Why Obama went to China
Today's Financial News - Posted November 16, 2009
Wall Street may have its eyes fixed on Main Street, but the big gains and the real economic recovery can be found in Asia. Why do you think Obama paid it a visit?
By Andrew Snyder, TodaysFinancialNews.com
Baltimore – (TFN): It is no surprise where the winners are coming from today. Small caps and Asian stocks have been hot, hot, hot. Combine the two and you’ve got your hands on a scorching portfolio.
With all three major indices surging by over 1% today, there are plenty of winners out there. As I write, 4,752 major-index equities are up, while 1,471 are in negative territory.
The odds are in your favor.
As I have said a lot lately, if you really want to get your portfolio cooking, get some exposure to Asia’s boiling economy. Today’s action should be all the proof you need.
Shares of China’s SmartHeat (NASDAQ:HEAT) are up by over 20% as the energy-saving company impressed investors with its third-quarter earnings. Compared with the year-ago period, the company’s bottom line more than doubled, as the $272 million company earned $8.9 million.
Even better, the company’s top brass reassures investors the country’s quickly expanding construction industry will lead SmartHeat to another strong year.
It is a similar story for Hong Kong Highpower Technology (AMEX:HPJ). The nickel metal hydride battery maker has handed its investors some wild gains over the past three months as shares climbed from the buck-and-a-quarter range all the way to the five-dollar mark. Right now, shares are trading for $4.89, up 20% from Friday’s close.
Once again, the action can be attributed to China’s rapid economic expansion.
Highpower confirmed expectations last week with a strong quarterly report that showed significant bottom line growth, from $289,400 a year ago to $2.4 million this year.
China, via Cali
Finally, Netlist (NASDAQ:NLST) should be on your radar. This one is not a pure play on China, but as a supplier of DRAM technology to the country’s growing computer industry, it has plenty of exposure to future growth.
Today’s 40% surge in value should be all the proof you need to realize the company’s future potential. As China’s economy grows, so will its IT demand and so will its competition with American manufacturers.
Companies like Dell (NASDAQ:DELL) are quickly beginning to realize the competition that awaits them overseas. If you want to get in on one of the world’s fastest growing markets, China is the place to be, especially when it comes to computers.
While Obama is in China trying to shore up our currency and our trade relations, his biggest attribution will be the attention he brings to Asian economies. Investors will quickly realize there is plenty of potential overseas.
Take advantage of it.
Next Article: TFN eNews 11/16/2009: Other than that, things are fine!
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