“China’s $50 Billion Shocker” Part 2 … Navellier

Not long ago we took a little gander at a stock Navellier has been touting as a potential recipient of hot, incoming Chinese investment funds. I promised a glance at the others, too, so here we go.

“Hot Money Stock No 2: As I regularly remind my readers, the master key to investing in stocks can be boiled down to two simple words: earnings growth … Hold on to your hat—in the past four quarters, the company has not only posted 17.2% sales growth but also a whopping 1,407.7% earnings growth. So it’s no surprise that the company is up 40% over the past 12 months.”

What else do we find out about these guys?

They have “virtually cornered the market on Canada’s cable, mobile phone, and telecom industries. When you add in the company’s interests in media and publishing, you can begin to see a Google-like sales growth headed its way.”

Apparently, Navellier believes that most of us have never heard of this “Canadian powerhouse”, so we can still get in before prices explode to the upside.

His advice: “Buy this one now, before the next reporting period, and you could be looking at a quick 30% to 40% quarterly gain.”

You might have already guessed this one — it may not be an American household name, but it certainly has that status North of the border. This is Rogers Communications (RCI)

Again, Navellier has liked this one for a while — I don’t know if he got his subscribers in and out of it when it hit $53 last year then dipped down to $33, but he was touting it at least up to $50 or so at the end of the Summer. The price is around $40 now. Analysts are predicting decent growth, actually pretty solid growth for such a larger company, but they aren’t exactly showing blowout surprises — they’ve been beating estimates, but just by a little.

Rogers is a $25 billion company, sort of comparable to a Verizon or AT&T for Canada, though they’re more diversified than most — they’re both the biggest cable company and the biggest wireless telephone company in the country, plus they own a bunch of magazines, TV stations, Cable TV channels, and the Toronto Blue Jays.

It’s certainly growing, but I don’t know much about the regulatory environment in Canada or what kind of competitive threat any of they older media companies pose. Rogers is the jewel of the bunch up there, to be sure, but at some point one would imagine that they would run out of space to grow in a relatively sparsely-populated country (No offense to Canadians, but it ain’t like buying a mobile phone provider in India, with almost unlimited growth). To some extent, big media companes make me more comfortable when they’re clearly “value plays” and trade at a deep discount — Rogers does not, but they’ve got the growth to show for it, so it may be right up your alley.

Plus, maybe the Canadian dollar will take another leap forward — that would make those earnings in loonies look quite a bit sweeter for Americans. On the other hand, of course, if the Canadian dollar falls back below the current range (near parity with the US dollar), their earnings will look worse. Let it be said that the Gumshoe has no crystal ball for earnings or currency movements.

Like what you see, eh?


Related Gumshoe Articles

Leave a Reply

7 Comments on "“China’s $50 Billion Shocker” Part 2 … Navellier"

avatar

Paul Albert
Guest
0
Paul Albert
June 8, 2008 10:27 am

Do you ever critique mutual funds?

Michael
Guest
0
June 8, 2008 10:52 am
This is totally off the topic of today’s analysis, but I note sharing tips here is not considered spamming so here is my current “darling”. I shared info on this stock in an e-mail to travis also, so why don’t I just cut and paste it here … For those who can’t afford stocks like Rogers, here, IMO, is one of THE best green microcaps on the venture X … Hello Gumshoe, Stumbled across your site while googling for the “Oil Vacuum” company name (thanks for providing it and the ‘other side’ of the story). I wanted to make you… Read more »
Skip
Guest
0
Skip
June 8, 2008 11:19 am

“It also trades in the US but I couldn’t find the call letters for you.”

I think it’s TMGEF.

Bob
Guest
0
Bob
June 8, 2008 11:27 am

Thanks Michael. If you ever find the American ticker symbol, please let us know. You can send it to me directly, if you should be so disposed, at robts_coffey@yahoo.com.

Michael
Guest
0
June 8, 2008 11:40 am
My pleasure Bob, and I see Skip has provided the answer to your question – isn’t the internet/sharing wonderful?! As I noted to my brother the neo-con CFA … “Monday, June 9, 2008 … the best day ever to buy into TMG (the BBers on Stockhouse anticipate the company will seek to boost the SP as much as possible prior to the financing of the acquisition of the GEM Steam Trap company at months end – to understand better what this means you will have to be interested enough to look at the NR history – http://www.thermalenergy.com . I think… Read more »
Ron
Guest
0
Ron
June 11, 2008 9:46 am

Michael:Cool stuff and interesting links.Ron.

RD
Guest
0
June 27, 2008 2:16 pm

Anybody have a list of navallier’s recent oil picks?

RD
http://bakkenstocks.com

wpDiscuz