Wednesday December 02, 2009
"Ignoring Asia outright will prove to be one of the biggest mistakes an investor can make," says Yiannis Mostrous.
In Personal Finance, he notes, "Asia has entered a cycle of capital investment, infrastructure spending and domestic consumption that’s still in its early stages.eyes a trio of ideas in China, Indonesia and India." Here, he looks at a trio of favorites in China, India and Indonesia.
"Opportunities abound for the long-term investor. Asia can easily grow three times faster than advanced economies, even assuming a dip below its long-term trend growth of 8%.
"China Mobile (NYSE: CHL) offers good exposure to the Chinese domestic demand story. The company has a subscriber base of more than 300 million and generates 80 percent of the Chinese telecom industry’s mobile-related revenue.
"Although telecom competition has been intensifying in China, growth potential is still high. The penetration rate for China’s mobile telecom market is just 50% and continues to grow.
"China Mobile boasts superior network quality, strong brand-name recognition and a skilled management team--all of which set it apart from its competitors. With a yield of 3.5%, the stock offers both growth and income potential, which makes it a compelling long-term investment.
"HDFC Bank (NYSE: HDB) is India’s second-largest private sector bank. The bank reported strong third quarter profits and a 17% reduction in nonperforming loans. Loans increased 9.5 percent from the previous quarter.
"The market has failed to fully appreciate the bank’s ability to grow annual earnings by 30%. For that reason, stock performance should eventually surprise on the upside.
"PT Telekomunikasi Indonesia (NYSE: TLK) offers steady growth in a promising economy. Its mobile unit, Telkomsel, occupies a dominant position in the market and offers growth opportunities.
"Mobile penetration remains low in the hinterlands at 25% to 30%, whereas mobile penetration nationwide currently stands at around 40%. Overall, PT Telekom remains one of the best telecom plays in Asia, thanks to a modernizing Indonesian economy and growing demand for mobile services."
