New China Trader

Four 100% Gainers in Four Months

I was in China again this past April, on yet another investment tour… and the information I helped subscribers uncover led to some impressive wins.

Including these 100% gainers:

China Double #113

The first double was a small dry goods shipping company.

According to Sichuan government sources, earthquake reconstruction efforts alone will require 37 million tons of steel over the next three years. And between expected demand from the stimulus and reconstruction efforts, steel demand in Sichuan province alone could exceed 50 million tons annually in the coming years, equivalent to 10% of the national demand estimated for 2010.

And that proved to be very good for companies like this shipper… that specializes in transporting hard goods like steel.

We recommended it at $2.27 in April of 2009.

Less than thirty days later, we’d doubled our gains, and closed out half our position at $4.54 – potentially recouping readers’ original investment and giving us a free-ride on the play.

China Double #214

The second Double is one the best stories I’ve uncovered in China in a long time – and it’s sort of the sister act to the shipping company I just told you about: a steel company.

Steel investment makes up a huge portion of China’s stimulus funds… and companies that make the stuff are going to continue to receive favorable treatment from the Chinese government.

We first recommended this company $2.35 a share in March 2009.

In less than 30 days, we were up 100% – and closed out half our stake to recoup the original recommended investment. And we’re still sitting on this free ride.

China Double #315

The third double is a small “green tech” energy company… that specializes in photovoltaic energy generation – solar power.

I’d learned that the Chinese Central Government would be spending as much as $30 billion to support green programs as part of its new stimulus package.

In April 2009 we said “buy” to this green tech firm… at $6.69 a share.

In June, we recommended selling half at $13.64 – a gain of 103.89% – and we’re still riding this baby for free.

China Double #416

Knowing that the health and well-being of the Chinese people is one of the most important factors keeping China’s financial growth on track, the Chinese Central Government’s is participating in a large-scale effort to improve public health.

And this bio-tech firm focuses on the research, development, manufacturing and commercialization of vaccines that protect against human infectious diseases. Their portfolio of regulatory-approved products consists of vaccines against the hepatitis A, hepatitis B and influenza viruses.

We alerted investors with to this “buy” at $2.50 a share in May 2009 – and closed out half at $5.00 in August… another free ride we’re still on board for.

This company then doubled again – going from 5 bucks to $10.46.

Four plays – four 100% gains.

As investors, selling half the position when the shares double affords us an luxury few investors enjoy: it allows us to stay in the game, without further risking our initial capital.

Basically, it’s like playing with the house’s money in a casino.

This means the stock could literally go to zero overnight… and we wouldn’t care.

Because we’ve already paid for our investments.

After that, we just sit back and let these “free” trades ride forever…secure in the knowledge that every gain from then on out is pure gravy!

Also, taking our doubles off the table lets us to free up our investment capital for other opportunities as they come along.

Here’s the thing you need to understand about this strategy…

… don’t think that it’s just about “mere” doubles.

The last stock I just told you about – the bio-tech company – so far we’re up 292% from our original recommendation.

We took gains on one double…

and then on a second double

and right now we’re waiting to rake in a third 100% gain – all from one single recommendation.

That’s basically free money – because we’ve already recovered the initial recommended investment.

And we’re still holding onto all of these… I’m expecting a lot more out of these companies.

Now, I’d like to tell you the names of the companies I’m talking about here…

… except that wouldn’t be fair to the subscribers who rely on my confidentiality. We’re still holding onto these winners in our model portfolio… and we’re still making money.

The Inside Track to China Profits

My intimate knowledge of the ins-and-outs of business life in China lets me take advantage of market changes in China as they are happening.

And one of my favorite strategies is to use options to exploit fast moving situations … which I used to post some quick gains:

  • GSH puts – for a 137% gain
  • ACH calls – for a 244.8% gain
  • ABB calls – for a 138.4% gain
  • FXI calls – for a 327.1% gain

That’s a total of 847% in gains – because I knew what was happening within China at the right time… and I knew the fastest way to take advantage of the situation.

$10,000 invested into these options would have handed you $84,700.

I was telling you earlier about the real secret for making money in China – look where the government money is going, and that’s where you find the profits.

Let me show you exactly how that works… and how you could have used this simple concept to crank out some the enormous, almost unbelievable returns.

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