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Strategies & Market Trends : SXPT - Sino Express Travel, Ltd. (Bulls Board) -- Ignore unavailable to you. Want to Upgrade?

To: hotlinktuna who wrote (22)	1/27/2006 9:34:27 AM
From: phonepo26	Read Replies (1) \| Respond to of 38

SXPT .22 X .25 Under Wall St.'s radar....1.3m FLOAT SXPT Cheap might be a word associated with Chinese exports, but it hasn’t been used for some time to refer to Chinese stocks, which trade here as American depositary receipts (ADRs). Yet of the 11 stocks I looked at, the average price-to-earnings ratio based on estimated 2005 earnings is a scant 15.8. Of course it should be noted that few of these companies have wide followings on Wall Street, so the earnings estimates come from a limited number of analysts; in several cases, it’s just one. Still, it seems reasonable to assume that the stocks are cheap, at least by historical standards. Even if the Street is being too optimistic by 10%, the group would still be cheap relative to the market. What’s more, Chinese companies are likely to benefit from an explosive economy for years to come. Bolstered by strong exports, infrastructure improvements and an expanding middle class, China has average GDP growth of 9.3% over the past two years, more than double the U.S. growth rate. Slow it down Meanwhile, the Chinese government is taking steps to prevent the type of hyper-growth that often precedes a prolonged downturn, such as what Japan experienced. If the government succeeds in maintaining GDP growth in the high single- to low double-digit range, there’s every reason to believe that Chinese companies will continue experiencing robust growth as well. Strong growth and cheap prices is an attractive one-two combination on Wall Street, and one that's increasingly difficult to find. Consequently, when you come across such a find, you want to exploit it to the fullest. How best to do that in this situation? One way is to invest in country-specific mutual funds. There are several tied to China, but most are littered with relatively high fees. Another way would be to buy shares in one of the new Chinese exchange-traded funds, the iShares FTSE/Xinhua China 25 Index Fund (FXI, news, msgs) or the PowerShares Golden Dragon Halter USX China Portfolio (PGJ, news, msgs). The former invests in stocks listed on the Chinese and Hong Kong markets, while the latter invests in Chinese companies trading on U.S. exchanges. Both give investors simple ways to diversify their assets without having to spend much time researching individual companies. That’s a feat made more difficult when investing in overseas companies given different accounting rules, limited availability of information, etc. On the downside, the ETFs are heavily concentrated in a few industries. Or investors can simply buy a number of individual Chinese ADRs. Though this approach offers less diversity, it’s relatively cost-effective and allows you to pick and choose the most appealing candidates. Considering that foreign stocks most likely make up a small percentage of your overall portfolio, this trade-off might be worth the added risk. If so, here are some stocks worth considering. americanstockreview.com