What I am Researching

Well it's been a long time since my last post, but I am still looking in the same place for stocks to buy, China. Here's is a list of what I am currently researching:

Guangshen Railway Co. symbol GSH
Income and balance sheet look good and if Buffett thinks rails will do well in the US I can only imagine how well the rails in China will do! Chinese imports are skyrocketing as they start to use the trade surplus they have accumulated to help increase the incomes of it's people. All these imports will need the infrastructure of the rails to move these from the ports to the people and GSH will be a major beneficiary. How about an almost 3% yield to collect while you watch this rail roll?

American DairyInc. symbol ADY
This stock quadrupled for me, I took profits, no longer have a position, and now that it has retreated by about 45% I am gaining interest in building a position again. ADY is the premier Milk product company, especially for infants, in China and was not in any way involved with the tainted milk scare that happened in 2008. Looking to start a position around the $20 level.

Is this the Bottom?

Well with the largest bank failure in history now in the books, as Wamu is seized and sold by the FDIC, we may now have a bottom in the financials. By all measures and calculations this is the largest financial meltdown in history and could only reach a bottom after having the largest bank failure in history. Another sign we may be at the bottom is the greatest investor in our lifetimes, Warren Buffett, investing $5 billion in Goldman Sachs. Also if they pass the 700 billion dollar bailout as currently proposed, it would ensure the rest of the big banks will be on the road to profitability once again.

So what does this bottom mean and how can this help us make some money? Let's take a cue from Buffett and begin investing in good dividend paying financial stocks. Be sure to look at preferred shares of the major banks to invest in such as Wells Fargo, Bank of America, JP Morgan, US Bank, and Goldman Sachs. Sticking to preferred shares will decrease the chance your dividend will be cut and should be a lot less volatile than the regular shares. Staying with the big boys should ensure that your shares will benefit most if the bailout goes through.


Do you think this is a bottom in the financials?
Do you know how to find preferred share information?