There are still a lot of great new China stocks listing on American stock exchanges these days. In my view, they continue to be the most attractive investment opportunities the stock market has to offer. This is, of course, if you can handle the risk.
I recently discovered two new Chinese companies that look poised to experience significant growth over the next several years.
One company is called China Fire & Security Group, Inc. (NASDAQ/CFSG). It hopes to become a consolidator in China’s fragmented market for fire and safety products. Think of all the construction and mining going on in China and consider the size of the opportunity for this business.
China Fire & Security Group operates through its wholly owned subsidiaries, Sureland Industrial Fire Safety Limited and Sureland Industrial Fire Equipment (Beijing) Limited. Headquartered in Beijing with over 30 sales and project offices throughout China, the company’s Sureland division markets its industrial fire safety products primarily to large companies in the iron, steel, power and petrochemical industries in China. The company’s business plan is to expand its customer base to the transportation, wine and tobacco, shipping, nuclear energy, and public markets.
In its latest second quarter, China Fire & Security Group’s revenues grew to a record eleven and a half million dollars, representing growth of 38% over revenues generated in the second quarter 2006. GAAP net income was $4.2 million in the second quarter of 2007, representing growth of 17% over the second quarter of 2006.
Another Chinese company that looks very interesting right now is Fushi International, Inc. (OTCBB/FSIN). This company just got permission to list its shares for trading on the NASDAQ.
Fushi manufactures bimetallic composite wire products. The company’s core product is copper clad aluminum wires that combine the conductivity and corrosion resistance of copper with the light weight of aluminum. According to Fushi, its copper-clad aluminum wires are a cost-effective substitute for single copper wire, and can be used in a variety of applications such as coaxial cable for cable television (CATV), signal transmission lines for telecommunication networks, distribution lines for electricity, electrical transformers, and wire components for electronic instruments and devices.
In its latest quarter, Fushi’s revenues grew 42% to more than twenty-six million dollars.
If you want to be a growth stock speculator in this market, you have to consider investing in some Chinese companies. Think about the burgeoning Chinese economy and consider the fact that its Westernization is still at an early stage of development. Over the next decade, there’s no reason why American investors can’t get rich speculating in China stocks.