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Investing in the Mainstream Media in China Editor’s Note: Today, we have a Chinese investment opportunity that should really boost your portfolio. As more and more people pop up as investors in China, the demand for a proper financial media outlet grows. Today’s company has the answer… Enjoy… A Chinese Stock That Will Rock Your Socks
China’s new money goes well beyond the ultra-rich. The country is also home to a fast growing middle class that’s out there to consume. And that middle class is potentially more valuable to investors here in the U.S. than all of those billionaires put together. Since last April, China’s biggest 25 companies are up 33%, versus an S&P that’s seen an 11% decline over the same period. That’s saying something… There’s no question about it — Chinese stocks are hot right now, but some are definitely hotter than others. With a recession nipping at our heels here at home, is it even possible to find an undervalued, bubble-proof Chinese stock these days? A Chinese Growth Story Worth Looking At As hard to fill as that order may seem, at least one company is looking pretty salacious for the American investment dollar right now: Xinhua Finance Media Limited (XFML: NASDAQ). Xinhua Finance Media is — you guessed it — a media company that creates and broadcasts finance and entertainment content to millions of Chinese people. But here’s the kicker — the company targets high net worth individuals in China… We’re talking professionals who can give advertisers the most bang for their buck (or yuan, as the case may be). XFML is an interesting story because it takes middle class Chinese consumers on from all sides… They’re in print, TV broadcasts, online ads, and mobile devices that reach more than half a billion people. And management’s no slouch either. Their CEO was chosen as one of the Wall Street Journal’s Top 50 Women in 2004. *********************************** The 136-Year-Old “Millionaire’s Market” Moves Stockpiles of Money Each Day... Right Beneath Your Nose! But today, my “Guest Pass” gives you the chance to withdraw your share… Once inside, you’ll have a chance to legally “withdraw” $810 or more per week — and you’ll be able to deposit the money directly into your retirement account! Check it out now, and you can start as early as tomorrow morning at 7:10 A.M. *********************************** Even though the company has only been listed here in the U.S. for the past year, they’ve already posted some impressive numbers. They’ve got positive earnings, a double-digit profit margin, and some impressive net assets on the books. How impressive? More than $6 per share! What’s not to like? Well, one small blip on the radar is the fact that so much of their assets are made up of intangibles. Can their figures hold up to scrutiny in a bad market? Still, with a low P/E and a share price hovering around $3 and change, there’s a lot to like about this stock. Even a conservative analysis puts XFML above the $5 mark in the next couple years. Recession Proof? You Bet. Another thing that makes Xinhua Finance Media unique is the fact that they’re selling financial news, a service that gets even more eyes on it when the economy is in a slump. Institutional investors agree… California-based investment firm Yucaipa recently took a 12% stake XFML. “The investment will strengthen our financial position and enable us to better capitalize on the opportunities in China for growth and expansion,” Xinhua CEO Fredy Bush said in a press release. China’s already proving itself to be a workhorse market this year, and Xinhua Finance Media looks like one of the cheapest Chinese plays out there. We won’t be tracking it here, but if you’re looking to add an interesting penny play to your portfolio, this one might be worth taking a look at. Cheers, P.S.: Penny Sleuth contributors Greg Guenthner and Jim Nelson just found a company that should do even better in the Chinese market. It’s in the one industry that Wall Street hasn’t been able to touch. But when it becomes available to the suits in New York, you can bet that early investors will make a fortune. You can be among those lucky few. Just check this out… |
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