To OTC Journal Members: 

This week's "China Surprise" took the China sector down just a little today. China GDP growth came in at 9.6% for Q3- while that number is far better than the rest of the world, it is the third consecutive quarter of very slight decline. GDP growth is down from about 10%. The interest rate increase, combined with a the lower GDP number, had the whole sector giving 1% to 2% of the October gains back today. After the recent run up, this group is entitled to cool off a bit.

However, my thesis on the strength in the commodities sector remains intact. While 9.6% was lower than last quarter, it was higher than analysts' expectations, and inflation remains a threat. Where do you want to be with your money in an inflationary environment? Commodities of course. I love pork, coal, and bromine, and I'm sticking with them through earnings releases next month. You'll have to sign up at www.emergingchinastocks.com to read about the actual stocks.

Speaking of EmergingChinaStocks.com, we finally rectified the issue of American Express. You can now use AMEX to enroll, so if you were waiting, have at it. I have an edition planned for the weekend on the fictitious and widely exaggerated China housing bubble.
 

A Sneak Peak

As previously announce, I'm going to publish a new China idea over the weekend for OTC Journal subscribers. 

Remember China Electronic Holdings (OTC BB: CEHD)? Back on September 29th when I published my first edition on this idea, the stock closed at $3.25. Today, despite still being thinly traded, CEHD closed at a new all time high of $4.40- a cool 35% in two weeks.

CEHD is making a fortune selling appliances in rural China- I liken it to investing in Sears in 1960. 

CEHD is selling consumers the appliance and electronics going into their homes. So, who's selling them the furniture for their homes?

Stand by for the answer this weekend.
 
 
 
 

Do You Remember EagleFord Energy (OTC BB: EFRDF)? It's Rockin

It was August 26th, 2010. About 7 weeks ago. I wrote a feature piece on Eagle Ford Energy, which you can read by clicking here.

In that original presentation, I suggested junior oil gas exploration stocks traded well after the company started drilling, but before results came out.

Guess what- it took a few weeks, but now the company is drilling. And, guess what- it took a few weeks, but now the stock is absolutely rocking. If you didn't pay attention to this idea, you might want to start now. 

A large Chinese oil and gas concern just bought into the Eagle Ford Shale, and the whole area is absolutely dripping hydrocarbons. 

Eagle Ford Energy traded 447,000 shares today, and closed at $1.68- 34.5% higher than my $1.25 entry level back on August 26th. All of a sudden everyone loves this stock, and you heard it first here.

This is likely just the beginning. I certainly like it for $2.50 where Gar Wood (a boutique institutional research firm out of Chicago forecasts it will go), and possibly higher with the right results. Click Here to read their research report.

Stand by- everything has changed with this one all of a sudden.

Disclosure: I'm long EFRDF

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