Reports and Commentary from the Investment World
Reports and commentaries are posted here on a regular basis.
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Spectacular gains from international investments 2 [2005-12-01] |
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Some of the most profitable foreign companies are those supplying the goods and services needed to support growing economies like China and India. For instance...
· Chinese resin and plastics maker Sinopec Beijing Yanhua Petrochemical surged 242% in 10 months...
· Another Chinese manufacturer - Aluminum Corp. of China - has been benefiting from the global boom... up 324% in just over a year...
· Eastern Europe's largest mobile phone company, Vimpelcom, rose 116.7% in less than seven months...
· And shares of the Asian software developer Infosys rose an astonishing 1,154% in under a year. But even those gains are tiny compared to the profits Luxembourg's Millicom International Cellular. That company - which supplies cellular service to developing countries - soared 5,293% in just 14 months!
But that's just a sampling of the huge gains being enjoyed by markets benefiting from burgeoning growth and the flow of money from U.S. devalued assets.
Many more are companies you know well.
United Kingdom's Rolls Royce Group has jumped 199% in less than 10 months...
Swedish cell phone giant Ericsson is up 331% on the dollar's woes in less than a year...
The British office equipment firm, Danka Business Systems, rose 492.7% in 13 months.
Consumer electronics giant Sony jumped 371% in 13 months. Its competitor, Hitachi, rose 299.7% in 15 months. As you can see, these international companies are hardly "foreign" at all. You and others buy their products everyday.
Why These Profits Are Happening Right Now And clearly there is money to be made in these markets. Especially now. Why?
Reason Number One; money tends to flow to international markets when the U.S. investments and the U.S. dollar are less attractive... like now.
Reason Number Two; foreign shares are breathtakingly cheap compared to U.S. stocks. Whether you're looking at sales, earnings, book value or dividends, foreign shares are a bargain compared to U.S. stocks.
Say you use your U.S. dollars to buy a Swiss company's stock that's denominated in Swiss francs - and the dollar declines 20% against the Swiss franc. You've made a 20% profit... even if the stock doesn't budge in price. Even if the stock price falls 10% - you're up 10% because of the currency appreciation...
That's pretty nice in itself...
But here's what's happening. More and more savvy investors are seeing this opportunity. And they're dropping their U.S. denominated investments in favor of better-valued stocks held in stronger currencies. That's driving the stock prices higher too.
These "double whammy" gains could make you very rich...
You get the benefit of the currency appreciation... and you get stock appreciation as more and more money finds its way to these once ignored and therefore vastly undervalued equities!
Add to the mix a number of global economies that are showing renewed signs of growth and prosperity and you have a recipe for outstanding profits.
Best of all, there is a way to make your move easily... with the right information. |
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