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A Busy Signal at China Mobile
People often ask why I bother to produce this newsletter. Sure, the private jets to the Kentucky Derby, the free tickets to heavyweight fights in Las Vegas, and the endless dinner invitations in every major city in the world are all nice.
But for me the real incentive is the great tips I get from readers from every corner of the globe. I was casting around for good, stable dividend plays in China, as I believe that in a low interest world, high dividend paying companies are going to become increasingly sought after.
Out of the blue came a suggestion to look at China Mobile (CHL). The company has the monopoly for providing cell phone services in the Middle Kingdom, has a staggering 544 million customers, and is gaining an amazing 5 million new subscribers a month.
Revenues are expected to rise by 17% this year, providing an extremely safe dividend of 3.3%. The stock chart might as well be one for a high yielding utility, as it has risen 10% YTD, versus a 9% fall for the Shanghai index.
If you want to learn more about CHL, please revisit my interview with Jim Trippon of the China Stock Digest by clicking here.
Better put this stock on your speed dial.
To seethe data, charts, and graphs that support this research piece, as well as more iconoclastic and out-of-consensus analysis, please visit me at www.madhedgefundtrader.com . There, you will find the conventional wisdom mercilessly flailed and tortured daily, and my last two years of research reports available for free. You can also listen to me on Hedge Fund Radio by clicking on “Hedge Fund Radio Archives” in the upper right corner of my home page.
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Nooo! let's do rash! :)
sounds like this joke:
Irish realty investors try to sue journalists who presented Bulgaria as a great investment...eerily similar, but they had visualizations...thatched roofs and horse-drawn carriages
China mobile communication sounds great looking at the population, but prises on calls get cheaper and could get free-er also, don't forget.
"unlimited" population bring with it unlimited populism and you should take that into account too, brother
is China supposed to be stable and predictable??
talk to me :)
Looking at the chart, I'd be willing to call CHL a sloppy inverse H&S with a neckline 51, 52.
Let's wait for it to resolve that gappy-looking little island structure up above 52 before we do anything rash, though, how about it?
home work sucks... can't we just eat iced cream instead?
and also China Unicom (CHU)
Do some homework.
China Mobile is not a monopoly.
It competes with China Telecom
which trades on the NYSE as CHA.
I'm hearing a lot about Middle Kingdom alternative energy solution providers.