Hold All Positions and Add Shares of World’s Largest Wireless Telephone Company.
China is still the driving force in the global economy and will be for many years to come.
I also believe China — and the rest of Asia for that matter — will find some common ground with the incoming Trump administration over tariffs and international trade policies. That’s why I see China’s equity markets quadrupling over the next four years.
But for now, I do not recommend “backing up the truck.” I’m still expecting to see Asian markets pull back temporarily right along with U.S. equity markets in the first part of the year. But I do think now is the time to start selectively adding exposure to Asia by adding shares of some top quality Asian companies on a pullback.
My recommendation: Buy China Mobile Ltd. (CHL)
China Mobile is not only the largest wireless telephone company in China — it’s the largest in the world, with over 837 million customers. CHL dominates the Chinese wireless telecom sector with a market share of more than 60 percent. And best of all, CHL is a cash cow, generating significant free cash flow. Plus, it boasts one of the strongest balance sheets in the telecom world. CHL is also sitting on an enormous cash position of nearly $70 billion and the company also sports a healthy dividend of $1.73 per share, leading to a yield of 3.1 percent. The stock is technically short-term overbought, so I recommend adding shares on a pullback.
Go ahead and place an order to buy CHL at $53.50 or better:
Place a standing good-till-canceled order using 5 percent of your funds allocated to the Asia Investments section and buy China Mobile Ltd., symbol CHL, at $53.50 or better. When filled, place a good-till-canceled protective sell-stop at $48.15.
In the meantime …
nHold your shares in U.S. Global Investors China Region Fund, symbol USCOX. Exit the fund if it closes below $6.20 on any trading day.
If you have not purchased this fund, you may purchase it now at the market using 5 percent of the funds you have allocated to the Asia Investments section. Exit the fund if it closes below $6.20 on any trading day.
nHold your shares in China National Offshore Oil Corp., symbol CEO, and maintain your good-till-canceled protective sell-stop to $108.29.
If you have not purchased CEO, you may purchase it now at the market using 5 percent of the funds you have allocated to the Asia Investments section. Place a good-till-canceled protective sell-stop at $108.29.
nHold your shares in iShares China Large-Cap ETF, symbol FXI, and maintain a good-till-canceled sell-stop at $27.44.
If you have not purchased FXI, you may purchase it now at the market using 5 percent of the funds you have allocated to the Asia Investments section. Place a good-till-canceled protective sell-stop at $27.44.
