The December retail sales report was a disaster, notes Landon Whaley, who recommends shorting the SP...
A Rising Star with International Appeal
12/15/2006 12:00 am EST
Far Eastern expert Nicholas Vardy manages to ferret out some of the most interesting companies from the legion of names being bandied about by Wall Street. In his recent issue, he recommends a company with tremendous growth potential.
"The Chinese stock market is on fire. Most U.S. investors' money is flowing into the Chinese mega cap stocks like our current Global Bull Market Alert pick, China Life Insurance (LFC NYSE). But right now, we want to focus on one of China's red hot, newly emerging private companies, Mindray Medical International Limited (MR NYSE).
"Mindray Medical International Limited is a leading developer, manufacturer, and marketer of medical devices in China. The company was established in 1991. Mindray offers products across three primary business segments: patient monitoring devices, diagnostic laboratory instruments, and ultrasound imaging systems. The company sells its products primarily to distributors but also sells directly to hospitals, clinics, government agencies, and original equipment manufacturers.
"Although Mindray is headquartered in Shenzhen, China, the company's aspirations are global. Last quarter, Mindray's net revenues generated in international markets exceeded its net revenues generated in China--for the first time. The company already has 29 local sales and services offices in China, as well as sales and services offices in Boston, Istanbul, London, and Vancouver.
"Mindray also recently announced a multi-year licensing pact with Aspect Medical Systems in connection with its patient monitoring systems. Finally, it is one of the few companies left in the world willing to put up with the hassles of Sarbanes-Oxley. The company listed on the New York Stock Exchange only this past September.
"Mindray boasts the kind of growth numbers other businesses only dream about. In the third quarter, the company's net income rose 131.0% and its fully diluted earnings per share was up 213.3%, compared with the same period last year. These numbers are particularly impressive, since Mindray produced them in the midst of product launch delays caused by changes in China's SFDA regulatory approval processes as well as a government-driven, anti-corruption campaign targeted at the healthcare industry.
"So we recommend that you buy Mindray Medical at market today and place your initial stop at $19.90. For potentially even more upside, buy the April $25 call options (MRDE.X). The shares of Mindray Medical are volatile, so you may want to take half your normal position size."
Business development companies (BDCs) lend money to private companies in the form of fixed and varia...
We are initiating coverage of L’Oreal Inc. (LRLCY), the world’s largest cosmetics compan...
In addition to high-quality blue chip, long-term holdings, we also occasionally look to long-term op...