$15 BILLION BIDDING WAR...Got this hype in my e-mail this AM. Let's hope a portion of it is true...
Bought 2000 shares at just over $5 a couple of years ago, sold half around $15 - wish I hadn't now. It's a better return than many penny plays and still going!
$15 BILLION BIDDING WAR + EARNINGS SURPRISE ON 10/25 COULD REWARD YOU WITH MOUNTAINS OF PROFITS!
Fellow Investor,
China is secretly preparing to make up to 10 global companies wealthy beyond their wildest dreams!
You see, plans are already underway to quietly bid out 10 power infrastructure contracts worth a whopping $15 billion to a select few leading global companies.
I say "a select few" because even though the bidding will almost certainly be a free-for-all among companies big and small, domestic and foreign... the system is completely and hopelessly rigged against practically every single one of them.
Like everything else in China, what it really comes down to is this...
Do you have the "guanxi," or local connections, to get the job done?
And one leading global company can answer a resounding "YES!" to that question. In fact, they've already won some critical contracts, such as a transformer upgrade in Beijing for the 2008 Olympics and a robotics system installation at a recently opened Daimler-Chrysler manufacturing plant in Beijing.
But the coming $15 billion bidding war on critical power projects will make all their previous Chinese contracts combined pale in comparison.
And the best part is this $15 billion bidding war is made up of 10 separate battles worth $1.5 billion each. So win just one battle and you'll pocket $1.5 billion. Win two battles and the fortunes of your company will double!
Here's why I think one global company could win three or more of these filthy-rich contracts worth almost $5 billion during the next 3 years!
It's no surprise that China's electricity consumption is growing by leaps and bounds, up 15% from a year ago. And as China's power consumption grows, the government has been pouring billions of dollars into infrastructure upgrades for the nation's power grid. China is adding about 80 gigawatts of new power capacity -- equal to the United Kingdom's entire installed capacity -- every single year.
Now here's where it gets electrifying...
According to sources in the know, China plans to build about one new "ultra-high voltage" transmission line every year for the next 10 years, each line costing about $1.5 billion.
And the aforementioned global leader in power infrastructure will be bidding to win every single one of these projects! At the very least, even if they win just one contract, this company will be riding high for a long time to come.
It's NOT just China
India's aspirations in infrastructure spending closely match China's... and this company is there as well.
The Indian government plans to spend $200 billion in power generation, transmission and distribution between 2007 and 2012. Over 120,000 villages will be electrified in the next 5 years. And one company will likely be at the forefront, bidding on -- and winning -- rich contracts by the barrelful during the next 5 years.
Boasting already-massive growth rates of 35% in China and 34% in India, you see how this company could start whistling an even sweeter tune in the very near future.
October 25 Marks the Spot
Oh yes, and there's one more thing. The company announces earnings on Thursday, October 25!
That's right. I strongly recommend you own it today so you'll be perfectly positioned to enjoy the potentially record-breaking profit surprise that's set to hit in a few days.
Go here now to get the name of this stock before October 25
A Mighty Leader in the Global Infrastructure Megatrend
With the Q4 stock market rally well underway, there's never been a better time to buy one of my newest Global Stock Investor recommendations, the Swedish-Swiss power and engineering giant that is my #1 pick on the global infrastructure boom.
On the one hand, the company is profiting handsomely from the build-out of new infrastructure in fast-growth global economies, as the emerging markets play catch-up with the rest of the world.
On the other hand, the already-developed economies of both the United States and Western Europe need massive upgrades to their aging electrical infrastructure during the next few years.
Combine these two enormous themes and you get a megatrend that virtually guarantees mega-profits for many years to come for well-positioned investors.
Operating in more than 100 countries and employing about 109,000 people, this company boasts 9 research centers, 6,000 scientists and 70 university collaborations across the world. They're clearly a leader in global research and development.
Their two largest divisions are the Power Products and Power Systems units, which provide critical power grid components such as transmission and distribution lines, as well as substations. They also provide the engineering services that ensure that these systems operate with clockwork efficiency.
The company also serves industries as wide-ranging as oil and gas, power, chemicals and pharmaceuticals, pulp and paper, metals and minerals, marine and turbo charging. In addition, they are one of the world's leading suppliers of industrial robots for a wide range of industries -- installing more than 150,000 robots worldwide thus far.
Today the company has a remarkably diverse business -- both in terms of product range and geography. The revenue from "mature markets," the United States, Western Europe, and Japan, accounts for 56% of their business, with the remaining 44% stemming from emerging markets.
Orders Keep Flowing in... Profits Keep Rising
Orders received during the last few months illustrate this diverse global customer base perfectly. They include a $50 million order from Canada; a $126 million order for three power substations in the Middle East; the delivery of a $10 million main component for the world's first satellite built to measure greenhouse gases in Japan; and an order worth $110 million to supply an advanced railway power converter system for a power station in Germany. In the last 5 months, they have been able to secure 11 contracts valued at more than $25 million each!
Truer words have never been said than when the company's CEO recently remarked: "I am very optimistic about the short-, medium- and long-term" of the company. In fact, that's a mighty understatement.
Their first quarter this year far exceeded analysts' expectations. Net profits jumped by an eye-popping 163% to $537 million, while operating profits rose 67% to $822 million. Operating profit margin rose to 13.2% from 9.6% last year.
Not to be outdone, their second-quarter profit nearly doubled on strong growth in sales and orders to again beat analysts' already-high expectations. Net profit rose to $729 million compared with $367 million a year ago. Sales rose 27% to $7.14 billion and orders jumped 26% to $8.67 billion.
I'm confident you detect the pattern here. And now you understand why you must own this stock before they announce third-quarter earnings on October 25. Because you simply do not want to miss their third consecutive profit surprise!
And if they win even one of China's $1.5 billion power contracts, Wall Street will push this stock sky-high. It's difficult to even fathom the mountains of shareholder profits if they won two or more of these filthy-rich contracts.
Nicholas A. Vardy
Editor, Global Stock Investor