Uncommon Wisdom : Stock

Capitalize on Chinese Consumers' Liquid Love Affair

Tony Sagami — Fri, 03 May 2013 16:19:00 GMT

Blame my parents. I was raised on a vegetable farm and don’t have much appreciation or need for the finer things in life.

I could afford a Mercedes but I prefer a pickup truck, I do most of my shopping at Wal-Mart (WMT) and Costco (COST), wear a $20 Timex watch, and I’ll take a bottle of cold Budweiser (BUD) over a bottle of $100 wine any day.

Heck, I think the last time I bought wine was some “Two-Buck Chuck” at Trader Joe’s.

While I may not have expensive taste in wine, a rapidly growing number of Chinese do.

China’s economic rise has created a new class of multimillionaires that filmmaker David Roche features in his movie “Red Obsession,” which chronicles China’s new love affair with wine.

Roche suggests that the entire output in the wine in the world may not be enough to satisfy the Chinese market in another 20 years.

“One expert we spoke with estimates that in 10 to 15 years, if you want to drink one of the world’s great wines, you would have to travel to China to do it.

“Wealthy Chinese are wanting to add wine to their stable of brand products. Along with their Rolexes and BMWs, they want a case of Chateau Lafite,” said Roche.

Fine wine serves as yet another
status symbol for newly wealthy Chinese.

The Chinese use expensive wines just like they do other luxury goods. They serve them to guests to demonstrate their success or give them as gifts to important business contacts.

But wine sales aren’t the only thing booming in China.

More Ways to Toast
Their Growing Success

China’s affluent and growing middle class is spending money like crazy. The Chinese Bureau of Statistics reported that China’s retail sales grew by 12.4% in the first quarter of this year to US$887 billion.

The reason retail sales are increasing by double-digits is that the Chinese economy is undergoing an intentional, MONUMENTAL transformation from an export-dependent manufacturer of low-margin trinkets to a consumption-driven economy powered by its own internal growth and wage growth.

China’s leaders don’t like being dependent on the West for its exports, so it is intentionally focusing on growing its internal domestic demand.

China’s 12th Five-Year Plan (2011-’15) prioritized more-equitable wealth distribution, increased domestic consumption, improved social infrastructure, and social safety nets. The plan is representative of China’s efforts to shift its emphasis toward domestic consumption.

They’re buying, all right. Here are some of the standouts …

Plenty of Room for Everyone
On China’s Store Shelves

Chinese companies and French winemakers aren’t the only ones cashing in on that spending boom. Lots of U.S. companies are doing landmark business in China, and making a big chunk of their overall sales there.

For example, Coach (COH) just reported that its first-quarter sales in China jumped by an astonishing 40% year-over-year.

Coach is a popular brand in China, and the company has positioned itself to keep cashing in on that popularity by opening 118 stores there. This year, it expects to pull in $425 million in sales.

Starbucks (SBUX) reported a 26% rise in first-quarter profits and raised its full-year earnings outlook thanks to a 22% increase in Asian revenues. Starbucks opened 516 stores over the last 12 months in Asia.

And Virtual Shelves Too …

It isn’t just the brick-and-mortar retailers that are doing big business in China. After all, the country covers about 3.7 million square miles. So, 516 Starbucks sounds like more of a growth opportunity than a saturated market!

For customers who don’t have physical stores that they can easily access, there’s always the Internet. Although the government is known to censor many sites, online shopping is a seemingly unstoppable activity.

In fact, the Internet Society of China reported that online retail sales jumped to $210 billion in 2012, a 64.7% increase from the previous year, and now comprises 6.3% of the entire Chinese retail economy.

The People’s Daily publication in China suggests that online buyers spend about $1,100 a year in first-tier cities (Beijing, Guangzhou, Shanghai and Shenzhen) alone, which represents just under 20% of their disposable income.

My Asian Century subscribers already have a profitable position in one of these names, with about 29% in open gains tracked so far. And there are plenty more profit opportunities coming down the pipeline from companies that make a fortune selling their products and services to Asian consumers.

Now, I am not suggesting that you rush out and buy Coach or Starbucks or any other stocks with significant China exposure tomorrow morning.

After all, as we discussed in yesterday's issue, plenty of companies that are doing well in the U.S. don’t always have a successful China strategy. (Find out why here.)

There is, however, no question that there is a mountain of money to be made by investing in companies that are successfully selling to China’s 1.3 billion consumers.

And no matter how rich and famous I become, I will still be the son of a dirt farmer and a man of simple tastes/needs.

But I sure like banking big returns in stocks that appreciate quickly (and regularly) thanks to smartly incorporating China’s growing consumer demand into their sales strategy … and having those profits in the bank just in case I want to celebrate my next winning trade with a good bottle of champagne!

Best wishes,

Tony

P.S. To get all the names of my favorite stocks — what’s working today AND what to buy as newly wealthy Chinese continue to fill their cabinets, kitchens and their lives with more and better-quality items — get on board with all the profit opportunities my service The Asian Century offers today. Click here to get started right away!

Can Your Stocks Compete in the Global Market?

Tony Sagami — Thu, 02 May 2013 16:05:00 GMT

How much time do you spend keeping up on the business news coming out of China? If you’re like most American investors, the answer is probably zero.

That is a big mistake, because China has a big impact on a very large number of U.S. companies in two critical ways:

China accounts for a significant amount of its revenues, and ...

Low-cost Chinese competitors are doing their best to steal their sales.

What’s this mean to you as an investor? It means that you need to review every stock in your portfolio — yes, even American companies — for their China strategy.

And if they don’t have a solid one ...

... then it might be time to rethink their place in your trading account!

Can Your Stocks Compete
On the Global Stage?

The U.S. economy is still sick and isn’t going to get better anytime soon. Not with our runaway government spending and reckless deficits, anyway.

The days of looking for domestic growth to increase your domestic-stock returns are long gone. But overseas growth is breathing new life into a surprising number of U.S. stocks — and ensuring that many of these companies don’t stumble if U.S. consumers stop buying.

In other words, American companies looking to grow their businesses had better figure out a way to sell their products in Asia, if they haven’t already. Not just in Asia, but specifically China.

Now, I say this with the caveat that just showing up in China is only half the battle for U.S.-based companies. That’s because plenty of big-name global brands have failed to find their footing there.

It’s not necessarily that the market wasn’t ready for them. Rather, it’s that the companies just weren’t ready to adapt their products, services and/or strategies to the market they wanted to serve.

For their part, many Chinese consumers do want to take advantage of all the latest global trends and be up-to-date on fashion, makeup, technology, food and other things Westerners crave.

However, American companies need to keep looking over their shoulders to make sure Chinese companies aren’t going to steal their business with lower production costs (read: cheap labor) and lower prices.

Plus, every market has a personality and a culture of its own. If a company isn’t doing its level best to understand and adapt to the consumer they want to attract — and to continue doing so even when conditions become challenging — it can ring the death knell for even the most-loved brands.

For example, two U.S. companies just reported their first-quarter profits, and those results were greatly impacted by what happened in China.

YUM! Brands

YUM! Brands (YUM) gets more than 50% of its revenues from outside the U.S., and it is very much betting its future on China, the world’s second-largest economy.

YUM! Brands operates more than 4,200 KFC restaurants and 800 Pizza Huts in China. Plus, it plans on opening 700 new China restaurants this year.

In 2012, 42% of YUM! Brands’ profits came from China alone.

Kentucky Fried Chicken,
China-Style

When you travel the back roads of China like I do, lunchtime can turn into a game of gastronomic Russian roulette.

I've been offered grilled scorpions on a stick, dog hot pot, monkey brains and lots of other things I couldn't begin to identify.

Fortunately, the conspicuous red "KFC" and Colonel Sanders logo can easily be found on the facades of shopping centers and office buildings.

When approaching such buildings, it is often easy to notice that both floors of the restaurant are packed with customers. Of all the KFCs I've visited in China, no matter what time of day or night, business was overflowing.

The accessibility of the KFC restaurants is unmatched by any other fast-food chain in China. In nearly every place where there's a crowd, there's a KFC. They can be spotted just off of highways, in shopping areas, and prime tourist locations.

YUM! Brands has done an excellent job tailoring this American chain to the Chinese market. The menu is different from the United States, featuring smaller-sized meals and new entrees with desserts and ingredients well-liked by the locals.

Better yet, according to Peking University marketing professor Jianfeng Wu, the Chinese consider KFC to be somewhat of an upscale restaurant (in contrast to the "fast food" label it has in America).

The menus for Pizza Hut are substantially different from that of the States, featuring bizarre ingredients such as seafood and corn (yes, corn!). The atmosphere inside is more-elegant, as if it were an expensive steakhouse.

The good news is that the Chinese seem to like it, as each Pizza Hut I've seen was almost as busy as the adjacent KFC.

Until recently, that emphasis on China has paid off big-time. However, it just reported that same-store sales in China fell by 20% in the first quarter.

The company has had problems with a poultry supplier that failed to meet food safety standards as well as fears about chicken over a new strain of bird flu.

Shares are trading around $67.50, not too much changed since the beginning of the year but with a lot of peaks and valleys in between.

RBC Capital recently upped its target for the stock to $75 as the company’s CEO has said the company intends to make a China comeback by 2014.

Apple

It wasn’t that long ago that Apple (AAPL) was the biggest company in the world, as measured by market capitalization. However, Apple’s stock has fallen from $700 to $400 over the last year as its rate of growth slows.

A big part of that slowdown is because of China.

In the first quarter of 2013, China sales dropped off sharply. Sales rose 11% to $8.8 billion, a gigantic drop from the 67% revenue growth that Apple enjoyed in the fourth quarter of 2012.

The problem isn’t that the Chinese economy is struggling. After all, iPad sales grew 138% in China in the past quarter.

The problem is that competitors — Asian electronic giants Samsung (SSNLF on the Over the Counter market) and Lenovo (LNVGY on the Over the Counter market) — are eating away at Apple’s dominance.

Apple has been a tremendous success story, but those Asian competitors are beating Apple at its own game.

In the fourth quarter of 2012, Apple ranked sixth in the China market with a 7.9% market share, while Samsung took first with a 15.4% share and Lenovo second with 13.1% according to IDC.

Beijing-based Lenovo grabbed a 13%
market share over Apple's 8% share in China in Q4.

The overall result was that quarterly revenues dropped by 26% to $337 million, a sharp decrease from the $458 million in the first quarter of last year, and a 41% drop in profits.

Apple says it plans to double the number of retail outlets it has in China, currently at 11, during the next two years. CEO Tim Cook calls it “a great market.”

There are plenty of rumors swirling about a cheaper iPhone 6 coming to market that could see big success in emerging markets including China.

In the meantime, we’ll see whether Apple or even YUM! Brands can bite back at the big challenges they face in this important market.

2 Rules for Making Stock Market
Profits in the Next Decade

Here are the two most important investment rules for making stock market profits in the next decade:

1. Get “long” whatever the Chinese are buying, and

2. Get the heck out of any U.S. company that is fighting what will be a losing battle against cheap Chinese competition.

What are the Chinese buying? Oil, copper, natural gas, coal, gold, steel, cement, English lessons, hotel rooms, pollution-control equipment, homes, designer clothes, gambling junkets, solar power panels, and cell phones to name a few.

And if you own stock in a company that is facing meaningful low-cost Asian competition ... the odds are good that they will get their financial butts kicked.

Just ask anybody who used to work in the steel, textile, furniture, or consumer electronics industry.

Best wishes,

Tony

P.S. Speaking of the best way to play the global commodities boom, my friend Sean Brodrick told me that he's planning to send a brand-new gold recommendation to his subscribers TODAY.

Plus, his new video about gold is coming offline tonight at 11:59 p.m. Eastern. Don't miss out — click here NOW to make sure you get all this urgent information before it's too late!

2 Stocks That Can Benefit from the New Bird Flu Outbreak

Tony Sagami — Fri, 12 Apr 2013 15:50:00 GMT

Remember when millions of Chinese donned face masks for protection during the Asian SARS (Severe Acute Respiratory Syndrome) epidemic back in 2003?

Now, a second, deadlier version of bird flu has just hit China. Health officials all over the world are monitoring an epidemic that could be even worse than 2003.

But some companies are already cashing in on a potential treatment. I’ll tell you about a few of those in just a moment.

How big is the problem so far? As of yesterday, a total of 21 people in eastern coastal cities — six in Shanghai, four in Jiangsu, three in Zhejiang and one in Anhui — have been confirmed with H7N9, a new, different strain of bird flu.

Six of the 21 infected have died as result of their H7N9 infection.

The country is taking aggressive action. Health officials have banned sales of live poultry in Nanjing, Zhejiang and Shanghai. They’ve also destroyed some 20,000 birds in Shanghai.

The same is expected in more cities. But things could get much worse.

That’s because there are two key differences that could make this outbreak even more serious than the previous epidemic.

One of the reasons SARS was so difficult to control was that Chinese health officials destroyed hundreds of thousands of chickens.

However, I remember watching Chinese villagers grabbing their chickens and hiding them any time they saw anyone they suspected could be a health official.

Infected or not, those Chinese chicken owners were not about to let their chickens, infected or not, be confiscated by government officials.

But this time, infected chickens are only part of the problem.

Difference #1: The new outbreak is the first time the virus has been found in humans. Plus, H7N9 is being spread by pigeons as well as chickens.

While you won’t find pigeon on American menus, it is a popular meat in China. You can even buy them at produce markets.

Moreover, pigeons are much more mobile than chickens. So the potential for H7N9 flu to rapidly spread and potentially affect millions more people is frightening.

Difference #2: Previous bird flu outbreaks resulted in thousands of chickens dying before any infections occurred in humans.

“We don’t know yet where the humans got their virus from,” said Joseph Bresee, M.D., who heads the epidemiology and prevention branch of the U.S. Centers for Disease Control and Prevention’s influenza division.

To date, some 600-plus people who had come into contact with the infected are being monitored. None have shown signs of contracting the virus so far.

“This time we’ve seen that many species of poultry actually have no apparent problems, so that makes it difficult because you lose this natural warning sign,” said David Hui, an infectious-diseases expert at the University of Hong Kong.
You can click this link to watch a short, free CNN news report of the bird flu outbreak.

How serious is this outbreak? Ray Yip, M.D., the head of the Bill & Melinda Gates Foundation in China, warned:

“A lot of people get severe respiratory conditions, pneumonias, so you usually don’t test them. Now all of a sudden you get this new reported strain of flu and so people are going to submit more samples to test, [so] you’re more likely to see more cases.”

At this time, there is no way to tell how much more serious this outbreak of bird flu becomes. But I believe the reaction will be significant and widespread.

‘An Epidemic Zone’

Some Chinese are already in a panic. A fresh post on Weibo, China’s version of Twitter that has more than 500 million users, said, “Suddenly I discover that I’m living in an epidemic zone!”

One Shanghai restaurant is going to stop serving chicken. “After we sell out the chicken in stock, we will not buy new chicken and will stop serving chicken dishes for the time being,” a waitress told Reuters, declining to be identified.

It is a sad reality but some companies — airlines, hotels and restaurants —are going to financially suffer while others will make a fortune from treating this new strain of bird flu.

Here are some stocks that could be big winners, which have shot up in just the past week.

Winner #1: The Chinese FDA has given fast-track status to an anti-influenza drug called Peramivir from BioCryst Pharmaceuticals (BCRX).

Winner #2: Those fortunate enough to be diagnosed early can be effectively treated with Tamiflu, which is made by Roche Holding A.G. (RHHBY).

Winner #3: There is a third option and one that has even more potential. A little-known Chinese vaccine company that has technology, expertise and the favor of the Chinese government.

I recommended that my Asian Century subscribers pick up some call options on this stock for peanuts last Friday. Those could rise 100%, 200%, 300% or even more if the disease continues to spread.

Of course, there is no such thing as guarantees in the investment business, but I believe that the risk/reward trade-off is extremely attractive.

To learn more about this exciting opportunity, subscribe to my service. I think you will be very happy with the results.

Best wishes,

Tony

January Indicator Reveals: Great Year for GLOBAL Stocks!

Tony Sagami — Fri, 08 Feb 2013 21:37:00 GMT

As goes January ... so goes the rest of the year.

February got off to a rough start, with markets taking a tumble yesterday on revamped concerns about the sovereign-debt crisis in the euro zone. But last month's action is what smart investors should be focusing on right now.

In other words, what this past January showed us should weigh more heavily on the investment decisions we make throughout the rest of the year than a single day’s performance in February.

The mainstream media gave lots of attention to the Dow Jones punching through the psychological 14,000 barrier last week. Indeed, the stock market has been on a roll so far this year, up 5.04% in just the month of January.

That strong January performance has revitalized interest in the January Indicator.

The premise behind the January Indicator is that a positive January is the precursor of even-higher stock prices for the rest of the year.

There is some strong historical data that supports this theory. The S&P 500 index has been tracked since 1950. Since then, there have been 39 “up” Januaries and 24 “down” Januaries.

Out of those 39 positive Januaries, the S&P 500 went even higher for the rest of the year 34 times, which is an impressive 87% success rate. That’s one of the strongest correlations you can find.

The downside correlation isn’t nearly as strong.

Of the 24 “down” Januaries, the S&P 500 continued to fall 11 times or only 45% of the time. Clearly, the January Indicator isn’t as useful when January is a down month.

So Goes a Profitable January for U.S. Stocks …

Of course, nothing is guaranteed in the investment world, but a profitable January has been a pretty darn accurate predictor for the rest of the year and strongly suggests that the rest of the year is going to be even better.

If you’ve been sitting on the sidelines or burdened with a cash-heavy portfolio, I suggest you consider increasing your stock market allocation on this or the next dip.

… So Goes the Rest of the Year in Global Markets

That doesn’t mean you are required to invest in the U.S. stock market. I say that because historical evidence from all around the world suggests that the January Indicator works just as well for foreign markets.

Yup, I am talking about Asia, which is the largest continent in the world both in terms of size and population, and home to many of the fastest-growing economies in the world.

2013 should be a strong year for Asian economies. RBS recently wrote this about Asia:

“The U.S. and Europe will remain weak, that’s for sure. We expect 2% growth in the former and further mild contraction in the latter in 2013. But the past four years have shown that Asia doesn’t need strong growth from the G-3 to grow strongly itself. All it needs is the absence of collapse.”

And Asian stock markets are enjoying similar or even better performance than the S&P 500.

For example, the Hong Kong Hang Seng was up 4.7% and the Shanghai Composite Index gained 5.1% in January.

The top Asian market was Japan, where the Nikkei 225 Index had its best January in 15 years and jumped by an impressive 7.2%.

NOTE: If you didn’t read my column last week, I think you’ll find it very informative about why the Japanese stock market is so hot.

As you might expect, Asia-focused ETFs have delivered excellent returns so far this year. For example, the Market Vectors Vietnam ETF (VNM) was up 24.3% in January.

In fact, the only Asian stock market that didn’t go up in January was the South Korean KOSPI, which lost 1.8% for the month.

In short, prosperity was busting out all over Asia, which is why the Vanguard MSCI Pacific ETF (VPL) is trading at its highest level in 17 months.

The Vanguard MSCI Pacific ETF, which is designed to mirror the performance of the MSCI Asia Pacific Index, is up by 10% over the last three months.

The Vanguard Asia Pacific Index is allocated as follows: 58% to Japan, 26% to Australia at 26.2%, 9% in Hong Kong at 9.2%, and Singapore at 5.5%.

If you want to focus on specific countries, there are ETFs for every major Asian countries. For instance:

iShares FTSI China 25 (FXI)

iShares MSCI Japan (EWJ)

iShares MSCI Hong Kong (EWH)

iShares MSCI Taiwan (EWT)

iShares MSCI Korea (EWY)

iShares MSCI Singapore (EWS)

Market Vectors Indonesia (IDX)

iShares MSCI Malaysia (EWM)

iShares MSCI Thailand (THD)

Market Vectors Vietnam (VNM)

iShares MSCI Philippines (EPHE)

The only exceptions are the very emerging economies of Myanmar, Cambodia, and Laos.

The rewards are very high if you pick the right country: The iShares MSCI Philippines was up a whopping 48% in 2012.

You can also invest in Asian currencies: Market Vectors Chinese Renminbi/USD ETN (CNY), iPath JPY/USD Exchange Rate ETN (JYN), and the WisdomTree Asia Local Debt Fund (ALD).

And you can even target specific Asian sectors too such as Guggenheim China Technology (CQQQ), SPDR Russell/Nomura Small Cap Japan (JSC) and iShares MSCI Far East Financials Index (FEFN).

If the January Indicator is right — and it has been 87% of the time — the stock market is headed higher for the rest of the year. However, don’t restrict yourself to just the U.S. stock market because Asia is growing at up to 500% faster pace.

Let me put it this way:

Would you rather invest in a country whose economy contracted by 0.1% in the fourth quarter of 2012, or in a region that is growing by 5%, 6%, 7% or even more?

For my money, I’ll take the Porsche (Asia) over the Volkswagen (the U.S.), and so should you.

Best wishes,

Tony

P.S. My friend and fellow global-focused investor Rudy Martin is revealing the 4 global mega-trends that will drive gold, stocks and other commodities through the roof. It all happens this coming Thursday, February 7 at noon Eastern. Registration closes Wednesday night at 11:59 p.m., so don't miss out. Click here now and we’ll make sure you get complete instructions on how to attend!

Big Rise in Stock-Buying, But What's Selling May Surprise You!

Tony Sagami — Fri, 18 Jan 2013 17:07:00 GMT

Investors are pouring a mountain of money into the stock market this year.

After our dysfunctional politicians in Washington, D.C., forged a Fiscal Cliff agreement that both sides seem to hate, the stock market shot up and has been on a roll ever since.

If you’ve bought a bunch of new stocks, funds or ETFs in the last few weeks, not only have you witnessed some nice gains, but you’ve also been part of a near-historical run.

If you haven’t yet gotten in on all the action, there looks to be plenty more in store. But it’s probably not happening where you think it might be ...

Where is All This Money Going?

A fresh study from Bank of America/Merrill Lynch shows that retail investors are responsible for some big market moves here in 2013. Inflows into stock funds last week were the second-largest EVER.

A total of $22.2 billion was plowed into equity funds in the second week of January. In the entire history of the stock market, the only week with bigger inflows was in March 2000!

Those numbers are impressive but, as always, the devil is in the details. One detail that I want to bring to your attention is that, out of this $22.2 billion, an impressive $7.4 billion went into emerging-market funds.

In fact, the fund flows into emerging-market funds were the largest of ALL TIME!

Follow the Money ...
Out of the Country!

If investors are bullish on the stock market, they are REALLY bullish on Asia and Latin America.

Our government leaders aren’t the only ones doing their best to goose their struggling economy. There are two big changes in government policy that I believe are going to send overseas markets–China and Japan specifically–to new heights.

Here’s why you should be paying close attention to these powerful trends ...

Destination No. 1: China—
Show Me the Money!

China is a Communist country, and it doesn’t play fair. Only large, pre-approved institutional investors are allowed to buy China-listed stocks–its government prohibits foreign investors from buying them.

The Chinese stock market, however, has been struggling. So, it has decided to throw open its stock-market doors for foreign institutional investors.

In 2012, the Chinese State Administration of Foreign Exchange awarded nearly $16 billion of quotas, called Qualified Foreign Institutional Investors (QFII), to big foreign investors. To put that $16 billion in perspective, this one-year amount is equal to all the money put together from 2006 through 2011.

That fresh money is the gasoline behind the new, speedy Chinese stock market rally.

Although there are no foreseeable plans for retail investors to be able to get in on the action, there are plenty of ETFs that let individuals play the Chinese market. The iShares FTSE China 25 Index Fund (FXI), SPDR S&P China (GXC) and iShares MSCI China (MCHI) are just a few ways to play China, and you could also consider other avenues like Taiwan and Hong Kong to piggyback off this trend.

If you already have some China exposure, or if you’re looking to expand your global investing reach in a slightly different direction, Japan offers an intriguing opportunity here in the early part of 2013. Here’s why ...

Destination No. 2: Japan—
New Politicians, Promises Means More Spending!

Our politicians aren’t the only ones who know how to spend money they don’t have.

Japan just recently held its elections, and the Liberal Democrat Party won in a landslide. Now Shinzo Abe, the prime minister from 2006 to 2007, is back in charge.

Abe has introduced a new $117 billion stimulus package that is designed to grow Japan’s GDP by 2% and create 600,000 new jobs.

Even more amazing is Abe’s intention to force the Bank of Japan, Japan’s central bank, to embark on a quantitative-easing program that would make Ben Bernanke blush.

Abe wants the Bank of Japan to buy, in unlimited quantities, whatever new debt the politicians create from increased deficit spending. The objective is to create money in quantities sufficient enough to pull Japan out of its deflationary spiral and push the yen lower.

In effect, Abe wants to strip the Bank of Japan of its independence and force it to become the printing machine for UNLIMITED government spending.

That may sound nuts on the surface. But the result is that the Japanese yen is falling ... and that is VERY good news for an export-dependent country like Japan.

A recent article in the main Japanese newspaper, The Nikkei, reported that a one-yen change in the dollar/yen rate would translate into a $2.7 BILLION increase in profits for the 30 largest Japanese exporters.

Suddenly, Japanese stocks, exporters in particular, are looking extremely attractive. And the Japanese market now looks attractive to a lot of investors.

Subscribers to my Asian Century investment service are already on the Japanese bandwagon with two big-potential plays on a falling yen. (Find out how to get immediate access to these trades—click here right away!)

While I can’t share those opportunities here, I can assure you that it is easy as pie to add some Japanese exposure to your portfolio when you’re ready.

There are more than a dozen Japanese stocks—such as camera-maker Canon (CAJ), farm equipment and machinery maker Kubota (KUB), car-maker Toyota (TM) and electronics-maker Sony (SNE)—traded on the New York Stock Exchange and Nasdaq.

If you’re more of an ETF investor, you have plenty to choose from, including ...

iShares MSCI Japan Index Fund (EWJ)

iShares S&P/TOPIX 150 (ITF)

MAXIS Nikkei 225 Index ETF (NKY)

SPDR Russell/Nomura Small-Cap Japan (JSC)

SPDR Russell/Nomura PRIME Japan ETF (JPP)

WisdomTree Japan High-Yielding Equity (DNL)

WisdomTree Japan Small-Cap Dividend (DFJ)

And if you are really bullish on Japan, there is a leveraged ETF that can give you DOUBLE the return of the Japanese stock market: ProShares Ultra MSCI Japan (EZJ).

I am not suggesting that you pour new money into the Japanese stock market. As always, timing is everything.

Instead, I recommend that you wait for another buy signal from my Asian Century service. And if you aren’t yet signed up to receive my up-to-the-minute buy-and-sell alerts, click here now to find out how easy it is to get started!

Best wishes,

Tony

The Issue That Could Decide the 2012 Election

Tony Sagami — Fri, 02 Nov 2012 18:07:00 GMT

The presidential debates were supposed to provide clarity and direction for undecided voters. But the mainstream media tells us that the outcome is cloudier than ever.

From my vantage point, a Mitt Romney victory looks almost assured. And if you look at some research done by a pair of political-science professors from the University of Colorado, you’ll see why I expect a change in administration for the next four years.

In just a moment, we’ll look at one of the biggest opportunities a Romney win could open up for both investors and job seekers. I’ll also share with you how to get access to my specific stock picks in this and other sectors that stand to benefit from a possible change in our country’s leadership.

But first, let’s look at ...

The Issue That Could Decide the 2012 Election

Ken Bickers and Michael Berry have developed an intriguing and historically accurate forecasting model that has successfully predicted the winner of every presidential election since 1980.

The root of their methodology is that Americans vote based on their pocketbook. And these decisions are rooted in the economics of each individual state, such as state unemployment rates and real per-capita income.

In other words, like James Carville said, “It’s the economy, stupid.”

And the economy could be the issue that will decide the election.

Could We Really Be Better Off Under Romney?

According to these two political-science experts, Romney will receive 330 of the total 538 Electoral College votes and President Barack Obama will capture 208 votes.

This model isn’t perfect. It has a historical error rate of five states and 28 Electoral College votes per presidential election. But it is the most-accurate forecasting measure I’ve seen.

Assuming that Bickers, Berry and I are right, there are going to be some immediate and profound changes to our economy and the way you should invest your money.

In the previous weeks, I’ve focused on tax and regulatory issues that could be beneficial for investors under the Romney plan. But this week, I want to focus on how the energy landscape will change and how it is going to make some of you very, very rich.

The price of gasoline has more than doubled since President Obama took office. One reason is that the Obama administration appears to have made it difficult and expensive to pull oil out of the ground or ocean.

Offshore permits dropped by an industry-killing 68%. This was after issuing ZERO offshore drilling permits since the BP disaster.

According to the Bureau of Land Management, approximately 3,500 leases were issued in 2007 for energy development on federal property. That number was 37% lower in fiscal year 2011, when only about 2,200 leases were issued for the same purpose.

Romney vowed to encourage more drilling by streamlining and improving the permitting process, opening up new areas and boosting overall drilling activity.

He said he will do that by giving states more power to regulate exploration and production on their own border and on federal lands inside their borders.

Romney also said he will limit the power of the Environmental Protection Agency to restrict production and look for a big push to open up access to previously prohibited areas.

Gasoline Prices Soar,
Nat-Gas Prices Plummet

Gasoline prices have soared, but the price of natural gas has plunged from a peak of $13.58 per million British Thermal Units in July 2008 to less than $4 today.

The reason for the dramatic price drop is that improvement in hydraulic fracturing (“fracking”) and horizontal drilling technologies are powering a new energy revolution.

Natural gas production is at 6.5 million barrels per day, a 15-year high. And the Department of Energy forecasts that, next year, U.S. crude and natural gas production will average 11.4 million barrels per day.

Looking forward, Citibank forecasts U.S. production will reach 13 million to 15 million barrels per day by 2020.

To put those numbers in perspective, Saudi Arabia produces around 11.6 million barrels.

As a result, we’ve slashed our dependence upon foreign oil from a whopping 60% in 2005 to 49% today.

In fact, if the politicians and environmental crowd don’t get in the way, the U.S. will be able to tap into our vast natural gas and oil reserves. This could lead to energy independence, for a long time to come.

According to the U.S. Geological Survey, we have 1.8 trillion barrels of shale oil/gas, which is enough natural gas to serve all the energy needs of the United States for at least the next 100 years.>

Free-Market, Not Government, Stimulus

The unemployment rate, while improving, is still horrible. Twelve million Americans are out of work and another 9 million are under-employed.

The boost in oil and natural gas production on private lands is largely responsible for boosting U.S. oil production by 25% since 2008 and has created 1.7 million new jobs as a result.

Those new jobs, according to Energy Research firm IHS, would pay an average of $35 an hour.

Those are the kinds of jobs our country needs — not the minimum-wage service jobs Obama has been creating.

But wait, it gets even better. IHS also forecasts the energy industry will create a total of 2.5 million new jobs by 2015.

And this will make a big dent on state and federal deficits. I’ve seen forecasts for this new energy revolution to add $62 billion to federal and state revenues in this year alone.

China Has Cheap Labor
U.S. Will Have Cheap Energy

It is hard to quantify the impact that lower natural gas prices and abundant supplies will have on economy. But it is clear that cheap energy will have a huge impact.

That’s because a lot of companies that have previously left the U.S. are coming back because of our cheap energy.

Cheap natural gas prices are now making the U.S. into one of the most-profitable places in the world to make chemicals and fertilizer — two industries that use lots of natural gas.

Additionally, energy-intensive industries like aluminum, steel and glass are enjoying a dramatic drop in production costs.

Natural gas is so cheap that some of my Asian business contacts are now complaining that the U.S. is using cheap energy prices to steal their jobs.

Imagine that. We’ve been complaining for years about cheap Chinese labor. But cheap natural gas prices may offset that wage advantage and rejuvenate our economy.

A Romney presidency could create millions of high-paying energy jobs and lower energy prices for all of us.

As investors, the opportunities are huge. And on Nov. 7, you can be among the first to gain instant access to a dozen stocks tailored specifically to the election’s outcome ... a dozen potential presidential profit-doublers, that is!

That’s because I’ve compiled a short list of companies, including my top two energy picks, whose profits (and stock prices) can potentially skyrocket under a Romney presidency. I call them my 12 Romney Windfall Stocks.

Now, if Obama makes his case to the American public to keep his job, you’re covered that way, too. That’s because my colleague Sean Brodrick has 13 Obama Profit Bonanzas ready and waiting for you for a potential second Obama term.

No matter who wins, you will know exactly where to invest your wealth based on who’s in the White House for the next four years

Don’t wait till the elections are over — make November 7 a new beginning for your wealth when you reserve your “Election Day Survival and Prosperity Guide” today!

Best wishes,

Tony

Will Investors Oust Obama? 4 Predictions for a Romney Victory

Tony Sagami — Fri, 12 Oct 2012 17:07:00 GMT

Will the incumbent or the challenger take the nation’s top title just 28 days from today?

Whatever the outcome, you have access to a number of ways to guard and, more importantly, enhance your prosperity. Today I’d like to start exploring what we might be able to expect with one of those outcomes by sharing four predictions for the stock market, the fiscal cliff crisis, taxes and the national debt.

Best wishes,

Tony

P.S. On Nov. 7, you can know EXACTLY where to invest your wealth based on who occupies the White House for the next four years. That’s the day we’ll be delivering our brand-new “Election Day Survival and Prosperity Guide” — tailored specifically to the election’s outcome.

This post-election profit guide is filled with a presidential-focused batch of potential money-doublers designed for either a Romney or an Obama win. You don’t need to wait till the elections are over — you’ll be covered either way when you reserve your copy today!

A Unique Way to Profit from Asia's Happy, Confident Spenders

Tony Sagami — Fri, 21 Sep 2012 16:06:11 GMT

You may think of New York City-based Citigroup (C) as an American company. But I’ve traveled the world extensively, and I can say that I have yet to set foot in a country that does NOT have a Citibank branch.

Citi truly is a worldwide enterprise, with 200 million customers in 160 countries. This global presence allows the company to collect a mountain of data on consumers, which it shares each year in its “Wealth Report: A Global Perspective on Property and Wealth.”

It contains what I think is perhaps the single-most-important piece of investment information available. The 2012 edition is free and a little long at 68 pages, but it is full of information that can help you become a better-informed investor.

If you can’t read the whole thing, or read it right away, I’ll share with you the most-important part right now. And that is Citibank’s forecast of which countries will become the richest in the world by 2050, as measured by per-capita GDP.

Did the United States make the top five? Yes, but barely. However, take a look at the countries that are set to leapfrog ahead of it, and think about where they’re located:

1. Singapore: $137,710

2. Hong Kong: $116,639

3. Taiwan: $114,093

4. South Korea: $107,752

5. United States: $100,802

This is an early warning signal for investors.

The United States’ expected slide to the No. 5 isn’t terrible, but it does send a very clear message.

A big reason why the United States remains in this elite group is because of forward-thinking businesses that are selling their wares to consumers in those top four countries!

As an investor, it would be a huge mistake to not include a significant weighting of the top four countries in your portfolio right now, as those countries work their way up to the top of the global economic food chain.

It’s not just the countries that are worth your attention. It’s the people who will propel these countries to the top GDP-per-capita spots: The consumers.

Why Asian Consumers Will Dictate
Companies’, Countries’ Successes

Asia should no longer be considered just a manufacturing center for cheap, low-margin trinkets. That’s because many Asian countries are undergoing an intentional, MONUMENTAL shift to consumption-driven economies that are powered by their own internal growth.

The four Asian juggernauts that topped Citi’s global wealth report — Singapore, Hong Kong, Taiwan and South Korea — are already growing at a remarkable pace, following in the footsteps of China and its massive consumption machine.

And you can bet that the stocks of companies successfully selling to their up-and-coming consumer classes throughout Asia are going to make a mountain of money. You must invest in countries where the consumers are happy, confident and spending.

In China, for example, wages have been growing by around 12% a year in real terms over the last decade. And in spite of China’s economic growth slowing to a three-year low near 7.6%, retail sales are still growing like gangbusters, with a 13.1% year-over-year growth in retail sales.

Investing in the companies that sell to those Chinese consumers is likely to be an extremely profitable strategy. Some of the biggest beneficiaries will be Chinese retail brands ... many of which can be found on the U.S. stock exchanges.

How Best to Profit from Happy, Confident Spenders

Overall, Chinese stocks in general look ripe for some big gains. I say that because Chinese stocks are cheap. Really cheap. In fact, the average Chinese stock is now trading for less than nine times earnings and about 1.25 times book value.

There is, however, another lucrative path to the booming Asian consumer markets.

I’m talking about American companies that are doing big business in Asia because their products have been embraced by Asian consumers, such as Apple (AAPL) iPhones and Nike (NKE) tennis shoes.

Of course, only a select few American companies have established a strong foothold in Asia. And those companies are bound to soar as Asian incomes continue to rise and the Asian spending spree fully kicks into high gear.

I know exactly who those companies are and to show you how to spot them, I have a brand-new FREE report for you ...

In this report, I’ll reveal how you can spot profit opportunities like these without my help and without paying me or anybody else a red cent! And I’ll introduce you to the five U.S. stocks I’m counting on to spin off huge, double-your-money gains for the rest of this year and beyond ...

Click here now to read my special research report, “The Only Game in Town.”

After you’ve read it, you’ll be able to predict with astonishing accuracy whether any stock is destined to lead the Wall Street pack ... whether it will lag far behind the thundering herd ... or even fall by the wayside.

Best wishes,

Tony

P.S. The best investing opportunities designed to take full advantage of the incredible Asian consumer boom are hiding in plain sight. Just give me 30 seconds, and I can tell you if any stock you name is likely to double your money in the next year ... click here now so I can show you how!

4 Blockbuster Potential Takeover Targets

Tony Sagami — Fri, 14 Sep 2012 15:55:00 GMT

China’s largest movie theater operator just bought AMC Entertainment Holdings for $2.6 billion. But it still has M&A on the brain and plans to spend another $30 billion on acquisitions in the next couple years.

Today I’m looking at four publicly traded theater chains that could soon find themselves in the sights of this Chinese suitor. Watch the video for the details!

Best wishes,

Tony

P.S. Buying potential takeover targets is just one way to profit from the great — and growing — Asian consumption machine. With its consumers’ near-obsession with American products, it only makes sense that Asian companies will want their own piece of the investing action.

Gain access to all my favorite U.S.-based companies that are doing BIG business in China, Japan and other big-spending countries by taking my new trading service, The Asian Century, for a test-drive today!

P.P.S. IMF Managing Director Christine Lagarde recently told world leaders that America’s Fiscal Cliff is one of the deadliest risks now looming over the global economy. Waiting for our leaders to save you from this impending catastrophe could be extremely costly. It’s time to take your financial security into your own hands! We’ve just posted a NEW video online to help you protect your wealth and profit. Click this link to view it now!

U.S. Retailers Getting a Boost from Chinese Consumers

Tony Sagami — Fri, 03 Aug 2012 16:00:44 GMT

Wangfujing Street is the first modern-style commercial street in Beijing. This major retail hub, which attracts nearly 1 million people a day, is also a place where many U.S. companies are doing BIG business.

Today, I’ll take you on a stroll through Wangfujing Street so you can see where Chinese consumers are spending their money ... as they’re spending it!

Best wishes,

Tony

How to Profit from Asia's American Dream

Tony Sagami — Fri, 29 Jun 2012 16:26:08 GMT

Today, Asian-Americans are the best-educated, highest-income and fastest-growing group in the United States, according to a new report from the Pew Research Center.

Things have changed significantly for the better since 1957, when my mother and I journeyed to the United States from Japan. And the opportunities for Asians to advance their education and/or their incomes in America are leading to opportunities for you to make some smart investments to profit from this powerful trend.

Asia’s American Dream

Our long, two-month trip on a slow naval transport ship must have been frightening to my then-20-year old mother. But she was eager to start a new life in America ... a place where anybody who studied hard and worked hard could be successful.

“In America, anybody can get rich if they work hard,” she told me.

Those lectures and demands for academic excellence from my mother paid off for me, my siblings and my children.

My brother is a high-level executive at Nordstrom, my sister is a skilled physical therapist, and my children have always done well in school. My oldest son Ryan will soon begin his Ph.D. studies, and my daughter Keiko was a perfect 4.0 student and the valedictorian of her class.

I am sad to say that my mother died 11 years ago from cancer, but her dreams have become a reality for Asian-American families all over the United States.

A new study from the Pew Research Center, “The Rise of Asian Americans,” showed just how far Asian-Americans have come. And this was quite a surprise to me, but Pew Research reported that Asians are now immigrating into the U.S. in greater numbers than Latinos.

In 2000, roughly 1.2 million Latinos immigrated into the United States while only 400,000 Asians moved here. This figure has changed to approximately 400,000 for both groups, but Asian arrivals have held a slight lead since then.

Last year, Asian-Americans accounted for 36% of all immigrants while Hispanics accounted for 31%.

Pew concludes that shift in immigration leadership was a combination of declining illegal immigration from Mexico because of beefier border control and a weak U.S. economy, while the demand for highly skilled workers from India, China and South Korea increased.

Overall, Asian-Americans still make up a fairly small percentage of our population. The 2011 Census numbers showed that 5.8% of the population is Asian while 16.7% is Hispanic.

By the way, the six largest Asian subgroups are Chinese, Filipinos, Indians, Vietnamese, Koreans and Japanese.

Asians’ Ascent in America

These immigrants all have one thing in common: They are looking for a better life.

When my grandfather, Fusakichi Sagami, arrived in the U.S. more than a hundred years ago, he and other Asian-American immigrants were uneducated and limited to what Pew Research called “low-skilled, low-wage” jobs.

My grandfather worked in kitchens as a dishwasher and then as a cook until he saved enough money to buy a small vegetable farm in western Washington.

The hard work of those early immigrants has paid off.

“A century ago, most Asian-Americans were low-skilled, low-wage laborers crowded into ethnic enclaves and targets of official discrimination,” says Pew.

These days, the median annual household income of Asian-Americans was reported at $66,000, with Indian-Americans accounting for $88,000, compared with a U.S. national average of $49,800.

The educational credentials of the new immigrants are impressive. 61% of the immigrants from Asia ages 25 to 64 have at least a bachelor’s degree, making them the most highly educated group of immigrants in U.S. history.

That is double the percentage of non-Asian immigrants.

Asian immigrants receive more than 75% of H-1B visas, which are offered to highly skilled workers in specialized fields such as technology.

Finding Education in America

Asians are not only coming to the U.S. to work but also to attend college. Today, the majority of international students enrolled at U.S. colleges are from Asian countries.

Those Asian students are focusing on science degrees. Among all doctorate-holders who live in America, a majority in computer science (57%), electrical engineering (57%), civil engineering (54%) and mechanical engineering (52%) come from abroad.

Now, those Asian students don’t just show up in the U.S. and enroll in Harvard or Stanford. Every foreign student needs to prove his or her proficiency in English by passing the TOEFL (Test of English as a Foreign Language).

There are several ways to profit — and handsomely, at that — from helping those Asians obsessed with education. There are TEN Chinese education stocks listed on the U.S. exchanges. Yup ... TEN stocks.

ATA Inc. (ATAI) provides computer-based training courses to help pass professional certification exams such as banking, insurance and accounting.
Ambow Education Holding (AMBO) has a unique combination of hands-on personal tutoring supplemented with online training.
ChinaEdu Corp. (CEDU) is the Chinese equivalent of the University of Phoenix, offering online college degrees.
China Distance Education Holdings (DL) offers online education and test preparation courses specializing in accounting, law, healthcare, construction, engineering and information technology.
China Education Alliance Inc. (CEAI on the Pink Sheets) sells “education resources” online, a fancy name for a huge database of informative practice exams.
ChinaCast Education Corp. (CAST) actually owns several Chinese universities and is expanding its enrollment with online degree options.
New Oriental Education & Tech. Group Inc. (EDU) is the largest English and college entrance exam preparation school in China.
TAL Education Group (XRS) is the largest private educational tutoring company in China.
Noah Education Holdings Ltd. (NED) sells electronic education materials, and distributes its content primarily through handheld digital learning devices.
Xueda Education Group (XUE) is also a private tutoring company but differs from TAL Education in that it tutors university students as well as high school students.

Education is a rock-solid industry that has a very bright future and has the ability to prosper no matter what happens to the U.S. economy.

However, that doesn’t mean you should rush out and buy any of the other above-mentioned stocks today. As always, timing is everything so be sure to do your own due diligence before committing money to any new positions.

Until next time,

Tony

Chinese Consumers Pick Up the Slack from America

Tony Sagami — Fri, 22 Jun 2012 18:56:00 GMT

Lower prices at the gas pump have given your wallet some relief in recent weeks. But if you’re like most Americans, you probably haven’t channeled this cost savings back into the economy.

While U.S. consumers are giving their debit cards a rest, retail sales in China are trouncing ours. In fact, retailers are among the country’s fastest-growing and most profitable stocks.

In today’s video, I’ll show you how you can play China’s top companies, by buying right here in the U.S.!

Best wishes,

Tony

One U.S. Computer Stock to Avoid at All Costs

Tony Sagami — Fri, 08 Jun 2012 20:28:00 GMT

Although there are great profits to be made by investing in U.S. companies with a solid strategy to do business in overseas markets, I avoid recommending American companies that compete directly with Asian rivals.

Today, I’ll tell you about one U.S. computer maker that’s sinking like a stone while a formidable competitor in Hong Kong surges. In fact, the Asian company’s profits soared by 54% in the past quarter and were up 73% for the full year.

Learn more about this company, and the one I’m staying far away from, by watching today’s video.

Best wishes,

Tony

Investing in Education a 'No Brainer' for Chinese

Tony Sagami — Fri, 01 Jun 2012 17:16:15 GMT

I was less than 2 years old when my parents divorced in 1957. My 20-year-old Japanese mother suddenly found herself living in a strange country with no family, friends, money, food or place to live.

Yet instead of returning to Japan where her family and friends were, she scratched, rummaged and scavenged enough to make a new life for us in America. Why?

My mother knew that a half-Japanese, half-American child had limited opportunities in Japan. It wasn’t like it is today; the wounds from World War II were too fresh. I would have never gone to a top university or landed a top job.

Even though my mother barely spoke English and seldom had more than two nickels to rub together, she fiercely held to the idea of the American dream. “In America, anybody can get rich if they work hard,” she told me.

And she was determined to have me prove her right.

Putting the ‘Earn’ in ‘Learn’

My mother ordered me to sit in the front row right in front of the teacher’s desk. She gave me almost-daily lectures on the importance of education, and punished me severely if I brought home anything less than an A. My mother was a big believer in corporal punishment and I got the spankings of my life for anything less than straight-As.

For someone who started off as a homeless immigrant, my mother saw all her children grow up to achieve great professional success. I am sad to say that my mother died seven years ago from cancer, but I preach the same lessons about education to my children to this day.

Those same lectures about education are given every day all over Asia, especially in China, because academic success is a top cultural priority even despite the effects of the global economic slowdown.

Spending on Schooling
Shouldn’t Slow Down

Consumer spending in China is still robust but there’s no question that it’s slowing down. The latest numbers for April showed that retail sales in China grew by 14.1% on a year-over-year basis.

While that may sound good compared to the sluggish U.S. retail sector, it is the lowest number in 14 months and far-below expectations.

Chinese consumers are becoming more-selective with their spending but, according to a new survey from A.C. Nielsen, education is one thing that they don’t skimp on.

3 Facts About China’s
Changing Spending Habits

You may think of Nielsen as a U.S. company, but they do business all over the world, including China. Nielsen, which provides data on consumers’ spending and viewing habits worldwide, surveyed 3,500 Chinese people from a range of backgrounds. Its newest survey of Chinese consumers disclosed some important facts:

Although Chinese consumer confidence rose in the first three months of 2012 to its highest level since 2005, making China the world’s fourth-most-optimistic nation, willingness to spend remained flat.
China’s consumers are cooling toward discretionary spending, even on important things like food, clothes, holiday gifts and entertainment. Spending on all those categories dropped from the previous quarter.
Consumers were willing to devote more money to only two areas: Savings and education.

That last piece of data tells you how important education is in China.

Most Chinese students don’t finish until 5 p.m. or 6 p.m., watch little television and play very few video games. They are prohibited from working before the age of 16, so they can concentrate on school. Plus, most students attend tutoring classes after school and on Saturdays.

“Very rarely do children in other countries receive academic training as intensive as our children do. So if the test is on math and science, there’s no doubt Chinese students will win the competition,” said Sun Baohong of the Shanghai Academy of Social Sciences.

Plain and simple, the education sector is an all-weather, recession-resistant, steady growth winner and there is a way to profit — HANDSOMELY — from the Asian obsession with education and academic success.

10 Chinese Education
Stocks for U.S. Investors

Did you know that there are 10 Chinese education stocks listed on the NYSE and Nasdaq? Yup ... and here they are.

ATA Inc. (ATAI) provides computer-based training courses to pass professional certification exams such as banking, insurance and accounting.
Ambow Education Holding (AMBO) has a unique combination of hands-on personal tutoring supplemented with online training.
ChinaEdu Corp. (CEDU) is the Chinese equivalent of the University of Phoenix, offering online college degrees.
China Distance Education Holdings (DL) offers online education and test-preparation courses in accounting, law, healthcare, construction, engineering and information technology.
China Education Alliance (CEAI.PK) sells “education resources” online, a fancy name for a huge database of informative practice exams.
ChinaCast Education Corp. (CAST) actually owns several Chinese universities and is expanding its enrollment with online degree options.
New Oriental Education & Tech. Group (EDU) is the largest English and college entrance exam preparation school in China.
TAL Education Group (XRS) is the largest private educational tutoring company in China.
Noah Education Holdings (NED) sells electronic education materials, and distributes its content primarily through handheld digital learning devices.
Xueda Education Group (XUE) is also a private tutoring company but differs from TAL Education in that it tutors university students as well as high school students.

As you can see, there are several ways to profit from the Chinese obsession with academic excellence.

I should disclose that my Asia Stock Alert subscribers currently own New Oriental Education and many are sitting on more than a 200% gain. That’s a big return, but I think there are more profits yet to come in these shares.

That doesn’t mean you should rush out and buy New Oriental Education or any of the other above-mentioned stocks tomorrow morning. The education sector has been hot, and most of these stocks have already had big gains.

I recommend that you wait until they go on sale or wait for my buy signal in Asia Stock Alert before committing any new money.

But make no mistake, educational services is a sector that should deliver big, big profits.

Best wishes,

Tony

The Chinese Slowdown Hits U.S. Bottom Lines

Tony Sagami — Fri, 11 May 2012 17:32:00 GMT

After years of blockbuster growth, the Chinese economy is slowing down. This is taking a toll on some American companies that do business there, in the form of unsold inventory and higher labor and commodity costs.

But don’t write off China just yet. There are still plenty of American companies making a mountain of money there. This means that many U.S. stocks are going to live or die based upon their success (or lack thereof) in China. I’ll talk with you about one of the most-promising ones in today’s video.

Best wishes,

Tony

P.S. My Asia Stock Alert members were up on 8 of the 9 trades they closed so far in 2012. I’m not talking wimpy returns — they saw gains of up to 226%, 54.8% and 37.6%, with plenty more where those came from! See how individual companies are profiting from Asia, and how you can too, by clicking here now!