This email teaser came in from Robert Hsu, and it includes a couple companies we’ve teased out before but also several new ones.
The tease is for Hsu’s Asia Edge service, his expensive one that costs $2,995 a year … you get the seven bubble proof Asia stocks “Free” when you start a subscription.
But I don’t have that kind of money to throw around for free reports … so let’s see if we can’t get a few ideas here for free. Readers sent in a couple solutions, I’ve done one or two of these before, and we’ll sniff out the rest.
The first “bubble proof” stock:
It’s located in Illinois, and does something to scrub soot from power plants, and it’s already working in India and China.
“It’s remarkable to think that a single undiscovered Illinois company with a patented solution for this mess is NOT in your portfolio.”
So … not a lot to go on, but China, India, patents and scrubbers in Illinois leads us to …
Well, there are a bunch of companies that make scrubbers or scrubber technology in Illinois, and virtually all of them have some kind of patent for something. But the most likely pick sent in by a reader (and I agree) is FuelTek (FTEK). They are working with coal plants in China, they do specifically clean coal emissions through work on the power plant itself (not just a scrubber on top of the smokestack).
And they’re not cheap. Forward PE of 50, so buyer beware and make sure they’ve really got that growth in the bag.
Bubble Proof Stock #2: “Call the Philippines”
The most profitable call centers are in the Philippines (who knew?) … this company has something to do with them.
“Yes, an economic slowdown would hurt this call center stock—but it would have to be a catastrophic U.S. slowdown. Not impossible. Just unlikely.”
That’s got to be Philippine Long Distance (PHI). They have a subsidiary that runs call centers, as well as being the major telecom provider for the Philippines (wireless, broadband, and regular telephone), so they run the backbone for any other call centers in the country. Hsu has talked about them before. Not particularly expensive, and a decent yield of around 5% just like our big telecoms.
Bubble Proof Stock #3: “Container Yourself”
This is SeaSpan (SSW) — we’ve covered it from a Hsu teaser before, for this same service. Shipper that runs boats on long term charters to container companies, essentially ends up acting sort of like a MLP for container vessels. My full writeup, including my interpretation of how they make a profit, is here.
Bubble Proof Stock #4: “The B in BRIC”
This is for a Brazilian miner …
“Prices of iron ore are set annually, which puts a solid floor on earnings forecasts. Price negotiations with the Chinese steel producers have yielded steady increases in base price, spectacular earnings and juicy dividends.”
up 121% since September, forward PE of 9.
Hsu says, “You’ll walk away with a double in 18 months even if the Asia’s economic growth slows down a point or two.”
So what is it?
Gumshoe sez: Compania Vale do Rio Doce (RIO) — this big iron ore (and other stuff) miner is indeed a big supplier to China, and the price and PE ratio match quite perfectly. No secret here, but if you think steel demand will remain very strong there’s probably no reason to think RIO won’t do well over the long term.
"reveal" emails? If not,
just click here...
And Bubble Proof Number 5: The “R” in BRIC
Which of course, is Russia. Investing in Russia scares me silly, but that’s not the question here.
This is for a mobile telecom company, operating in Russia and expanding to Armenia and Georgia with rapid growth.
That means it’s almost got to be …
Vimpel Communications (VIP), the big Russian mobile telecom company. They are already in many of the former Soviet states, and “recently acquired” companies in Georgia and Armenia to expand there. I don’t know much of anything about this company, other than the fact that I generally avoid investing directly in Russian companies, but the valuation seems pretty reasonable if they can keep piling on Eastern European subscribers at a decent price.
And bubble-proof #6: “Let the Games Continue”
Apparently, consumers love entertainment companies regardless of the economic cycle (