Oversold China
For those of you who own these small cap Chinese stocks you have being seeing a lot of red lately. This can be attributed to recent accounting errors from Chinese public companies, inflation concerns, and a general bearish outlook on China. Why do I believe that these stocks are being discounted too much? I honestly believe that investors think that a dollar in China is worth less than a dollar in the U.S.
If you have a tighter investment horizon then I think you can get international exposure through large cap U.S. names, like JNJ and MCD. However, if you are more risk tolerant or are trying to beat the market I would take a look at some Chinese small cap companies.
Take a look at VIMC, XIN, and CHOP.
Purple Hair Play
The population is aging considerably. The U.S. census showed an average age of 38 in 2010 compared to 35 in 2000. That is going to continue to grow.
If you plan on investing until 2030, look at CVS, JNJ, ABT, and AHS. Those are my favorites for a long-term play. Honestly you can't go wrong with JNJ or CVS. These companies will always have solid top line and bottom line numbers. The older population buys more prescriptions and general health care products and services.
This might be the safest investment I have ever seen.
Another Chinese Small Cap that is looking disturbingly cheap is COGO. Take a look at its multiples and earnings history, I think you will be pleasantly surprised. Also, all 7 analysts covering the stock has it as a BUY.
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