Important Updates for Investors
Carla Pasternak's Premiere Issue of High-Yield International Just
Released
Income expert Carla Pasternak's debut issue of High-Yield
International covers a Taiwanese manufacturer yielding 9.5%... a
rare Mexican monopoly yielding 13.4%... and other top-performing
investments yielding up to 19.0%.
Government's Biofuel Timetable Could Spell +15,900% Growth
+15,900% growth might seem far-fetched... but it's not. In fact, it
is mandated by law. And I've identified the ONLY stock positioned to
capture this growth.
The
Silver Lining to a Falling Dollar
Despite the U.S. national debt, there is a silver lining for income
investors. This massive spending, combined with movement out of U.S.
Treasuries, is going to take its toll on the dollar, and
international income investors could reap the rewards in the form of
higher dividends. |
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A Chinese Telecom Giant Poised
for Further Growth |
[http://www.streetauthority.com/includes/article-top-ma.htm]Published:
April 6, 2009
China Mobile
(NYSE: CHL) is the largest wireless telecommunications provider
in China with a roughly 70% market share. The company serves
more than 440 million customers with wireless and wireless data
services.
Catalyst(s): As noted earlier, China's mobile
phone penetration is only around 40%, less than half the 85% to
120% penetration rates common in the western world. And Chinese
mobile phone distribution is uneven -- in rural areas, less than
a quarter of residents have mobile phones.
There are a few reasons to expect mobile penetration rates to
grow. First, increasingly, rural consumers are moving to cities
to take on higher paying manufacturing jobs; as consumers
migrate to cities they're far more likely to buy mobile phones.
Even better, a large share of the Chinese government's economic
stimulus package is directed at encouraging rural development;
the government would like to bring rural incomes up to levels
more in-line with what's prevalent in urban areas. This should
help encourage more Chinese consumers in small cities and rural
areas to buy mobile phones.
Finally, less than one-quarter of CHL's subscriber base is
signed up for high-speed third generation (3G) mobile data
services. CHL is well-placed to sell data and e-mail capability
to its existing subscriber base.
Competitive Advantages: CHL's main advantage is
the size and scope of its network. The company has a 70% market
share in China's wireless industry and has a network that covers
about 96% of the Chinese population. When new consumers look for
a network they want the best possible coverage.
And CHL's quality network has also given it a leg-up in terms of
launching ancillary services. Total wireless revenues surged by
close to +25% year-over-year in the most recent quarter led by
increased utilization of text messaging and multi-media
(picture) messaging services.
Another advantage for CHL is that it has a small debt burden.
That means the company has plenty of scope to invest in
upgrading its network to handle new services.
Valuation and Outlook: China Mobile is China's
dominant wireless carrier and the largest single wireless
carrier in the world. Given its 70% market share of one of the
most promising growth markets in the world one would expect CHL
to trade at a premium to its growth rate.
But that's not the case -- the stock trades at less than 11
times earnings compared to an annualized growth rate of +16%.
Action to Take -->
On top of all its growth opportunities, CHL also generates
copious cash flows and offers a near 4% yield for investors.
Good investing!
[http://www.streetauthority.com/includes/editor-profiles-ma.htm]
Disclosure: Paul Tracy
does not own shares of CHL.
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