The Chinese Stock Market Bubble: Follow the Money!
By J. Christoph Amberger
Taipan Group's Dynamic Market Alert
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Diligent Investor Makes 669% Gains in Six Months!
I’ve tallied up the Diligent Investor stock portfolio gains for the first half of 2007, and they’re on course to surpass 1,000% by the close of the 2007 calendar year. With open and closed positions combined, we could cash the entire portfolio out for 1,007% gains today!
Why should you be interested in Diligent Investor? Because you could be among the elite group if investors that are seeing extreme capital gains for their retirement portfolios through this current bull market. For the first half of 2007, readers of Diligent Investor have been able to cash out for gains totaling 669%, with each position averaging gains of 26%.
Of course, these total gains are cumulative. As far as cash-weighted returns are concerned (taking into account our total entry prices and total exit prices on all closed positions of the year), it comes out to be 25.03%, faring much better I’m sure than most 401(k)s.
For the second quarter of 2007, they made gains of 165%! Not too bad in three months’ time!
While some of our positions are at current “hold” status, there are still 15 stocks in our portfolio that I currently consider at perfect entry points for strong portfolio gains. That’s nearly 68% of the portfolio, including IPO stocks, M&A positions, dividend-paying blue chips and more, spread out across various industries.
By getting into these 15 positions today, you’ll be on your way to impressive gains for the rest of 2007. Just imagine making 669% gains in the next six months… and then make it a reality. If current Diligent Investor subscribers can do it, so can you.
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The Chinese Stock Market Bubble: Follow the Money!
by J. Christoph Amberger
Beijing bureaucrats are now regularly talking about market bubbles. Politicians raise stamp taxes. The government authorizes enormous bond sales and encourages flows of capital to be redirected from the mainland stock exchanges abroad.
This has analysts worldwide issuing dire forecasts about the imminent implosion of the Chinese stock market bubble.
But apparently, their pessimism is not shared by some of the mega-companies pushing on the mainland exchanges. Among the corporate behemoths planning to use the Shanghai market as their private ATM in the next couple of weeks is Hong Kong-traded China Construction Bank, the country's third-biggest lender, which will issue up to 9 billion A-shares. They have their eyes set on raising as much as $5.5 billion.
Chinese oil giant PetroChina also has not received the memo about Shanghai going belly up. They may not have set a price and a date yet, but they're rearing to throw 4 billion shares into the ring, for a targeted take of $6 billion.
Will the Chinese retail investors, whose yuan make up 60% of all Chinese stock market transactions, take the bait?
Well, consider this: PetroChina announced last month that it had made the largest crude discovery in a decade, right off China's northeastern coast, with proven reserves of almost 3 billion barrels.
My guess is that both issues will be oversubscribed by a factor of at least 8, that the capital raised will set new records, and that the Chinese bull market will continue.
For two of our current picks, I recommend you check out the free special report we have uploaded for you on TaipanFinancialNews.com. It's yours for the clicking.
Quote of the Day
“Universal Pictures announced they plan to make a movie about the life of Hugh Hefner. I don’t want to say that Hugh Hefner is getting old, but do you know who is playing the young Hugh Hefner? Peter O’Toole.”
- Jay Leno, June 27, 2007
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