The China Story You Won’t Find Anywhere Else Editor’s Note: Everyone has heard of China’s amazing growth story. Today, Gunner tells us that there is still time to profit from it using the right industries. As always, send any questions or concerns to jim@pennysleuth.com. Enjoy… China Is Growing Up By Greg Guenthner April 3, 2008 Even during bear markets, it is rare to find a small, growing company trading at a hefty discount to its true value. When we’re screening penny stocks, a low P/E ratio usually sets off alarms. Why is this stock so cheap? We sometimes ask. Something must be terribly wrong…
That’s usually the case. The company’s P/E for the trailing 12 months might be propped up by an unusually strong quarter or a one-time payment. Or the company could have unexpectedly announced flat growth for the upcoming year. After all, who wants to pay a high multiple for zero growth? Not I… Every so often, there’s a break in this trend. A great company somehow slips through the cracks and not a soul realizes its value and potential. We believe we have found exactly this opportunity. In less than a year, this microcap could very well be sitting on a major exchange with a new booming business segment operating in one of the fastest growing nations in the world. More on this in a minute… First, we have to show you just how explosive this new retail growth can be… ***************8 Hours Left*************** Imagine you were one of only a handful of people given an opportunity to buy 100 shares of Microsoft six months before it went public on the NASDAQ — and for just $2.10 a share. . . Your 210 bucks invested would now be worth $1,640,000... This is the kind of investment I specialize in — the ones nobody knows about yet, but that everyone would buy if only they knew what outrageous profits were waiting for them. Sign up in the next eight hours, and you can join me on the quest to find the next Microsoft. ******************************************* A Designer Chicken in Every Pot? Decades ago, China’s goal was a chicken in every pot. Wealth was measured by how well you could feed your family from a small plot of land. That was then, as the saying goes. Today’s China is all about consumption. China’s rapid growth isn’t a well-kept investment secret. There’s money to be made in Asia, and investors are clamoring to get into this lucrative market. As China’s working and middle classes grow, so too does the country’s purchasing power. Naturally, retail sales have experienced a dramatic surge. Domestic retail sales skyrocketed 20.2% for the first two months of 2008, to more than 1.74 trillion yuan, or about $248.1 billion. That’s more than 5% higher than last year. While retail sales include food — which has been heavily affected by inflation — and wholesale goods, these aren’t the only statistics padding the numbers. Clothing sales are up 24%. Daily consumer goods are up more than 21%. Household appliance sales are up almost 19%. One of the true hallmarks of middle-class growth is the sale of these non-essential and luxury items. Even the poorest working members of a society will spend money on food staples. However, the working poor, especially in nations with less-developed economies, won’t be dropping big chunks of their paychecks at the Gap… Now that China’s economy is well into its adolescence, middle-class spending will continue to grow. We’ll be following this trend for quite some time… Best, Greg Guenthner P.S.: One small garment manufacturer is preparing to ride this “clothing boom” all the way to the bank. It isn’t even a blip on Wall Street’s radar. It’s cheap, growing and expanding in a predictable, simple industry. The company even has aspirations of landing on a major exchange (sooner, rather than later). Here’s what would happen if it does… P.P.S.: Because China’s growth is so strong, there are thousands of great investments that could turn a dime into a dollar overnight. My fellow Penny Stock Fortunes editor, Jim Nelson, just discovered one that could find itself at the top of 2008’s biggest gains list. He is still preparing the full report, but if you check this out, you will be part of the exclusive group to get in on it before it’s too late… |