Invest in a Small-Cap Way to Clean up China Editor’s Note: Today, we have a special contributor from one of our sister publications, Whiskey & Gunpowder. Jamie Ellis has been regularly contributing to the free rights-lovin’ and government-hatin’ newsletter for a few months now. Also your faithful editor, Greg “Gunner” Guenthner, has a way for you to “clean up”… The China Syndrome By Jamie Ellis December 18, 2007 The sun rises over Shanghai, cresting the towering skyscrapers that have become a signal of China’s recent rapid growth. The morning sun brings rise to a new day in a country where over one billion people have recently awoken from their long economic slumber. Like any other day, this one will be spent producing the products that we in the U.S. use every single day.
It is no secret that the U.S. is currently operating under a trade deficit with China. As it stands right now, the U.S. imports $202 billion more than it exports from China. There are several intrinsic reasons for the deficit. The population of China is more than four times that of the U.S. That means that China has an overabundant work force. China also does not have the wage controls that we are used to in the U.S. Over 100 million members of the Chinese labor force live in rural areas and are forced to commute to industrial areas and compete for factory work. This drives the already low wages down even further. The cost for companies to produce their products can remain much lower compared with those costs in the U.S. American consumers have fallen in love with the influx of cheap products that continue to roll in from China. This has added to the great demand for Chinese-produced items, which has energized China’s once Stone Age economy. With the economy in full swing, China has been able to become the industrialized and modern nation that we have seen. ************************************ The $308 Million “Compressed Investing” Secret From 2001 to the end of 2005, we turned an initial investment of $5,000 into exactly $1,051,118...and averaged an incredible 103.9% gain for every single play we made in that time. I'm going to show you how in a sec… I'll even give you $250 right up front...just to give this same strategy a try. Plus, I'll give you a stunning guarantee: Do this and I guarantee you'll have at least 12 opportunities to double your money just over the year ahead. Check it out here… ************************************ A Growing Concern — Paying the Price for Success This kind of growth does not come without a price. With the rise in the industrialization of its factories and other means of production, along with general and sweeping lifestyle changes of its population, China has now become one of the leading consumers of foreign oil. This is straining the already dwindling world oil supplies, while sending the global costs skyrocketing past record highs. China also does not pose strict environmental and pollution restrictions on its manufacturers the way we do. This only adds to the ease and affordability of Chinese production, while doing nothing to curb the use of fossil fuels and other polluting energy sources. The problem with China’s overuse of energy has many components. Chief among them is the ongoing free-rider problem that has come no closer to being corrected: Individuals receive all the benefits of cheap energy while paying almost none of the cost. While one individual or firm can do little on its own to correct the free-rider problem, the Chinese government is doing even less. ************************************ Finally, a Chance for the Ordinary Investor to GET RICH You don't have to be some stock market genius to clean up. I don't care if you've never bought a stock before. That’s the beauty of my CXS Money-Multiplier System. It tells you what to buy and sell. This makes it easy. Look at the mind-blowing profits these top small-cap stocks could have handed investors… Small-Cap investors could have made 2,894% on Metal Storm Ltd., 3,457% on Sirius Satellite Radio, and even 4,533% on AutoImmune Inc! My system can help you find winners like these so you can grow rich without worry! It’s all right here… ************************************ But, that will soon change. Some day in the near future, enough pressure both internationally and domestically, will force China to clean up its act. In fact, this is a subject you may already be familiar with. One of your editors, Greg “Gunner” Guenthner, wrote about this a few weeks ago. In his article, he mentions two companies that have already seen big gains. However, he’s always looking for ways to play this growing concern. We can expect plenty more where this came from… Until next time, Jamie Ellis P.S.: Gunner recently recommended another type of “cleaning” company to his exclusive Bulletin Board Elite readers a few weeks ago. This tiny over-the-counter company is on path to grow exactly like Blockbuster did in the mid-1980s. Blockbuster grew from nothing into a NYSE giant that has brings in over $5.5 billion a year. Through a similar acquisition plan, this tiny “cleaning” company is about to do the same, yet it still sells for under a buck a share… So to check it out, you can sign up right here… Editor’s Note: One last thing… We are trying to start something new here at Penny Sleuth. We are concerned that our relationship with you is too one-sided. So, we are reaching out to see what you have to say. If you have any thoughts about an editor, contributor, article, or anything else, please feel free to write us at pennysleuth@agorafinancial.com. (Be sure to put “For Jim” in the subject line, so we know it’ll get to me.) |