Tag: china

NetEase (NTES): China’s Expanding Internet

Filed in Bank Gold, o, revenue, shares, Yahoo by on February 8, 2011 0 Comments
NetEase (NTES): China’s Expanding Internet

Filed under: International Markets , China , Newsletters , Stocks to Buy “NetEase ( NTES ) fits right into the theme of rapidly expanding Internet revenues and profits in China,” says Jim Trippon . The editor of the China Stock Digest explains, “At least 450 million Chinese are now online. Online gaming has 265 million users and is expected to gross over $4 billion over the past year. “This company has a wide offering of products, even though it is mostly known to western investors as a gaming platform. In fact, NetEase falls into all of the major categories of web revenue generation with significant ad sales, a home page service similar to Yahoo, email, search and a new online B2C (business to consumer) shopping presence. Continue reading NetEase (NTES): China’s Expanding Internet NetEase (NTES): China’s Expanding Internet originally appeared on BloggingStocks on Tue, 08 Feb 2011 13:00:00 EST. Please see our terms for use of feeds . Permalink | Email this | Comments

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An Egyptian Firebrand Away from $400 Oil

Investors are remarkably sanguine about the events in Tunisia and Egypt… Oil actually fell yesterday to $88.27. The Dow has been on a hot streak and is up again today — as it has been for months — to 12,149. History suggests events in the Middle East go from bad to worse. According to the Democracy Index put out by The Economist , there are no “established democracies” in the region. Israel is listed as a “flawed democracy.” Lebanon and Turkey were listed as “hybrid regime,” along with Palestinian territories, Pakistan, Armenia, and Iraq (Lebanon is now run by Hezbollah). The rest are categorized as “authoritarian regimes.” The last free vote saw Hamas sweep the Palestinian elections in 2006. Hamas started as an offshoot of the Muslim Brotherhood in Egypt. On gaining power, they started lobbing rockets into Israel. In 2007, the Battle of Gaza was fought between Hamas and the Palestinian security forces. Hamas is listed as a terrorist organization in most G-20 countries. In the aftermath, Israel and a Hosni Mubarak-ruled Egypt imposed an economic blockade on Gaza that is still in effect. Population and scarcity Jack Andrew Goldstone points out in his book, Revolution and Rebellion in the Early Modern World , that all revolutions from the French to the Russian, from China to Japan, occur where there is a rising population and diminishing resources coupled with an inflexible ruling party. (Note: The population in Russian doubled between 1850 and 1913.) Today, the Arab world has the fastest growing population on earth— and the youngest. In Yemen, the average age is 17.9 years with a birth replacement rate of 2.71, which puts it at number 23 in the world. The United Arab Emirates is in fourth place with 3.56, Kuwait is fifth with 3.50, the Gaza strip is six with 3.29. Libya, Chad, Egypt, Oman, Syria, and Iraq all make the top quintile. These young people will be the next rulers of the largest oil-producing region within the next ten years — mostly because all of the current leaders are in their 80s… with the exception of Qaddafi…

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The WSJ’s Most Controversial Article… Ever

Filed in BP, CBS, democrats, economy, euro, Gold, GOld juniors, Gold Market, o, Warren Buffett, yuan by on February 2, 2011 0 Comments
The WSJ’s Most Controversial Article… Ever

On January 9th, The Wall Street Journal ran an article that would become the most viewed, commented-on editorial in the publication’s history. The article was so controversial that the author — a Yale Law School professor — received several death threats. Thousands of enraged American readers went so far as to accuse her of advocating physical and emotional violence against children… Meet Amy Chua: a petite, 48-year-old Chinese American and the author of the WSJ firestorm piece, “Why Chinese Mothers are Superior”. Obviously, the headline caught my attention. My wife is Chinese and we have three children. But what really surprised me was the viciousness of the comments from readers. But as I perused through the comments of anger, hate, and even threats to Chua, I realized I as was actually reading comments of insecurity, fear, and envy. Think about it… Had this article been written by anybody other than a Chinese professor, it would’ve gone largely unnoticed. Bottom line: Americans fear the Chinese juggernaut. Here are just a few headlines from the past year that have caused panic among Americans and the West: Pentagon Surprised, Concerned as China Debuts High-Tech Weapons — Politics Daily Chinese ‘Carrier-Killer’ Missile Could Reshape Sea Combat — Fox News Chinese ‘carrier-killer’ missile raises concerns of Pacific power shift — Associated Press China Stealth Fighter? Photos Released Online Raise Speculations — Huffington Post China’s First Stealth Fighter Test Successful — CBS News China backs Spain to emerge from crisis: Beijing — Sydney Morning Herald Move Over Europe, China Is Pushing to Bailout the Greek Economy — Washington Post Wow: China to Bail Out Europe? — Daily Mail UK China’s Pres. Hu calls dollar’s preeminence ‘thing of the past’ — Wall Street Journal President Hu provoking the US by suggesting yuan replace dollar as reserve currency — AsiaNews.it And now Americans are fearful of the Chinese mother, as reported by Time Magazine: “Tiger Mom: Amy Chua Parenting Memoir Raises American Fears.” I hear it every day… “China is going to overtake the U.S. economy… We need to catch up before they flood our markets with electric cars, wind turbines, and …

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China’s Housing Bubble Begins to Top

Filed in BP, citigroup, economy, Gold, GOld juniors, Gold Market, housing-market, Lear, o, target by on February 1, 2011 0 Comments
China’s Housing Bubble Begins to Top

Round and round she goes, where she stops nobody knows…. From Bloomberg entitled: China’s Housing Market Nears U.S., Japan Bubble Levels: Chart of the Day “ China’s property market may be heading into a bubble as the economy’s reliance on real estate reaches a level close to the housing peaks in the U.S. and Japan, according to Citigroup Inc. The CHART OF THE DAY shows investment in residential property accounted for 6.1 percent of China’s gross domestic product last year, the same level as the record in the U.S. in 2005 that was followed by the subprime crisis, said Shen Minggao, Citigroup’s China research head. It’s also about 2 percentage points away from Japan’s 1970s housing boom, he said. “ China’s property market is entering into a bubble stage,” Shen said in a phone interview. “It’s evident that property prices are no longer sustainable once the residential investments achieve above 8 percent of nominal GDP, and China may not be an exception.” A 10 percent drop in China’s property investment translates to a 1 percentage point decline in nominal GDP, Shen said. Adding investments indirectly related to the real estate industry, nominal GDP will fall 2 percentage points to 2.5 percentage points, he said China’s property prices rose for 19th month in December, climbing 6.4 percent from a year earlier. The government last week increased the minimum down-payment for second

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Why Paul Krugman Is Wrong on the Austrians

The Austrians on Capital In contrast to mainstream macro models, which either do not possess capital at all or at best denote it as a homogenous stock of size “K,” Austrian theory explicitly treats the capital structure of the economy as a complex assortment of different tools, equipment, machinery, inventories, and other goods in process. Much of the Austrian perspective is dependent on this rich view of the economy’s capital structure, and mainstream economists miss out on many of the Austrian insights when they make the “convenient” assumption that the economy has one good. (Krugman will be glad to know that yes, I can spell all this out in a formal model — and one that referee Paul Samuelson grudgingly signed off on.) Krugman and other Keynesians stress the primacy of demand: they keep pointing out that the owner of an electronics store, say, won’t have the incentive to hire more workers, and buy more inventory, if he doesn’t expect consumers will show up with money to spend on new TVs or laptops. But Austrians point out that demand per se is hardly the whole story: Regardless of how many green pieces of paper the customers have, or how much credit the store can get from the bank, it will be physically impossible for the electronics store to fill the shelves with new TVs and laptops unless the manufacturers of those items have already produced them. And in turn, the manufacturers can’t magically create TVs and laptops merely because the demand for their products picks up; they rely on other sectors in the economy having done the prior preparation as well, such as mining the necessary metals, assembling the proper amount of tractor trailers needed to ship the goods from the factory, and so on. These observations may strike some as trivial, not worthy of the consideration of serious economists. But that’s only because normally, a market economy “spontaneously” solves this tremendous coordination problem through prices and the corresponding signals of profit and loss. If someone had to centrally plan an entire economy from scratch, there would be all sorts of bottlenecks and waste — as actual experience has shown. Without the guidance of market prices, we wouldn’t observe a smoothly functioning economy, where natural resources move down the chain of production — from mining to processing to manufacturing to wholesale to retail — as neatly depicted in macro textbooks. Instead, we would see a chaotic muddle where the various interlocking processes didn’t dovetail. There would be too many hammers and not enough nails, too much perishable food and not enough refrigerated railroad cars to deliver it, and so on. The Austrians on Interest When it comes to explaining the coordinating function of market prices, Austrians assign a very important role to interest rates, for they steer …

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FBR Capital Reiterates “Outperform” Rating on Peabody Energy (BTU)

Coal producer Peabody Energy Corporation ( BTU ) on Monday saw its “Outperform” rating reiterated by analysts at FBR Capital Markets. The firm also backed its $77 price target on BTU, which implies a 32% upside to the stock’s Friday closing price of $58.17. An FBR analyst commented, “The [coal] sector has declined off the top and is poised to react less to negative news and, hopefully, more favorably to positive news. BTU has lagged its U.S. and Australian peers by about 10%–15% for the one-, three-, and six-month periods, in part from 4Q10′s and 1Q11′s Australian flood impact and acquisition worries. We believe shares already discount the news and are now a bargain in front of several expected catalysts: (1) Australian production recovery, (2) West Coast port announcement, (3) formal sanctioning of Australia Millennium mine, (4) trading group upside with rising price volatility ($5/share value), (5) Mongolia optionality, (6) China project values becoming better understood, (7) acquisition risk overstated, with an outstanding track record.” Continuing, “While 2011 estimates may initially be reset due to 1Q11′s Australian supply issues, we believe estimates will be walked up over the rest of the year from rising prices, faster supply recovery, trading activity, and use of free cash flow.” Peabody Energy shares fell 25 cents, or -0.4%, in premarket trading Monday. The company is slated to reported its fourth quarter earnings results on Tuesday. The Bottom Line Shares of Peabody Energy ( BTU ) have a .58% dividend yield, based on last night’s closing stock price of $58.17. The stock has technical support in the $54-$56 price area. If the shares can firm up, we see overhead resistance around the $62-$65 price levels. Peabody Energy Corporation ( BTU ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars. Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

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China Signs a Deal to Buy Soybeans from U.S. Companies

Filed in New Gold, o, Spot Gold by on January 21, 2011 0 Comments
China Signs a Deal to Buy Soybeans from U.S. Companies

Filed under: China , Archer-Daniels-Midland (ADM) , Agriculture , Bunge Ltd. (BG) Chinese Vice Minister of Commerce, Wang Chao, led a business delegation that signed agreements with grain companies to buy just over 3 million tons of soybeans from the U.S., Reuters reported . The U.S. trading companies involved in the $1.8 billion deal are Cargill, Archer Daniels Midland ( ADM ) and Bunge ( BG ). No details about price and delivery were given. When dealing with state-run companies, there is a protocol that must be followed. In this case, a government official, Chao, was present to sign off the deal with the two state-run grain companies allowed to import agricultural products into China. Continue reading China Signs a Deal to Buy Soybeans from U.S. Companies China Signs a Deal to Buy Soybeans from U.S. Companies originally appeared on BloggingStocks on Fri, 21 Jan 2011 11:00:00 EST. Please see our terms for use of feeds . Permalink | Email this | Comments

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China MediaExpress (CCME) Inks Three Long-term Agreements, Expanding Advertising Network

Filed in BP, Gold Investing, Gold Prices, o by on January 14, 2011 0 Comments

China MediaExpress Holdings Inc. (“CME”), the largest television advertising operator on inter-city and airport express buses in China, yesterday announced the signing of three new long-term agreements with unnamed media companies, which will add a total of 774 express buses to its network. “These new contracts have further expanded our airport express bus network which now

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[Video] Bloomberg: Behold China’s Nearly Empty Mega Mall

Filed in BP, Gold Investing, Gold Prices, o by on January 14, 2011 0 Comments

China is taking Field of Dreams to a new level. Build it and they will come. Someday. Maybe. With the majority of the country in relative poverty, but China needing to employ people to keep their economic miracle going and socia…

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Top Picks 2011: Longwei Petroleum (LPH)

Filed in Bank Gold, lead, o by on January 6, 2011 0 Comments
Top Picks 2011: Longwei Petroleum (LPH)

Filed under: China , Newsletters , Stocks to Buy , Best Stocks for 2011 This post is one in a series in which more than 60 newsletter advisors share their Top Stock Picks for 2011 . This special report is courtesy of TheStockAdvisors.com . “Longwei Petroleum Investment Holdings Ltd. ( LPH ) is one of the leading diesel, gasoline, fuel oil and solvent oil distributors and wholesalers in Shanxi Province, China (near Beijing),” says Jim Trippon . The editor of the China Stock Digest explains, “”The company sells its products mainly to large-scale gas stations, coal plants and power supply companies, and on a smaller scale to small, independent gas stations. Continue reading Top Picks 2011: Longwei Petroleum (LPH) Top Picks 2011: Longwei Petroleum (LPH) originally appeared on BloggingStocks on Thu, 06 Jan 2011 13:00:00 EST. Please see our terms for use of feeds . Permalink | Email this | Comments

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Reversal of Fortune

Filed in BP, euro, Gold, Gold Market, lead, o, target by on January 5, 2011 0 Comments
Reversal of Fortune

You know we just don’t recognize the most significant moments of our lives while they’re happening. Back then I thought, well, there’ll be other days. I didn’t realize that that was the only day. — Archibald “Moonlight” Graham, Field of Dreams “Watch out young fella, it’s always the second person who gets hit,” said Junior, an old, grizzled, barrel-bellied Texas wildcatter who now spent his days recounting his legendary successes and failures at the only gas station in the town of Desdemona (which also doubled as the town’s only restaurant). “Huh?” I was bewildered. “Rattlesnakes, son. These fields are crawling with rattlers… some of the biggest in the state. As long as your body,” he said. He was right. I looked on the wall inside the restaurant, and there was an old picture — looked to be from the 1970s — of Junior holding up a dead rattle snake, easily six feet long. He continued, “Just remember, if you come across a rattler, the first guy usually startles the snake… And by the time it’s ready to strike, the lucky bastard is already out of range. But when the second poor son of a bitch comes along, the snake is ready for Freddie. Bang!” I nodded and thanked Junior for the inside tip. It was July 2005 in Desdemona, Texas, the southernmost tip of the Barnett Shale. I came with a group of investors looking to buy some parcels that hadn’t been snapped up by the biggies like XTO and Devon. Land in the Barnett was still relatively cheap, especially on…

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Top Picks 2011: ProShares UltraShort Yen (YCS)

Filed in Bank Gold, currencies, Debt, o, shares, Yen by on January 4, 2011 0 Comments
Top Picks 2011: ProShares UltraShort Yen (YCS)

Filed under: International Markets , Newsletters , ETF Investing , Japan , Currency , Best Stocks for 2011 This post is one in a series in which more than 60 newsletter advisors share their Top Stock Picks for 2011 . This special report is courtesy of TheStockAdvisors.com . “Bloomberg recently reported that China has recorded two straight months of reducing its holdings of Japanese debt; t.his suggests that the Japanese yen has reached the point where it’s become too ‘strong’ for its own good — or at least for China’s taste,” says global stock specialist Keith Fitz-Gerald . The editor of The New China Trader explains, “Considering China has become the world’s de facto financier, we’d be wise to pay attention. Continue reading Top Picks 2011: ProShares UltraShort Yen (YCS) Top Picks 2011: ProShares UltraShort Yen (YCS) originally appeared on BloggingStocks on Tue, 04 Jan 2011 10:40:00 EST. Please see our terms for use of feeds . Permalink | Email this | Comments

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