...and Diesels There

12/31/2004 12:00 am EST


Donald Straszheim

Chairman and CEO, Straszheim Global Advisors, LLC

When it comes to investing in China, Don Straszheim is among the most sought-after authorities. The former chief economist for Merrill Lynch now runs a boutique research firm, which specializes in finding US-listed firms that are poised to benefit from China's growth.

"My top pick for 2005 is China Yuchai (CYD NYSE), a big, diesel-engine manufacturer in China. We see great prospects for this stock, riding the economic growth wave in China. As the economy prospers and grows, we expect to see strength in transport of goods and people, increased demand in the electric power industry, increased manufacturing strength, and a construction boom of unprecedented proportions. Better road infrastructure being built is an added plus.

"The stock is currently recovering from a 2003 speculative spike in price, which was followed by a panicky sell-off. This is a way to play China with the investor protections of SEC and an NYSE listing. We emphasize that there is no 'state ownership' in this small-cap company ($400 million market cap) company. We initially recommended this stock on 9-15-04 at $12.50, and the stock is currently trading at $14.17. Our target price for this selection is $20 per share by year-end 2005."

  By clicking submit, you agree to our privacy policy & terms of service.

Related Articles on

Keyword Image
Inverted Yield Curve!
01/17/2019 12:33 pm EST

An examination of Eurodollar Futures and Rates plus Treasury Yields indicate an inverted yield curve...

Keyword Image
Crude Oil is Stuck in The Mud
01/17/2019 10:36 am EST

The oil market is having a hard time getting anything going lately as bearish and bullish forces are...