I'm writing this while on
a short holiday in Macau, Asia's booming Las Vegas. And let me tell you
(again) — judging by what I'm seeing in Macau, there are very few signs of a
slowdown in Asia!
More than 1.5 million
international visitors arrived in Macau in the first six months of 2008 — UP 47%
over the same period last year.
Mainland China visitors to
Macau soared to a record 8.8 million, and in total, a record 14.92 million
tourists visited in the first half of this year, handing Macau's government a
whopping 51.4% increase in gaming tax revenues.
Of course, that's Macau,
and it may not represent the rest of Asia, right?
Wrong. I am seeing the
same vibrant economies wherever I go on my current tour through Asia. In Hong
Kong ... in Thailand (despite yet another government coup) ... and in the mother
of all Asian economies, China.
That brings me to my top
three Asian energy dynamos — companies that are in the cat-bird seat to feed
China's intensely growing energy needs. Given what I'm seeing here in Asia, and
the current pullback in oil and gas prices, I think now is a great time to give
you an update on them.
I've profiled these Asian
energy dynamos before, and they've seen some nice gains — as much as 172.5% —
before getting hit by some of the recent selling happening all around the
world.
But even after reviewing
those downdrafts, and adding in what I'm seeing on my current Asian trip, I
think these shares are ripe for the picking, AGAIN. So let's review them
...
#1. China
Petroleum & Chemical (SNP) is well off its highs, but I am VERY
BULLISH on the company's prospects. Also known as Sinopec, the company is Asia's
largest refiner by capacity, a giant that reaches every facet of the oil
industry — from exploration and development to marketing, distribution, storage,
trading and petrochemical production.
Sinopec has 3.03 billion
barrels of crude oil reserves along with almost 2.9 trillion cubic feet of
natural gas. Valued at current oil and gas prices, those reserves are worth a
whopping $347 billion.
Sinopec is trading around
$97 a share. That's more than double its price at the beginning of 2006 but down
almost 50% from its record high, a great price level to buy or add to your
shares in this blue chip Asian energy company.
And get this: Based on
three-year expected earnings growth, Sinopec's share price is now trading at an
unbelievably cheap price-to-earnings ratio of just over 12. The company is
loaded with cash, loaded with growing revenues, expanding like crazy, and also
paying a healthy 4% dividend to its shareholders.
If you don't have a
long-term core position in Sinopec, consider buying the shares now. Or add to
your existing position.
