A Simple Concept
Most stock market investors miss substantial profit opportunities because they don't understand the one simple concept that rules today's investment world. Investors need to recognize:
Today's Headlines are Yesterday's News!!!!!
Here's what I mean. The market is a forward looking animal. Stock prices move based on investor perception of the future. The big money investors are betting on tomorrow's headlines when they put capital to work today.
If you want to make superior returns in the market, you have to identify the future news-makers, and take your positions before the market recognizes an undervalued situation with both top line growth and accelerating profits.
Have you ever watched a stock trade up in front of a fantastic earnings release, only to watch it sell off after the initial surge up? It's because the smart money was positioned ahead of the news, and opportunistic traders took their profits at the expense of longer term investors. Those "buyers on the news" didn't understand the earnings were already priced in. Today's Headlines Were Yesterday's News. A great earnings release can often be a sign post on the way much higher levels, but smart investors know how to wait for the hot money to exit in order to accumulate at favorable, high percentage entry levels.
The other important component for investing success is a clear understanding of the macro environment. This is especially true of the boom and bust cycles in the China market. When China stocks are in favor, there's no ceiling to the heights they can reach. However, when this group is out of favor, there seems to be no floor to pricing. In the 2008 stock market disaster, the small cap China stocks with tremendous growth in sales a profits traded into the 3 to 4 PE range, many with growth rates of 50% and higher. Investors with the courage to accumulate at the bottom made fortunes as the stocks turned up.
In the 2010 downturn, small cap China growth stocks have traded down to PE levels of about 5, and we are waiting for them to turn back up. When they boom again, you want to be positioned in the best companies. We all have limited capital, so we have to be very selective in order to maximize our return.
Our main mission is to present to you, the subscriber and investor, the best small cap growth stocks in China that trade with US Listings. In order for us to make a lot of money together, we're going to have to find the great growth companies of China- not just the good ones.
You also have to learn about these companies and get the opportunity to position yourself before Tomorrow's Headlines Become Yesterday's News. You have to be positioned to be a seller into tomorrow's headlines- not a buyer.
There will be times when it's important to understand the macro side of China stocks as well. There are times when it will make sense to have at least half your investable capital in cash while we wait for a correction to run its course. Will tell you when it's time to get out, and tell you when it's time to go all in.
Over the next decade the China sector offers the opportunity for one of the greatest bull runs in history. The tech bubble of the 1990's could pale in comparison to the upside offered by the largest emerging consumer class in the history of the world.
Our team will uncover the ideas that could make you wealthy beyond your wildest expectations. Here they are:
At 57 years of age, Larry Isen has seen it all and done it all in the small cap world. He's been an investor for 23 years, a small cap stock broker for 7 years, and the publisher and editor of the OTC Journal for the past 11 years- an online microcap investment newsletter.
Mr. Isen has been intimately involved in China stocks for the past 3 years, and has developed a vast information resource network of Investment Bankers, Merchant Bankers, Institutional Money Managers, and IR Firms.
Our team has an on-the-ground resource network in China. We have the services of a Merchant Banking Firm boasting over 40 China based investment professionals with offices in Hong Kong, Shanghai, Dalian, Chendu, Xiamen, Danyan, and Shenzhen. This grouping of professionals is available to the Emerging China Stocks Newsletter 24/7 to perform any due diligence on the stocks we cover.
The Emerging China Stocks Newsletter scours our network to come up with the best ideas in the small cap China sector, filters out the best 8 to 10 stocks, then provides ongoing coverage and changes to the portfolio as required.
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