opportunities for investment.

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