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

by Travis Johnson, Stock Gumshoe | June 7, 2008 12:26 pm

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?


Source URL: https://www.stockgumshoe.com/reviews/blue-chip-growth/chinas-50-billion-shocker-part-2-navellier/


  1. Michael
    Jun 8 2008, 10:52:35 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 aware of my current darling – a sweet Canadian green microcap (not for long methinks!) poised for immanent and explosive growth IMO. Essentially they are all about energy efficiency for industry with a great suite of complementary solutions. AND they have an ‘industrial trial’ – for a patented tech that performed as desired in the lab – underway with SCUT (China’s MIT) that will make coal a clean source of energy (ThermalOzomax)!!

    TMG.V http://www.thermalenergy.com

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

    New CEO, Tim “The Bulldog” Angus (when you see his picture and suss out his grit and smarts you will know why I tossed in my nickname for him), a former top sales rep for JCI, has been laying a granite foundation in his restructuring of this company

    I just suggest you to the website, and a perusal of the NR history for the last 2 years. The most recent?? The biggest deal in the company’s history, representing 1/5 of the business coming from just one client. The sales pipeline is now around 1/4 billion, and has been growing exponentially over the last 2 years.

    Best of all you won’t have to sit and wait like I did for that new granite foundation to bear fruit, AND the current SP is an attractive .30 (not for long!!)

    Hope some of you do well on this one …

    Michael

  2. Michael
    Jun 8 2008, 11:40:42 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 I’m going to like it here … hope I don’t wear out my welcome too fast (wink).

    Michael

    PS does anyone know if it’s OK to share OT material on stuff like amazing health breakthroughs etc. here? I’m sure no one will mind if the share the link to this amazing story/video …

    http://transformationteam.net/video/elephant_artist.php

    Best,
    Michael

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