Two Exciting Companies in Boring Industries

Remember the Chinese company I just wrote about in this column? It’s called Shengdatech, Inc. (NASDAQ/SDTH) and I think the company will become a great success over the next few years.

The chemical business is often an industry that individual investors ignore; not on purpose mind you, but because most investors want to own something that they’re excited about. Software and technology is often a desired industry for individual investors, but I think it’s wise always to have a few “boring” businesses in your portfolio. Remember, institutional investors love boring businesses as long as they are making money.

When you think of an economy like China’s that’s growing over 10% a year, just imagine the kind of demand this creates for basic infrastructure. And what does infrastructure require, other than big money? How about oil, iron ore, gravel, other precious metals, and all kinds of chemicals?

I still contend that one of the greatest speculative opportunities in the American investing landscape is U.S.-listed China stocks. Their growth is our opportunity.

I recently discovered another company that looks very interesting, and it too is growing by leaps and bounds keeping up with China’s infrastructure needs.

This company is an architectural and engineering firm that specializes in designing and building high-end structural glass wall systems. In most modern buildings, there is a lot of glass to contend with. Often, this glass is for aesthetic purposes and it does require specialized expertise to install it properly.

The company I’m referring to is about to cross the one-hundred- million-dollar mark in annual sales and is planning a major international expansion over the next two years.

I find to odd to say this as a full-time equity analyst, but I’m now excited about the architecture business. I have to admit, I never really considered this sector for investment, largely because there aren’t that many public companies out there. I guess the story is similar to the chemical business. From an investor’s point of view, I suppose it all just comes down to the numbers. Fortunately for these two companies, the numbers are getting big very quickly.