First, you should have been stopped out of your China National Offshore Oil Corp. (CEO) position last month when it hit my recommended protective sell-stop at $108.29. That’s unfortunate, but that is what stops are for: To limit risk. Not to worry — your other Asia Investments are growing gains hand over fist, with USCOX up 44.2% and FXI up 21.7%. And there’s more where that came from.
Now, let’s move on to my next recommendation: Buying Korea Electric Power Corp. (KEP)
KEP is a state-owned monopoly which transmits and distributes all of the electricity in Korea. KEP is a fundamental value play in the process of putting in a technical bottom following a year-long downtrend. The company also trades at an attractive valuation and maintains a compelling dividend yield. I see plenty of upside from here.
Here’s what to do:
Place a standing good-till-canceled order using 5% of your funds allocated to the Asia Investments section and buy Korea Electric Power Corp., symbol KEP, at $18.65 or better. When filled, place a good-till-canceled protective sell-stop at $16.75.
In the meantime, continue holding your …
Shares in China Mobile Ltd., symbol CHL. Hold and maintain your good-till-canceled protective sell-stop at $48.15.
If you have not purchased CHL, you may purchase it now at the market using 5% of the funds you have allocated to the Asia Investments section. Place a good-till-canceled protective sell-stop at $48.15.
Shares in U.S. Global Investors China Region Fund, symbol USCOX. Hold and exit the fund if it closes below $7.20 on any trading day.
If you have not purchased this fund, you may purchase it now at the market using 5% of the funds you have allocated to the Asia Investments section. Exit the fund if it closes below $7.20 on any trading day.
Shares in iShares China Large-Cap ETF, symbol FXI. Hold, and maintain your good-till-canceled protective sell-stop at $33.75.
If you have not purchased FXI, you may purchase it now at the market using 5% of the funds you have allocated to the Asia Investments section. Place a good-till-canceled protective sell-stop at $33.75.
