“New Recommendation Looks a Lot Like Apple in 1997” (Robert Hsu)

Sniffing out a China Strategy tease

By Travis Johnson, Stock Gumshoe, November 2, 2011

Robert Hsu introduces the latest teaser of a stock he’s recommending in his China Strategy service by saying that it “looks a lot like Apple” before that company made its historic stock market run, back when Steve Jobs was re-hired by the company, before the iPod (let alone the iPhone) was introduced.

And of course, as everyone is always seeking out the next Warren Buffett … so they’re also always searching for the next Steve Jobs — and the next company that can generate the 11,761% returns that Hsu says Apple stock has given prescient investors (I haven’t checked, but that mind-boggling number sounds about right — as long as you’re talking about holding the stock for close to 15 years). Here’s a bit of the teaser to get you interested:

“To be sure, I’m not going to be so bold as to tell you that my new recommendation is going to be THAT company, or that its current CEO is on the same level as Steve Jobs. But I am going to say this:

“The company that I’m highly recommending possesses a unique, proprietary 3-in-1 game-changing mobile technology breakthrough that we believe will not only change the smartphone sector in the same way the iPhone did when it was introduced in 2007…

“… but will also deliver the kind of annualized money-doubling returns Apple has handed investors for the past 14 years.”

The argument is that this company’s “3-in-1” mobile phone technology is generating huge sales growth in China and gives them a “have to have” status, which will mean the stock doubles and redoubles every year for, one hopes, decades to come.

The clues about this company pile up a little bit — in addition to this “3-in-1 technology” we learn that they’ve posted 124% revenue growth in a recent quarter, and that the shares have doubled over some undisclosed time period and outperformed Apple itself by 2-to-1 … and that the technology “makes the smartphone in your pocket obsolete.”

And what’s this three in one technology? Here’s how Hsu describes it:

“… the company’s advanced, state-of-the-art 3-in-1 technology allows one phone to possess three numbers that can connect to three different carriers—at one time….

“Instead of your being locked into a long-term contract with AT&T, Verizon, T-Mobile or Sprint, or having to buy a new phone to change carriers, you will have in your hand the ability—the FREEDOM, if you will—to change carriers to grab cheaper call prices and better network coverage with the push of a button—all while retaining your contacts AND without your having to buy a new cellphone!”

But it’s not just this “3-in-one” technology, apparently — Hsu says they’re big in China in other ways …

“The company’s complete line of mobile chipsets dominates the Chinese smartphone markets the same way Apple dominates digital music and tablet computing—with a 56% market share in the fastest-growing mobile phone market in the world.”

And this won’t come as a surprise to veteran Hsu-watchers, who know that he tends to use the same kind of momentum-following strategy as Navellier and Investors Business Daily, but this is not an “unknown or unloved” st