Dear Fellow Investor,
It's been a whirlwind week! Yesterday, I took a 24-hour business trip to Vancouver, Canada. I just got back to Los Angeles about an hour ago, and later today I will head out again -- this time to China for a two-week visit.
I'm thrilled to be returning to China. While I'm there, I'll be meeting up with my China Investment Tour group. And of course, I'll be doing research for the Inside China Dispatch and China Strategy by investigating the unprecedented wealth creation taking place in China today.
My schedule is jam-packed with educational and exciting events. My first stop will be in Taipei, where I'll meet up with my wife, Yvonne, and our kids, who have already been in Taiwan for a couple of weeks.
Then we'll be off to Shanghai, where Yvonne and I will host a welcome dinner for our China Investment Tour group. While in Shanghai, I'll also meet with the Vice Chairman of Shanghai's Chamber of Commerce, my friend Gou Man-yuen. Mr. Gou is a successful real estate developer and multimillionaire investor with influential connections in both Beijing and Washington. He's a fan of my China Strategy service and has promised to share his insights on recent developments with China's newly minted multimillionaire entrepreneurs. This promises to be an informative and insightful conversation that I don't want you to miss. Sign up for China Strategy today and get all of the details straight from Mr. Gou!
I'm also very excited about visiting China's biggest bookstore chain, which is planning to go public on the U.S. exchanges next year. I'll meet with key players in this deal, and we'll talk about financing issues for the company. This business caught my attention because it fits in perfectly with one of the major themes we're following here in Inside China Dispatch:China's consumer boom. I'm eager to check out this company because it might make a good investing opportunity for us in the future.
After finishing up in Shanghai, I'll fly out to Shenzhen and have dinner with some of China's finest money managers. I plan to take advantage of our time together to talk about stocks, investing strategies and economic policies. The next day, I'll meet up with our tour group. We'll visit the top stock brokerage firm in Guandong Province, China Merchants Securities, as well as the Shenzhen Stock Exchange. The brokerage firm will host a special dinner for our group and answer questions about China's recent stock market boom. I'll share the firm's advice with you in an upcoming edition of Inside China Dispatch.
The next morning, our tour group and I will visit the headquarters of one of the biggest gainers in my China Strategy portfolio -- China's leading medical device company. Since we have three medical doctors in our tour group, I expect this visit to be especially interesting. I plan to ask key executives about the company's technological edge, its near-term growth plans, its foray into the U.S. market and developments in China's healthcare policies.
Healthy Profits from Our Medical Company
Our medical device company has handed us big profits at China Strategy. I first recommended the stock nine months ago, and since then, it has already doubled (up 103%).
This company manufactures and sells more than 40 medical devices in three business segments —patient monitoring devices, diagnostic laboratory instruments and ultrasound imaging systems.
The company has the largest sales and service network of any medical device maker in China, with over 1,950 distributors and 500 direct sales and support personnel. This extensive network gives it the advantage of being close to its customers, enabling it to be more responsive to local market demand than its competitors.
The company also has a major advantage over the rest of the world's medical device makers because it sells its products 30% cheaper than its competitors! China's low-cost manufacturing advantage will help sustain the company's high growth rate for years to come. While this company is already the leader in China's fast-growing medical device and laboratory instrument market, its global market share is still only 0.3%—giving it almost unlimited room for growth. As the low-cost heavyweight in an increasingly price-sensitive worldwide market, this company should continue to gain market share rapidly.
The company is expected to report earnings in the next few weeks, and I'm expecting big numbers. Last quarter, profits jumped 45%, revenues climbed 33%, and gross margin (something I place a lot of emphasis on) also expanded about 3%. For the second quarter, I believe the company will meet or exceed these results. Click here to get immediate access to this winner and read about my exclusive visit to its China headquarters.
After my visit to this exciting company, I will go to Hong Kong, where I will fly back to Los Angeles. I'm looking forward to a productive and insightful trip, and I can't wait to see what kinds of exciting investing opportunities await us.





