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By Jonathan Yates

Sir John Templeton, selected as the stock picker of the century by Money magazine, created his fortune by purchasing U.S. stocks during the Great Depression priced at $1 a share or less. In a four-year period, he posted a return well into the triple digits.

Such a situation now exists with Chinese steel stocks such as China Gerui Advanced Materials Group Ltd (NASDAQ:CHOP), Ossen Innovation Co. (NASDAQ:OSN) and Sutor Technology Group Limited (NASDAQ:SUTR) trading in the low single digits with low single-digit price-to-earnings ratios.

As detailed in a recent article in The Wall Street Journal by John W. Miller, "Steel Prices Shine, Lifting U.S. Makers," the global steel industry is recovering.

The largest steel consumer in the world, as with so other many commodities, is China.

CHOP, OSN and SUTR have fallen along with many other Chinese stocks for a variety of factors, including a perceived slowdown in the country's construction boom.

All three stocks are down substantially for 2011 -- the plunge has been about 90% for Ossen Innovation -- which means there is room for recovery.

Sir John Templeton, as detailed in articles on emergingmoney.com, took a very rational approach to stock picking. Suffering though the American economy was during the Great Depression, he knew it was not going under.

The same could hold true for single-digit Chinese steel companies with low price-to-earnings ratios such as China Gerui Advanced Materials, Ossen Innovation and Sutor Technology.

Source: Do Chinese Steel Companies Bring Out Your Inner John Templeton?