Asia’s Markets Could Open a Massive Profit Opportunity

Asian markets got battered this morning.

In fact the regional MSCI Asia Pacific Index benchmark is now at its lowest point since November 2005.

But the sell-off is fantastic news for us.

Because it has driven down the price of one fantastic company that we have on our watch list...

This company’s share price is already up by a mind-blowing 1958% since 2003. And that could just be for starters.

Because this company offers a unique play on Asia’s economic boom.

Asia’s growth story is still on track

The weakness in Asia’s stock markets this year is a short-term blip though. The region’s underlying growth story remains strong. So the current sell-offs offer a lot of opportunities for investors willing to take a slightly longer term view.

Yesterday the president of the Asian Development Bank predicted that the region would suffer less than expected from the global economic slowdown.

Long-term investment in the region is still strong. So is domestic demand. And Asia’s economies have also not been hit hard by the share market turmoil. Because most of these countries rely on banks to raise capital rather than on the financial markets.

Asia is still in very good shape. Of course the region can’t escape the global slowdown entirely. The ADB currently predicts that Asia’s developing economies will grow at 7.6 per cent this year and 7.8 per cent next year. But it is expected to revise that downward slightly in a report next week. But that compares very nicely with the EU’s predictions for Europe’s economy. We seem headed for a recession by the end of the year here in Britain. That’s according to the EU’s Commissioner for Economic and Monetary Affairs. And so are Germany and Spain.

The key point here is that the economic growth in Asia remains strong. Fuelling that growth will continue support demand for energy. And that brings us back around to a company that has been on the Profit Hunter investment watch list for some time now.

This is a dirty business, but it is very profitable

This company is Asia’s biggest producer of coal for power plants. And it has been on our investment watch list for some time now.

Coal is a ghastly energy source. It is filthy and polluting. But there is also lots and lots of it. And it is cheap. So demand for it is growing fast.

Coal is already the world’s biggest source of energy for electricity production. And between now and 2030 it will be the second fastest growing source of energy after natural gas. A huge part of that growing demand is going to come from developing countries in Asia.

Just look at India. The country used 460 million tonnes of coal last year. But demand could hit 2 billion tonnes a year by 2031-32. Coal is in a long term bull market as long as the Asian economies keep growing.

What makes this company so exciting isn’t just its size though. It is also a remarkably efficient producer. Which makes this a fantastic growth story.

Shares in this company have fallen by 58% from their peak on June 10th. Right now its shares are being battered by the sell-off in Asian markets.

And they are beginning to look like fantastic investment opportunity.

This is an incredible growth story. Its share price is still up by an incredible 1958% over the last five years. And that’s despite losing more than half their value since June!

But there is still room for it to fall further in the near term. So we are going to hold on a little bit longer before deciding whether it is the right time to get in.

Asia’s falling markets open up another fantastic opportunity

I will be writing more about this company shortly. But market weakness in Asia recently has also thrown up another incredible investment opportunity...

I am talking about Vietnam.

This is quite simply Asia’s most exciting economy. Global downturn or not, this country’s economy looks set to keep growing at a blistering pace. But again, its markets have taken a hammering. So right now, you can buy-in on the cheap and position yourself for the rebound.

I’ve written a short report showing you exactly how you can do just that - while keeping your money right here in London. You can take a look at that here.

Regards,
Manraaj Singh
Editor
Profit Hunter

Please note: Past performance is not a reliable indicator of future results.

P.S. If you enjoyed this article then we encourage you to sign up for Profit Hunter. Track down exciting opportunities in the worlds’ emerging markets and always stay ahead of the curve.

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Asia’s Markets Could Open a Massive Profit Opportunity

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How Asia's Battered Markets Could Open a Massive Profit Opportunity