George: A Top Pick for China
01/02/2004 12:00 am EST
"While we're bullish on China, we'd avoid local Chinese stocks, which still have issues with accountability and investor rights," warns Neil George, a long-standing proponent of investing in Asia. "Instead, go with the leaders that trade in China's top market, Hong Kong."
"The fact that Asia is home to a collection of high-growth economies isn't new. But while so much of the US media is bashing the region, the key players just keep improving their local economies. First on the list is China. No nation has transformed itself in such a dramatic way, in such short order, more than China. From a centrally planned economy with severe market and investment restrictions only a decade ago, it has emerged as one of the world's fastest expanding economies. We might not like that we've got serious competition in Asia, but we sure better be there with our investment cash."
"Our top pick is our Growth Portfolio favorite, Hutchison Whampoa (HUWHY OTC BB). If you buy just one stock to profit from China and the Asian ascent, this is it. It 's a wisely constructed conglomerate that controls a few key industries on the mainland and around the region. First is its prime industrial and retail real estate holdings. Next is its shipping operations; nothing moves around the world without paying Hutchison Whampoa. Then there's its telecommunications franchise, which ranges from the basic to cutting-edge third-generation technology. Finally, its energy division-gas and oil as well as manufacturing-makes Hutchison a force in every strategic market in the most dynamic region of the world-and beyond. Buy Hutchison Whampoa in small and consistent batches now and for the long haul."
Neil George will be participating in Investing for Growth & Income at The World Money Show in Orlando, Florida, February 3, 2004. Tickets are $89.00 through January 22, $109.00 afterwards. Click here for more information or to purchase tickets.