Breaking News: China Cuts Investments to the US

China, foreign investment December 6th, 2008

According to Robert Hsu’s latest email report, China’s sovereign wealth fund has decided to cut its investments to the US.

He says that “the $200 billion China had earmarked for overseas investments will now be plowed back into China Banks… the nation also plans to spend another $586 billion on new highways and railroads.”

But can you trust someone who can’t get the spelling difference between “their” and “they’re” right?  Hsu makes a lot of spelling mistakes for a professional of any kind.  I don’t think such things are fluff or frill.  Spelling is constitutional of language use and reflects upon someone even after they’ve left university.  If anything, it means he wrote his letter in haste and wasn’t concerned to look it over and didn’t put Quality into it.  Even worse, maybe he gets someone overseas to write it for him and thus he and his own expertise has very little to do with it at all!

Do you receive Roberst Hsu’s letters?

Can you confirm that China’s sovereign wealth fund(s) have stopped future US investment?

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Robert Hsu’s ChinaProfitStrategy Recommendations

China, books November 17th, 2008

Some of you may already know Robert Hsu, whose book on investing in China came out earlier this year.  You can read a review of it that I wrote - just click on the “books” link in the top right and then check out my post on the books I’ve read since January.

Well, Robert Hsu also runs an email-list-serve-type newsletter (it’s free) which is basically an advertisement for his real newsletter which costs upwards of $99/year (I think; if you get it on sale).  It’s touted as the best investment newsletter for China right now.  Hsu is from China and goes back there regularly.  He likes to remind us that he has “people on the ground” there who know what’s really going on.  And I believe him - I read his book in about four days flat, soaking it all up.  There’s a lot of good info in it and I recommend it to people who aren’t that familiar with China.

I receive Hsu’s newsletter in my email, but I don’t always get around to reading it lately.  Have you read it?  What’s your opinion on Hsu and his advice?

Just to give you a bit of a taste of the sort of things he writes about, I’ll quote a little bit from it here.  It includes a list of some of the stocks he’s been promoting since writing his book.  Be warned, though: he’s not a buy-and-holder - he trades in and out.  So when it says he’s gained 54% or whatever, that will be from a one-time jump.  Anyways, you can judge for yourself:

Excerpt from Robert Hsu, ChinaProfitStrategy

When you consider the U.S. economy is projected to contract next year while China is on track to grow at 8%, you don’t have to be an Einstein to know that the surge in China stocks will form the foundation for a turnaround in the U.S. stock market as many leading China stocks are traded right here on the NYSE and NASDAQ.

The bottom line is this:

In a world that’s been crippled by the U.S. financial crisis, the Fed bailout and collapsing consumer and investors confidence, the flood of capital pouring into China will not only put powerful upward pressure under the stock prices of companies that are fueling China’s new growth…but also change the face of Wall Street forever.

Which is why I’m telling my readers to expect…

20%—40% Profits
In The Next 12 Months

The Biggest Move Will Come
In The Next 15 Days

As you know, nobody rings a bell to tell you when the big buying wave will begin, but I can tell you this:

Our time-proven, momentum-based stock-picking system continues to deliver profits for our readers, not only beating the market by more than $8-to-$1 since 2005…but also thrashing the market by $7-to-$1 last year, specifically with 35% returns vs. 5% for the Dow.

Our biggest winners to date include:

CNOOC, +30%
Aluminum Corp of China, +285%
New Oriental Education, +127%
Mindray Medical, +20%
Sinopec, +58%
SPDR Gold, +27%
Apple, +118%
Las Vegas Sands, +52%
Yum Brands, +12%

Now with China’s second wave set to deliver even greater growth, even these great gains could look like a drop in the bucket.

Frankly, no other investment newsletter advisory in the world knows the China market like we do, spends as much money on research as we do or makes as much money in China as we do.

Which is why I can tell you with unmatched certainty that our research shows there’s a buying wave forming within the next 15 days.  That is also why you can invest in our recommendations with confidence that you’ll grow 20%-40% richer in the next 12 months.

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Migao Corporation: A China and Potash Play All-in-One

China, agriculture, commodities July 31st, 2008

I’d forgotten about the Migao Corporation (TSX: MGO) several posts back when I wrote about junior Canadian potash plays (see related posts, below).

Migao was once (prior to 2006) a private, wholly-Chinese owned company, but then became a Canadian, China-based company traded on the Toronto Stock Exchange in May 2006. It has offices in Toronto and Beijing.

If you want to capitalize on China’s need for potash, I don’t think you can get much closer than Migao, which specializes in processing potash, turning it into fertilizer and selling it directly to the Chinese market.

Recently, (May 2008), Migao raised the prices of its fertilizer and also received a patent on their production process. MGO is still a bit pricey (PE at 23), but has significantly pulled back from its 52-week high around $12 CAD. Their earnings are right now around 34 cents/share.

I’ll be watching this one and picking it up when I get a chance. How does it look to you?

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