To OTC Journal Members: 
 

Tuesday: New China Idea Coming, and It's Red Hot Now

Ok- as far as China and the OTC Journal are concerned, here are the facts. I love China as a place to invest your risk/growth capital over the next five years to maximize your returns. Recession, recovery- what ever it is in the US, everything commerce related in China will grow a lot faster over the next five years in China than it will in the US. 

Right now I'm reading the legendary investor Jimmy Rogers book "A Bull in China", and it has some eye opening conclusions. Thanks to Globalization, investors like ourselves can participate in this growth through China companies that trade on US exchanges, and are required to disclose just like US companies.

China stocks are just starting to break out, so we have a number of years to participate, and I intend to keep bringing the ideas. Let's look at how I've done for you so far on my China ideas:
 

There are the facts. Here's what the table tells you. If you had invested $10,000 in each of my China ideas, your $50,000 would have been worth $71,700 at Friday's close. Pretty darn good when you consider 4 of 5 have come since Februray- really since June.

Now, here's where the results can be skewed. There was only one idea pre 2008 crash where everything totally collapsed. If you take out that idea (CGYV), you're $40,000 has turned into $67,700 over a few months.

Taking it one step further- if you had invested more capital based on risk level, you would have had a lot more capital in FXI and UTA- less in the others. That might have skewed your returns to the positive as well. You also could have bought FXI and UTA on margin, which would have doubled your return on cash invested. Another skewing factor- LEGE doubled in the first week, and now is back to break even. If you had made the trade.....

China represents the largest emerging consumer class in the history of the world, and I don't believe Western Investors are quite grasping the shear scope of what's going on over there.

China is transitioning from the greatest manufacturer of cheap goods in the history of the world to a more robust and sustainable model of growth. The country is modernizing very rapidly, and 1.3 billion people- the majority of whom have been rural agriarians for centuries, are transitioning rapidly to the urban, western lifesyle.

Here's a good way to visualize the shear scope of this boom- In the US there are 6 cities with populations of 5 million or more. Guess how many there are in China? I won't keep you in suspense- if you guessed 51, you're right. Nearly 10 times the number in the US.
 

Imagine If

Imagine if you had invested in the gigantic US media companies in the 70's. I'm talking about the likes of Disney, Turner Broadcasting, CBS, Time Warner, etc in the 70's, and allowed your investments to simply grow for the next 30 years. You would have made the kind of fortune that would allow you to retire in style.

Now- take China. There's 10 times the audience with 1/10th the content. The vast majority of citizens have very little in the way of western style possessions, but they are evolving to more prolific consumers. Their income levels in the urban areas have only risen to about $4500 annually, but it's trending much higher. 

Over the next 20 years China is going to gobble up a very high percentage of the world's resources to built out its cities, bridges, roads, internet and wireless networks, and all the other components of a modern society.

There's a company in China that has access to 650 million consumers through its media outlets. It's trading at 1/10th its former valuation, and building a model that mimics one of the most successful growth stories in the history of US Broadcasting. 

The stock has been red hot of late, and is charging up the charts. However, I'm not worried. This is just the very beginning of a multi year move that will have the normal ups and downs on the way to a possible 10 fold return.

I won't give you any more hints beyond saying stayed tuned for this new idea post close on Tuesday. I absolutely love it, and fully expect it to meet the high return standards I'm setting in China ideas.
 

Options Media (OTC BB: OPMG) News

A quick note for you followers of Options Media (OPMG)- on Friday after the close, Options Media announced the development and deployment of a new software platform for their large ESP (email service provider) clients.

The announcement in and of itself isn't a barn burner, but I believe there could be some news concerning who's actually using this platform, and it might be rather eye opening. Stand by. Click Here to read Friday's news. 

Home Page : www.otcjournal.com
Email Questions or Comments To: editor@otcjournal.com