On Monday (read here) I discussed American Depository Receipts (ADRs) and what they're about. Today I want to cover a bit more and show you what these gems can do in times of U.S turmoil and the dollar's decline.
Now ADRs are not specific to any particular country, some have more than others and the ADR is a reflection of that particular country's economic growth. Some of the best ADRs that I have been watching have been coming from Taiwan, China, and India.
The biggest component or catalyst that makes an ADR shoot up is a currency difference. In theory, you want the U.S dollar to slide that creates a price difference, which ultimately gets the ADR to move and move quickly.
I'm going to show you 2 charts from 2 ADRs I'm currently tracking. You will see on these ADRs that they perform much better than a majority of the U.S stocks in 2011 and our recession has virtually no bearing on their performance. Remember that they track their home country; they're just listed here.
The first is Tencent (TCEHY.PK). This company is literally on fire in China and their ADR speaks for itself.
Since March of 2009, the best stock to buy has jumped over 300% and looks as if it will keep climbing. If the company keeps up their progress and the U.S dollar falls more, I'd bet we could see 500% by the summer.
Next up is Air China (AIRYY.PK). This ADR is also doing quite well and in the timeline provided, I don't know of too many blue chips that have performed like this.
With Air China, the stock has climbed over 300% just like Tencent has and they are in completely different industries.
I think if you haven't started investing in ADRs, you're missing out big time. Think about those gains, especially in this economic environment we're in right now. We're in a very uncertain time and having investments like these two I have mentioned, it can make all the difference in the world. Only you could imagine how useful a combined 600% would do for your life.
I'll be covering some more on ADRs next week and would really like your feedback. Are ADRs something you're interested in? If so, I'll dedicate more time in their coverage and explaining how you can pull big profits.
Email me here.
Sticking It To The Man (Eric Dickson)
What's the difference between a Wall Street banker and a main street investor?
Bankers don't care about companies, just how much money they can make off of them!
Lose the mom and pop mentality and start taking money from these greedy bankers.
How?
By investing in top stocks for 2011 that can't touch… and let me tell you, there is more money to be made in these small companies because:
1.) Their share price (i.e. purchasing price) is cheap; And
2.) The upside potential is staggering.
When was the last time you made a $995 investment and turned it into a paid vacation, new car and down payment on a home? Last year investors saw gains exceeding 1,400% using this very strategy of pillaging specific small caps… now you can too! Just follow this link.
This is No Monopoly… It's Just Government-Run (Eric Dickson)
I know this is going to get some debate going…
With the pass of Obamacare, the $70 billion-a-year student loan business is about to come under government control. Let the debate begin.
There are two trains of thought here: one, this should cut the middle man (banks) and help more students get more loans; and the second being this is just another government takeover of private business.
Banks. Cars. Health care. Now student loans… what's next…?
Personally, I was lucky enough to lock in a fixed rate when I got out of college – under 2% on my student loans. But that wouldn't have been possible if it were not for competition… free markets… i.e. private business.
Private businesses are efficient. Governments are not.
What's the rub here – is the government trying to help the average kid get an education, or get more control and increase their 'quick sand' bottom line?
According to Fox News (article)…
"The bill would see $61 billion in savings over 10 years from the switch to direct government lending. It would pay for Pell Grants and provide more than $4 billion to community colleges and historically black colleges. It also would direct about $19 billion to reducing the deficit and offsetting expenses in the health care legislation."
The key phrase is 'reducing deficit and offsetting expenses in the health care legislation'.
Private banks would no longer get fees from the government for acting as middlemen. This sounds like students would get more money… but the bill proposes only modest increases over a five year period. In fact, the maximum Pell Grant, which a House-passed bill last year would have raised to $6,900 over 10 years, will now only increase to $5,900. The current maximum grant for the coming school year is $5,500.
Moving in the opposite direction here. Again, on the surface, smooth talking members of Congress and the Senate make you believe that this is in our best interests… but what we're losing it the social fabric of a nation, which is choice.
Without competition there is no choice. If this were a private business, doing what our government is doing, they'd call it a monopoly. But then again, with our record deficits, the dollar is almost like monopoly money anyways.
Same Dog. Same Tricks. (Eric Dickson)
Sounds a lot like old school bribery… but then again, it's how the health care bill got pushed through… same dog, same tricks.
It was reported today in the NY Post (article) that New York State Senator; Jeff Klein (Democrat) told labor leaders that if they want to play, then they got to pay. We're not talking about back-room lobbying efforts here – this is blatant.
Apparently if you want to get a chairmanship to the newly created 'Labor Advisory Council' then it would only cost you $50,000. Not bad considering…
"Advisory Council chairs will have the unique opportunity to advise the Senate Dems on the structure and focus of the Labor Advisory Council… In addition to all meetings, conferences and events that are included with Advisory Council membership, the advisory chairs will be invited to an exclusive meeting with the Senate majority leaders."
It also promises that Advisory Council members "will actively participate in the essential policy conversations that help construct our 2010 campaign strategy," according to the obtained letter.
New York Public Interest Research Group Legislative Director Blair Horner said,"Wow, it's rare to see something so brazen where the Senate leadership is giving unique access to powerful interest groups for $50,000 each, giving them a seat at the table that no one else gets."
But then again, in the world of unions and politics, this shouldn't come as a shocker. I guess Senator Klein took to Obama's oath of an open and transparent government. Bet you never guessed this is what that meant.
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