For stock investors, China/India may be the story of this decade. However, investing in individual stocks domaciled in China/India, or Exchange Traded Funds (ETF's) that invest in them, could be reaching bubble proportions. So I am searching for global companies whose profits are highly dependent on exporting goods, commodities, or services to the huge consuming countries such as mentioned above. I have begun my search by paying close attention to stocks posting new 52 week highs, particularly on days when the major American exchanges have had sharp losses. I have attempted to filter out (eliminate) companies without strong earnings and earnings growth. And I have attempted to eliminate companies that have not significantly outperformed the S&P500 during the past 200 days. I have come up so far with quite a few companies in the fertilizer industry such as POT,MOS, & CF. I am looking for additional companies that might fit this concept of exporting to China/India
which I feel will continue for a good many years. This is my initial contribution to wikinvest, so I would welcome any comments,criticism, or corrections,including my spelling. Cheers, from refrus.
Company's that Benefit from China's increasing demand for exports
Fertilizer Companies
- Potash Corporation is a major fertilizer company responsible for 15% of the world's production of Potash and derived 70% of its revenue from Asia in 2006. Also, the stock price has out-performed the S&P500 by approx. 135% during the past 200 days.(source: stock charts Relative Performance charts as of today, 12/19/2007. This is a Canadian company. The biggest risk over the near term might be a dramatic increase in the value of the yuan.
