Investing In China Via US Public Markets Investors are hoping for a turnaround in 2009, but considering the pain that has continued for more than a year, they are reluctant to bet on it. The overall outlook for U.S. companies for 2009 is not good either, with negative GDP growth expected during the year. The economists' median forecast calls for U.S. gross domestic product to fall by 1.5% in the first quarter of 2009 and GDP growth of 0.2% is expected in the second quarter. The outlook for US companies and consumers is bleak to say the least. The real question for investors, is where can they find growth in an environment such as the one we are in now? If economists believe that in 2009 the US economy will be a repeat of 2008, then how can investors find a way to make money via the markets? Since the overall outlook for U.S. companies for 2009 is overwhelmingly negative, the lone bright spot in the U.S. markets will be for China-based companies listed on the exchanges. While the U.S. economy is expected to decline in 2009, the economy in China is expected to grow by 8.5%. This trend is not about to go away either - the growth disparity is enduring and has been for some time (see below). In fact the U.S. economy has not delivered economic growth above 3% since 2004. In 2007, a few short years ago, America's economy grew at 2%, while China's grew at a staggering 11.9%. With the consistent lackluster performance of U.S. stocks, it should come as no surprise to investors that US companies are not able to provide solid growth quarter over quarter. US companies currently are unable to offer investors the type of growth that is going on in China. The Chinese Government has been and is continuing to drive China to become a world leader in almost every sector. With the current fiscal measures they have taken to assure this, we see China as a great investment for American investors for at least the next decade. So how can our members learn to profit from the fastest growing economy in the World? Believe it or not, it's not as hard as you think. Many Chinese companies have decided to tap into the US economy by going public on a US exchange. The Chinese realized that there is a lot of money here and by taking their companies public on a US exchange, they can raise millions of dollars in fresh capital. With many Chinese companies growing at 30% per quarter, and trading at similar PE's to their US counterparts, the opportunity for US investors to profit from this is unprecedented. Now you have the ability to buy stock in a Chinese company, just as easy as you can buy stock in a company like Microsoft. China is a preferred market for global investors in 2009 because for one, the central government has a healthy fiscal balance sheet and has the option to adopt aggressive fiscal and monetary stimulus measures to support growth. Unlike Russia, Brazil and India, China will benefit significantly from a collapse in commodity prices. China has committed to spend $400 billion on new infrastructure projects over the next five to seven years. That $400 billion will turn into more than $2.8 trillion of economic production by the time it multiplies throughout the banking system. With a population of 1.3b and an ever growing middle-class, the consumer spending estimates are off the charts and one of the primary engines for growth in major economies is consumer spending. In China the growth in disposable income and consumer expenditures has outpaced and will continue to outpace that in the U.S. by a wide margin. For example, consumer expenditures in China grew by 14% in 2008 vs. only 1% for the U.S. The results in coming years will be similar as U.S. consumers begin to pay off consumer debt and reverse a trend of essentially negative savings rates. Meanwhile Chinese consumers maintain savings rates of 50% and have virtually no consumer debt. There is no question where the bulk of future growth from consumer spending will come from. Chinese companies listed on U.S. exchanges will deliver growth in revenue and profits that cannot be matched by most U.S. companies, especially in this economy. Unlike the U.S., China has high foreign reserves, a healthy fiscal balance, a high savings ratio and a low government debt level, which enables policymakers to adopt aggressive fiscal stimulus measures to boost economic growth. Also, after the recent collapse in commodity prices, the CPI is now under control. Policymakers have the option to loosen the monetary policy aggressively to support growth without risking future inflation. China is no longer the Forbidden City and the Great Wall... it has become a country of bustling cosmopolitan cities, massive construction, manufacturing, shopping malls, Internet and cell phone users, Wal-Mart, and Starbucks. Today's smart investors are looking beyond their own borders for high growth opportunities. Many are focusing on China's ever-expanding economic pie. Consider these facts: o 100 cities with over 1 million people (only 9 in the U.S.) o 300 million people under age 14 o #1 market for mobile phones with 461 million users (larger than the entire U.S. population) o #2 market for Internet users at 137 million Now given the recent declines in the stocks of Chinese companies listed on U.S. markets during 2008, there are plenty of bargains to be found to generate outstanding returns in 2009. Three stocks to focus on include VisionChina Media, Inc. (NasdaqGM: VISN), New Oriental Education & Technology Group, Inc. (NYSE: EDU), and AirMedia Group, Inc. (NasdaqGM: AMCN). An Eye on the Future: VisionChina is China's leading national, real-time, digital mobile TV platform, covering 14 cities and more than 25,000 buses with over 50,000 panels. Its key business is selling advertising timeslots on its mobile TV platform. VisionChina's cooperation with local TV stations makes the company unique among China's publicly listed media companies, allowing for a live broadcasting network, the provision of content, and license ownership through partnerships with local stations. VisionChina's long-term exclusive agency contracts and joint ventures with local TV stations set a high entry barrier for competitors, as the company has exclusive usage rights to bus media resources, mobile TV licenses, and mobile broadcasting outlets. VisionChina is flexible in its dealings with local TV stations. The company signs exclusive agency agreements in tier-1 cities to take advantage of already lucrative advertising markets and forms joint ventures in tier-2 cities to lock in future growth potential. The Company generated $29 million in revenue for FY2007 with blistering growth of 266% to $106 million estimated for FY2008 and further growth of 30-40% expected in 2009. The Company's recent net margins are 40%+, including net profit of almost $49 million expected in FY2008. At $7.17 per share as of January 5th, VisionChina currently trades at an estimated PEG ratio of only 0.7x. VisionChina's growth drivers include: 1) sustainable growth in China's advertising market, 2) increasing advertising rates, 3) increasing viewership through improving content, 4) increasing utilization rates, 5) generating more revenue from direct sales and 6) sales of program sponsorships. New drivers include expansion into new cities and properties, potential M&A opportunites, and potential new business models. VisionChina's reliable revenue streams should ensure attractive equity value appreciation in 2009. Head of the Class: New Oriental is the largest provider of private educational services in China. The Company's selection of educational services includes English and other foreign language training, standard test preparation courses, as well as development and distribution of education content, software and online education. The Company's revenues grew 50% to $202 million during FY2008 and are still projected to grow 40% in FY2009. The Company's net margins are consistently 20+%, including net profit of $49 million in FY2008. At $55.38 per share as of January 5th, New Oriental currently trades at an estimated PEG ratio of only 0.9x. New Oriental is the dominant player in its core businesses, with 55-60% market share in overseas test prep, over 10% share of the domestic test prep, and 2-3% market share of the highly fragmented English language training market. New Oriental is poised to take further market share in the large and growing English language training and test prep markets. It has the most extensive program offering targeting students from ages 5-35+, with the largest student enrollment and with the broadest geographic coverage. As the dominant player in the market, New Oriental enjoys sustainable advantages that are difficult for competitors to replicate: o Premium brand - Established in 1993, the Company is the most well known private education brand in China. The Company differentiates itself with a strong corporate culture and unique teaching style. o Largest nationwide network - New Oriental's 43 schools and 179 learning centers span 40+ cities across China. The Company plans to continue to expand both geographically and by more deeply penetrating existing cities. o Unrivalled scale in China - Since its inception, New Oriental has educated over 5 million students, with annual enrollment topping 1.5 million entering CY2009. This large active student and alumni base induces viral marketing and promulgates network effects, allowing the company to leverage this large student base to introduce more products and services. A summary of New Oriental's product offerings is as follows: The Company's profit margins are expected to expand further as capacity utilization improves at the 6 schools and 71 learning centers New Oriental aggressively rolled out in FY2008. 4-5 more new schools (cities) and 40-50 new learning centers are anticipated in FY2009, as New Oriental continues to extend service to China's larger cities. The result will be high potential for stock appreciation. Aiming for the Sky: AirMedia is China's largest digital out-of-home media company focusing on air travel advertising with a network covering 50+ airports and 9 major airlines, with over 2,000 airport screens and the right to display ads on 16,000 airplane screens. The Company has secured most of its partnerships (50%+ for airports and 80%+ for airlines) exclusively, with all but one of concession contracts lasting until 2010. The Company produced $42 million in revenue for FY2007 with staggering growth of 196% to $123 million estimated for FY2008 and further growth of over 40% expected in 2009. The Company's recent net margins are well over 20%, with net profit of over $33 million expected in FY2008. At $5.76 per share as of January 5th, Airmedia currently trades at a minuscule estimated PEG ratio of 0.3x. The Chinese Civil Aviation Administration forecasts air passenger rates will grow 14% annually from 2005 to 2010. For the corresponding period, the total number of commercial aircraft is expected to increase to 1,580 from 863. The Chinese government will also invest $17.4 billion in infrastructure construction, and expects the total number of airports will rise to 180 in 2010 from 142 in 2005. On December 29, 2008, AirMedia's board approved a buyback of up to $50 million of its outstanding American Depositary shares, providing further support to stock price appreciation in 2009. Conclusion: The three companies mentioned above will benefit disproportionately from the positive trends of consumer spending and economic growth in the Chinese economy that cannot be found in the U.S. economy. And since they are all listed on U.S. exchanges, they can be bought just as easily as any other U.S. stock with prospects that are not nearly as bright. The strong economic fundamentals supporting these companies and their attractive valuations ensure little downside risk with plenty of upside potential that simply cannot be found among most U.S. companies. As an investor, it is your job to find investments that have the highest possibility of providing the largest return on investment. As you just learned, US companies are unable to produce the types of returns an emerging growth country like China can. These opportunities are the ones every investor should research and look for when planning their investments. Keep an eye out for future reports from China Research Group! Charles Wang Managing Director China Research Group, Inc.
10 Easy Steps to Succeed in Your Online Classes
Congratulations Youve made up our minds to pursue your upper schooling, and doing so online is how to pass if you have an interest in a versatile, studentcentered educating manner. Studying online permits you to pursue different pursuits and attend to different responsibilities whilst nonetheless operating your method towards some extent. However, it will now and again imply that its clean to get distracted. Here are 10 clean steps to verify luck on your online categories.
- Connect together with your instructors once conceivable.
Even in case you are doing smartly within the category, its extraordinarily vital to increase a rapport together with your trainer. When you do that early on, you temporarily understand what the priorities are within the route, what expectancies the professor has of you and youre going to be motivated to prevail, surer of whats forward and higher ready to do smartly with the impending subject material.
Valuable questions to invite your trainer come with the next
How versatile are you with time limits
How versatile are you with grownup freshmen
What applied sciences do you employ within the route
How to be had are you through e mail and different sorts of verbal exchange
How do you put up an internet neighborhood and what are the expectancies for participation in it
In addition, since instructors are to be had to lend a hand all over the classes, its all the time just right to have had private touch with the trainer early on. This method, when you wish to have lend a hand, its more straightforward to achieve out and get the help you wish to have.
- Confirm the technical necessities of the route.
Online categories can also be very advisable for college kids with busy schedules, however provided that they are able to simply get right of entry to the fabrics. It is vital to obviously perceive what the technical necessities are. So, ahead of the route begins or as quickly thereafter as conceivable, youll want to test that your pc will paintings with the entire online equipment, and that you understand how to navigate them. This will be sure that you dont must spend time all the way through the route attempting to determine the generation.
three. Create a time table and stick with it.
Quality online instructors create classes which might be clean to navigate and feature transparent expectancies. Having that roughly easytodealwith framework in position will make learning and succeeding that a lot more straightforward. However, although the framework and necessities of your category arent as transparent, youll create a time table and construction, which is able to very much fortify your probabilities of luck within the route. Using equipment equivalent to Google Calendar is a good way to start out. Knowing how your weeks and months glance and scheduling blocks of analysis time for each and every activity or module will will let you stick with a time table.
four. Ask questionsall the time.
When you dont perceive, ask questions. When you do perceive, ask additional questions. Instructors recognize scholars who take part, and if theres a participation or dialogue part a part of the grade, then asking high quality questions is helping guarantee your grade on this space. Even if there isnt a participation part, its all the time helpful to invite inquiries to remember to perceive the fabric and are transparent on what is needed of you.
five. Be arrangedand keep arranged.
Students whore taking conventional, campusbased classes most often have a constant time table to observe each and every week, through which study room instruction is adopted through assignments out of doors the category. However, for online classes, scholars will have to search out their very own techniques to stick on most sensible in their paintings. It is crucial that you just be arranged from the start of the semester with the intention to achieve success in an internet route. For instance mark task due dates on your calendar, discover a submitting machine for each online subject material and bodily subject material that is helping you stay monitor of the whole lot simply, and shed light on find out about schedules that duvet sections of the route one by one so youve got an arranged tactic to protecting the semesters subject material as you pass alongside.
- Have a blank, quiet, and constant workspace.
One factor online and inclass classes have in not unusual is that scholars all the time want a spot to review or whole assignments this is blank, quiet, and constant. You can select the place that is for youwhether or not its at a espresso store, a college library, a devoted place of business, or at house. Wherever you select to review and whole assignments, you must make it a constant location that doesnt have out of doors distractions. It is basically key that where is quiet and lets you focal point in your paintings with out distractions.
- Do no longer procrastinate.
Successful distance freshmen hardly procrastinate. They dont do away with assignments or wait till the final second to write down their papers. Successful online scholars experience freedoms that come with operating at their very own tempo and the facility to finish their paintings in as a lot time because it takes them. On the opposite hand, they know that finishing their assignments is best performed early and on time cramming merely doesnt paintings, and it doesnt will let you retain knowledge longterm. Get began early on getting a success.
eight. Work in your studying comprehension.
Successful distance freshmen generally tend to have just right studying comprehension abilities. Most conventional, campusbased scholars concentrate to lectures and take notes, and a few online classes additionally require this. However, the vast majority of distance freshmen are anticipated to grasp subject material thru a large amount of studying. Although far finding out classes be offering video recordings and audio clips, maximum systems require scholars to hide and grasp a considerable amount of written knowledge. If it is a problem for you, it could be very useful to first sign up in a studying comprehension route there are lots of assets online that will help you do that. This ability by myself could make a huge distinction on your luck.
nine. Establish and admire routines that be just right for you.
If, for instance, youre employed best within the morning or in brief bursts, then set find out about routines that can help you find out about within the prelunch hours when your mind is contemporary. If, then again, you do best through learning at evening or at the weekends when youll devote nightowl hours or longer blocks in your learning, then make it some degree to take action. Consider how and whilst you paintings best, and enforce a find out about plan that respects the routines that be just right for you.
- Connect together with your friends.
Establishing sturdy connections with friends and professors is a very powerful facet of tutorial luck, in addition to skilled development. One of essentially the most rewarding reports in schooling is finding out thru collaboration. Forming significant relationships together with your friends and professors can can help you be told extra, keep motivated, and feature an outlet to specific your personal working out of subject material. So, keep attached thru message forums, chat rooms, e mail, and different digital assets. And take note lots of the other people you meet in faculty shall be conceivable process assets down the road so determine connections and keep in contact
Florida National University gives a wealth of tutorial and professional online classes. Check out the entire choicesyour long run is ready
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