Today I'd like to bring you the second in our ongoing series of reports from Wayne Mulligan, editor of Tech Stock Investor.
In our last issue, Wayne-one of the premier technology analysts on Wall Street-explained how the "Wireless Wave" is about to deliver some exceptional profit opportunities.
Below, Wayne gives you his analysis of the market and tells you precisely how you can take advantage of this remarkable opportunity.
Enjoy . . .
Publisher, Quantum Investor
Forget Wall Street . . . The "Great Wall" Is Where the Money Is
Just the other day I talked to you a bit about the Wireless Wave-the mega-trend taking shape in wireless technologies and services. Today I'd like to get a bit more specific.
Actually, I'm going to give you a little treat today.
What I'd like to do is give you "tradable advice"-meaning I'm going to share a couple of investment ideas that you can use right this very minute . . . if you choose to begin making investments in one of the hottest markets in the world.
The Wireless Wave is leaving no country untouched. It's sweeping across the globe as you're reading this.
It seems like every day I open the paper or my email inbox and find a new company, product or service hoping to profit from a new wireless venture.
And there is not single place on the planet where the Wireless Wave is more evident than in the LARGEST wireless market on the planet-China!
That's right, China. A place where I've had the distinct pleasure of living and studying for a number of years.
FORGET "WALL STREET"-THE "GREAT WALL" IS WHERE THE MONEY IS
From the time I was very young, I've always had a deep interest in China's history and its culture. Don't ask me why, but it was something I was always very passionate about.
Luckily for me, the country waited until I was old enough to really profit from it before truly making its debut on the world economic stage.
Several years ago I began to see the writing on the wall. China was entering the World Trade Organization and establishing a new bilateral trade agreement with the US. The global economy was heating up, and I smelled opportunity in the air.
So I began to delve deeper into my studies of Chinese history, culture, economics and the language-all very important if you hope to navigate the complex business network in China.
I actually had the opportunity to study under some of the top linguists and Chinese economists at Columbia University here in New York, where I pursued my degree in East Asian Studies and Chinese Economics.
It was at Columbia that I learned how to speak, read and write Chinese.
With that knowledge in hand, I decided that I would go live in China for a while-and let's just say that my time there was priceless!
I traveled to different provinces and regions and cultivated a number of business relationships inside and outside the technology sectors.
These "relationships" are actually a formal business practice in China called "guan xi" (pronounced "gwan-shee," the rough translation is connections or relationships). And that's how business gets done in the Middle Kingdom: through networks of friends and family.
These relationships have helped me develop a better understanding of the economic climate within the country and, more importantly, how to profit from it!
CAN YOU SAY "EASY MONEY" IN CHINESE?
Just to put China's technology industry in perspective, let's break it down by the numbers.
China currently has over 400 million wireless subscribers-that's DOUBLE the number we have here in the US. And, in a country of 1.3 billion people, there's still plenty of room for growth.
As a matter of fact, China has more mobile phone subscribers than it does land-line subscribers. This country is truly laying the foundation for one of the best developed and most highly used mobile networks in the world.
And the growth and innovation in technology doesn't stop with wireless. The country currently has 123 million Internet subscribers, up about 20% from only a year ago!
This means China is projected to have the largest Internet population in the world by 2008-surpassing that of the US.
There are dozens of Chinese Internet and technology companies currently listed on American exchanges, and some of them have shown spectacular returns over the last 12 months. For instance, I wrote about China Mobile (CHL:NYSE) in my Tycoon Report article of January 4, 2006. Take a moment to read it . . .
The stock was up 26% in a less than four months! Not bad for a quick trade.
And it's not just companies based in China that stand to benefit from the country's booming economy. There are a number of American companies that are heavily invested in the region and can show us some serious returns in the future.
Google (GOOG:NASDAQ) recently launched its own China Search service in order to compete with China's homegrown Baidu.com (BIDU:NASDAQ) service.
eBay (EBAY:NASDAQ) and Yahoo (YHOO:NASDAQ) have both invested heavily in Chinese auction sites EachNet and TaoBao, respectively. You should definitely check out my July 19th article on both of these companies . . .
CHINA IS AN AREA I'LL BE LOOKING AT CLOSELY FOR INVESTMENT
OPPORTUNITIES, FOR A NUMBER OF REASONS:
For one thing, there's less competition. Not that many retail investors have access to good information on the subject. This makes it much easier for us to get in before these stocks run. And that means more profits for you!
Not only that, but I also have a wide network of contacts in the region. This has definitely helped in terms of conducting market research and gauging demand for certain products and services.
And what that really means for you is a great source of information and investing ideas in one of the hottest technology markets on earth!
That's what "profiting with an insider" is really all about.
As far as I'm concerned, when we take one of the hottest sectors in the world (technology) and combine it with one of the fastest growing markets (China), we have the makings of some serious profit opportunities.
But only if you know exactly what to look for or have the right person holding your hand along the way.
Chief Investment Officer
Tech Stock Insider