company at the bottom of its trend after it was
brought down by the continued bloodshed in the
region. Having bought in around US$10 a share, we
watched as BSI trekked north of US$12 and issued a
sell on the morning of January 13, 2004.        You had to be a shareholder of record at the
close of business on January 12 to be eligible for the
dividend. And it’s not like we were going to sit and
wait for the profit takers to destroy our hard-earned 30% gains. So we took it and ran. But that’s not where the profit opportunity ends... Still convinced of future profits        Allowing us to buy in on the dip was BSI’s news
of a quarterly net loss versus year-ago profits,
caused by recession risks and an increase in compe-
tition. Though the company reported a net loss of
US$3.9 million or 10 cents per share, any good news
for Israel’s economy could bolster BSI’s future and
fatten shareholder pockets.        At least, that’s what we’re hoping for.
       We think there is still plenty of room for growth,
especially since Israel’s economy is expected to
grow at a 2% to 3% clip this year after expanding
only 1.2% in 2003. That, coupled with news of a pos-
sible increase in tourism and the hope of more divi-
dend payouts, has made believers out of us.        With that in mind, buy shares of Blue Square
Israel (BSI:NYSE) on dips under US$11. Plan to hold
for the long haul. Contact: 2 Ha’Amal Street, Rosh
Ha’Ayin, Israel 48092, tel. 888-572-4698, or visit
www.coop.co.il/en/index.asp. n        Investing in China is starting
to worry me. Let me tell you
why. A Chinese online travel
company, Ctrip.com International
(CTRP:NASDAQ), debuted on
December 9, 2003, at US$18.00.
According to the SEC filing,
CTRIP only recorded US$12.1
million in sales in 2002. But
because it was China-related, the
company bagged an US$18 offer
price. It opened at US$24.01 and since then hit a 52-week high of US$43.05. And this is
a company with no profits.        It sounds to me as if investors are chasing these
Chinese stocks like they did tech stocks during the
bubble…   without really realizing the risk involved. For
the short term, I see this trend continuing. I expect to
see more Chinese IPO’s, but investors will need to do
their due diligence in sifting through these stocks.        I don’t see this bubble bursting anytime soon.
After all, China does offer huge investment opportuni-
ties. It’s all about getting in on the ground floor in
those companies that will survive any shakeout. One area that has China worried is its oil supply. You see, as the Chinese economy improves, oil con-
sumption will increase. As a matter of fact, China has
become the second largest petroleum guzzler in the
world.        How can investors capitalize on China’s thirst for
oil? Buying black gold China saw a 30% increase in oil imports in the first ten months of 2003 compared to the same period in
2002. By 2010, China is expected to import four mil-
lion barrels a day. By 2030, China could be importing
10 million barrels a day (about what the US brings in
now).        Not surprisingly, oil companies around the world
are looking to secure market shares with China. And
China is scouring the globe in search of oil fields to
develop. China is very late in the game in regard
to investing in its own and international oil drilling
projects.        Most of China’s oil production capacity is onshore,
around 90%. And most of this oil production is from
one oil field, the Daqing Field in Northeastern China.
This field began production in 1963, but production is
beginning to decline as the field matures. The second 8 Next TAIPAN Siu-Yee Ng Fat profits from oil-thirsty China