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When you think about the 1990s tech and Internet boom here in the United States, companies like Cisco, Microsoft, Oracle, Yahoo and eBay come to mind. Despite the Internet bust of 2000, these great companies have grown and matured. But their share prices have come back down to earth. They are no longer the high flyers they used to be.
With Google’s ascent toward $600, many investors quickly forget that even if they missed the boat on this play, there are other foreign market opportunities that trade on the indices here in the U.S.
But the boom isn't over. Today, people all over the world are racing to catch up, especially in countries such as China and India. The future global players are just itching to break out -- and that means big profits if you get in now.
Just take a look at China’s largest Internet portal, Sina. Since August of last year, shares have climbed around $20 to a recent peak at $47. More impressively are the returns investors have seen in Baidu, China’s leading search engine. Shares of this company have doubled in value this year, rocketing from $100 in late April to roughly $200 today.
One area of concern for the average investor stems from the fact that as each day passes, these stocks become more expensive and proves difficult to accumulate a large block of shares.
Well, dear reader, I have the answer.
In my research, I recently stumbled across a small-cap Internet portal and online gaming company based in Hong Kong, which trades for a little over $8 per share. Over the past 10 months, this Chinese dragon has soared from roughly $4.50.
As a master technician and fundamentals expert I have never seen a company more ready to double its shares inside of six months. In the coming quarters, there are a few catalysts for the online gaming industry. In addition to roughly 74% growth in China for this market, the number of gamers is projected to double in just four years, to approximately 71.9 million. Furthermore, excitement will only grow with the Summer Olympics being held in Beijing in August of 2008.
Personally, I look for what I like to call “zombie stocks.” They are plays that the Wall Street crowd left for dead. After a big move, they drift along sideways and collect momentum. Most investors become bored and liquidate their shares while the institutional ones are more than happy to buy them back.
Finally, something happens -- the stock suddenly awakens and comes back to life.
That’s when we jump in. And the timing couldn’t be more perfect. This scenario is occurring right now with the play I mentioned above. The stars have aligned on this one, but the time to get in at a rock-bottom price is running out. At these levels, fund managers are throwing money at this stock. Before long it’ll be too hot to touch.
Over the years these plays have shown readers returns unheard of anywhere else. And I’d like to extend the offer to you to test me out. Try a few of my plays and put the bull’s-eye on my forehead. I’m 100% confident in this system.
You can find all of my “zombie stock” research and investment ideas here
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