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The Summer Snore Fest

What Dog Days of August? This year, it's the Canine Days of July. And, the market is barely barking. At present, this market is one major snore fest.

I'm on vacation with the family in beautiful Central Oregon, and I'm not missing much. This market is one giant, low volume snore fest. The DOW goes up 150 one day, then down 150 the next. It's just a whole lot of nothing. A little visit to the heart of America is just what the doctor ordered. We are very lucky to live in this beautiful country.

I'm looking forward to the first two weeks of August when we'll see all the quarterly reports from the China followings, which I believe will just confirm growth and profits. Most of the companies on my list are going to report blockbuster numbers, and sooner or later the market will stop pricing these stocks for a worst case scenario, and start pricing for the largest emerging consumer class in the history of the world.

So, while we're sitting through the previews and waiting for the movie to start, one really good piece of news did pop up today that's worth sharing. 

There were two must owns on my Top 10 list for the inevitable rebound in China stocks. The top 2 were China Media Express (NASDAQ: CCME), and Longwei Petroleum (OTC BB: LPIH). Longwei dished today.

LPIH announced a symbol change- On July 22 (tomorrow if you're keeping track), Longwei will make the jump from the Bulletin Board to the newly annointed NYSE AMEX, and begin trading under the symbol LPH.

This company made $22 million last year. This year I have them $.5 billion in revenues and about $75 million in net profits- somewhere in the range of $.75 in EPS. I liken this company to investing in Chevron or Texaco in the early '60s when they processed and delivered gasoline to a network of gas stations before moving into exploration and development.

This, in conjunction with the recent finding by the International Energy Agency's recent finding that China has now officially surpassed the US as the largest consumer of energy. China will eventually surpass the US in every economic category.

LPIH becomes LPH tomorrow. The stock is surging into the $2.30 range, up 5% on about 1 million shares of volume today. If the stock comes back down, pile in while it remains cheap. 

Disclosure: I'm long this one, and staying long. 

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