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 "As
markets crashed and global corporate giants bit the dust,
this stock rose 1,100%… from US$0.50 to US$6…
since September 11, 2001! And there's more to come!"
You
can't afford to ignore this unfolding opportunity a moment
longer: Now is the time to buy this budding automotive stock
at the bargain-basement price of US$4
Let
me tell you about a company that literally took my breath
away when I first heard about it. It did over US$225 million
in sales in 2001—a 34.8% increase over the previous
year—while its closest competitors all ended up in
the red. If that sounds impressive, how about this: In
the first half of 2002, the company increased its sales
by 97% over the same period last year. And it is set
to repeat the performance in 2003.
Even better, this company’s stock currently trades
at only US$4 a share.
But before my team fills you in on what company I’m
talking about, let me provide a little background information,
so you can place this opportunity in its proper context…
The
China card
On
June 7, 1966, on a singularly hot day in Cape Town, South
Africa, the late Robert F. Kennedy was overheard saying,
“There is a Chinese curse which says, 'May he live
in interesting times."
These days, the phrase has become a staple of quotable Far
Eastern wisdom. But ask native Chinese people about it and
they will shrug their shoulders. That was the reaction I
received from the Taipan Group’s resident China experts,
Howie and Siu-Yee Ng. This particular quote, they tell me,
is just about as Chinese as fortune cookies and egg foo
yung… both of which you’d be hard-pressed to find
in China.
And western notions about Chinese investment markets tend
to be just as ill-conceived. Just over five years ago, I
sat in a meeting with a well-known Canadian specialist on
international investments, listening to him wax poetic about
the prospects of a European supermarket chain setting up
shop in China… expecting to make a mint on getting
the Chinese to switch from lumpy rice and sweet-and-sour
sauce to pasta and Newman’s Sockarooni sauce.
By then, we had already taken triple-digit profits on most
of our China Dragon plays: in the late ’80s and early
’90s, Taipan readers made a fortune on the boom in
Hong Kong—like the 232% profits our readers made when
we told them to buy real-estate developer Tian An, 289%
profits on Hopewell Holdings, and another 271% profits on
Hong Kong & Shanghai Bank. And in 1995, we got Taipan
readers into an American-Chinese joint venture near the
Hong Kong border that gave them 200% profits in just three
weeks!
Then we saw the hype get too hot. In Taipan, we wrote:
“Almost
every day, you hear or read another glittery report about
China’s incredible future. The Wall Street gurus
write dreamily about what will happen when two billion
Chinese open up to the software market… cellular
phones… or modems and computers. But guess what?
We predict that the kinds of wealth explosions everyone
else is promising now will have to take place on the other
side of a crisis. When it happens, you’ll have plenty
of chances to profit.”
Now, my friend, is that time.
But
why get back in? Why now, and what’s changed?
Let
me give you a short rundown of what has happened since!
•
Last
year, while every major economy in the world tanked…
China’s economy grew an incredible 6.9%.
•
As
of December 2002, China’s tech exports had increased
a breathtaking 50%. The World Trade Organization (WTO),
of which China finally became a member in late 2001, sees
a 12% growth rate for China during the coming year. And
20% growth after that!
•
China
is suddenly the world’s largest consumer of cell phones—over
167 million customers. They add another 6 million customers
every year. China’s cell phone market ALONE grows by
25% a year!
•
PC
shipments to China will grow 18% a year through 2006.
•
Germany’s
Volkswagen AG just announced that China now is the single
largest market for VW automobiles… second only to Germany
itself!
Even the conservative Ludwig von Mises Institute pegs China
as the largest world economy by 2011. The IMF sees China’s
economy growing three times faster than the world
growth rate. The BBC called China’s growth a “runaway
success.”
According to the State Development Planning Commission,
China’s GDP will top US$35 trillion in 2020, a per
capita GDP of US$3,000. According to the National Bureau
of Statistics, China is likely to become the third largest
economy in the world by 2020 and the second largest in 2050.
While most global economies were struggling over the last
two years… with former powerhouses Germany and Japan
expected to post less than 1% annualized GDP growth for
2002… China’s economic growth rate actually hit
high gear in the first three quarters of this year. For
2002, growth will be 0.6% points higher than in 2001, reaching
7.9%.
And this growth is not expected to slow anytime soon. The
Economic Forecast Department of the State Information Centre
(SIC) expects GDP to reach 10.217 trillion yuan (US$1.235
trillion) in 2002. China’s exports increased by 19.4%
in the first three quarters of 2002. Its total trade volume
during that period was US$445.1 billion, an 18.3% increase
year-over-year.
“Second
Wave” revolution
Now
don’t get me wrong here. Even with all the good news
in the headlines… even with China in the WTO…
tariff restrictions abolished… more accurate Chinese
accounting… and an exploding middle class… China
isn’t a perfect market.
The economy is plagued by the same debt and strong deflationary
tendencies that have made business life in Japan a living
hell. It’s still got an entrenched, corrupt, and absolutely
opaque Communist bureaucracy. And political problems ranging
from Falun Gong to militant Islamic separatists at the outskirts
of the Red Empire.
But it’s also got a hidden asset no other country—except
possibly India—can claim: you see, over the last 20
years, China sent hundreds of thousands of students
to top universities in over 113 countries worldwide…
Now they’re coming home!
Brain
gain
Biologists
and geneticists. Architects. Technicians. Computer programmers.
Engineers. Add these to over 700,000 engineers already graduating
from Chinese universities this coming year.
By
the end of 2003, China will have the largest pool of entrepreneurs,
engineers, and business experts in Asia! That’s
more than Taiwan. More than Singapore. Even more than Japan.
And unlike their counterparts in the fully industrialized
Asian nations, the burgeoning Chinese middle class is ready
for major consumption. Here’s what this will mean for
investors over the next 12 months…
Imagine picking up shares in every American blue chip stock…
back in 1903!
Jack Welch, the ex-CEO of General Electric, recently said:
“You know, I think China and its impact on the next
century will make what Japan did in the 1970s and 1980s
look like a water pistol.”
Investing in the right China-related shares right now is
almost like investing in the future blockbuster companies
of American industry… way back in 1903!
And that’s exactly the opportunity the Taipan Group’s
resident brain trust has come up with for you this month.
Here’s
Siu-Yee Ng’s report:
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