Hy GY, If you believe:
... <<emerging markets bonds>> is hot and/or too hot
<<Chinese currency undervalued>>, and
<<Oil prices>> remaining at current value or rising, which I do, then you should consider tracking and accumulating ...
finance.yahoo.com
finance.yahoo.com
finance.yahoo.com
... because,
(a) as emerging market bonds go up in price and come down in yields, dividend paying emerging market stocks become relatively more attractive;
(b) as China adopts the automotive economy (lots of auto assembly operations), rather than investing in such operations, best to invest in what the cars need in order to run;
(c) if and when China's currency gets revalued against the USD, the above companies should benefit, as they sell in RMB and buy in USD;
(d) if and when oil price rises in USD/RMB terms, the above companies presumably can raise domestic selling price in an extent and also their purchased oil reserves gets more valuable.
Of course, the above would only do well if the broader Chinese economy does well, and that is the risk.
I own all three shares. Petro China is available in the US as PTR, and the other two are available in the US as foreign shares.
Chugs, Jay |
