Chinese Investments

I have researched ways to invest in China and would like to focus on two interesting companies in this post. These companies should continue to do well as commodities surge ahead and the price of food staples and energy continue to rise. I chose to focus on companies whose shares can easily be purchased on American exchanges making the research, buying, and selling easy money and a good introduction to investing in China. Both companies also share interesting names that at first glance may lead you to wonder if they are in fact Chinese companies.



The first company is American Dairy, Inc. ticker symbol ADY on the NYSE. This dairy company is not actually American , but a holding company for Feihe Dairy Company and a few other wholly owned subsidiaries which are all Chinese. They produce a variety of milk and soy milk products for sale in China. Their shares trade near 52 week lows as does most of the market, however, most food commodities have seen shortages and price increases and I believe ADY's products will see similar increases. They continue to grow revenues over 50% while only increasing production 35%! This will eventually trickle down to income growth and make a big impact on their stock price. Also keep in mind that everyone is looking for commodity plays, especially in BRIC countries, and will eventually find ADY in the process. Full Disclosure: I am currently purchasing shares of ADY.



The second company is Canadian Solar, ticker symbol CSIQ on the Nasdaq. This Solar company is incorporated in Canada, but conducts all of it's manufacturing operations in China. They announced great numbers and gave a great outlook for the future blowing away expectations and drove the shares higher. It's important to note that the majority of their sales are to Europe (97.3%) with only 2.3% coming from Asia and less than half a percent from the U.S.! Solar power is the future of energy and has spread like wild fire throughout Europe and Asia. In case you didn't know China uses more household solar energy per capita than any other country in the world! I would like to get in this stock around the $20/share or less price so I am waiting for the recent news to wear off before jumping on this one.



Bonus companies: I'm going to throw in a couple more Chinese solar plays. Solar was the darling of the market a year or more ago, but they have been thrown under the bus along with other energy plays over the past six months or so which has done away with all the speculators. Solar sales meanwhile have increased as the shares have gone down creating some attractive buying opportunities. Trina Solar ticker symbol TSL. This stock has been hammered despite having over 150% revenue growth and over 250% income growth! Another entry is LDK Solar ticker symbol LDK. Another stock that has been hammered even with almost 400% revenue growth and over 100% income growth!



Please take a look at the stocks mentioned in this post and leave some comments to let me know what you think, Thanks.



Easy Money Management’s editorial goal is to provide a forum for personal finance and investment ideas. My blogs and other features should not be construed as investment advice. An investor's best course of action must be based on individual circumstances

What's in the Works?

What's in the Works?

You may be wondering what I am currently researching for investments so here is a taste of what's in the the works.

China

The most exciting area for investment that I'm researching is China. Last year I made over a 60% gain investing in Hang Seng and Shanghi market ETFs! This was after being down over 20% shortly after making the initial investment! How is that for market volitility and amazing growth potential? Being a prudent trader, profits were taken and I currently don't own any Asia specific stocks or ETFs. I am, however, now looking at individual stocks in Asia and especially investigating converting my "falling" U.S. dollars into Chinese rinmenbi and Hong Kong Dollar denominated assets which have no where to go but up. I heard an interesting analogy recently that put this opportunity into perspective; China now in 2008 is much like the United States of 1908, poised for a century of astonishing growth. Stay tuned for where and how I will be investing in China.

Property

Right now is a great opportunity to purchase property at significant discounts compared to just a year or two ago. The whole mortgage meltdown has caused mass panic by everyone, even those who are in areas that should stand the test of time. Interest rates are low and even the conforming limit has been raised making purchases in the bay area possible at low interest rates. I am currently searching daily for short sale and foreclosure opportunities in San Francisco and have found some properties that are even cash flow positive in some cases due to the discounts which is unheard of in the city by the bay. Stay tuned for more on these "fire sale" opportunities.