Here is a list of stocks which traded higher Monday November 9, 2009, on unusually higher volume. I will keep an eye on these stocks Tuesday to see if there is continued buying pushing the stocks higher. This method is just one of the ways I use to pick stocks to structure particular option trades. This post requires the knowledge of stock options. To learn more about the option strategies outlined in this post, risks, pricing, calculations, other strategies, and options in general, click here.

The table below shows the company, ticker, per share % increase, and volume increase (% increased compared to 50 day average). For your convenience I have ranked the stocks in order from greatest to least volume % change.

Much has been made of the growth of the BRIC countries of Brazil, Russia, India, and China. But the fact remains that despite their impressive growth rates, all of these countries remain very poor relative to the developed world. For example, in the People’s Republic of China, more than one third of the population lives on less than $2 a day. In Brazil the figure stands at 18%, and an incredible 75% in India (PDF). These depressing figures indicate that the BRICs have a long way to go to reach developed status. While there are certainly great opportunities in the BRICs, there are also substantial risks.

Some degree of BRIC exposure should probably be included in almost every investor’s portfolio (see our complete guide to BRIC ETFs for a closer look), but many investors might be better suited tilting their international exposure to the “TICK” bloc of Taiwan, Israel, Chile, and Korea. These economies may be small, but they all pack an economic punch. All four are ranked between 25-50 on the Human Development Index (note Taiwan is not recognized by the UN but would rank 25th according to its statistics), and all have above world average GDP per capita (PPP).

Sometimes it is better to be lucky than good - but it's always preferable to be both.

Mid-month we cut back our position in AsiaInfo Holdings (ASIA) by half on a spike around $23. Since then, as the stock has fallen back, we've made some small purchases, including one this week in the $20s to get our position size back up - nothing big enough in any one batch to mention.

We have a very obvious gap formed yesterday morning that we have to ask "when" does it get filled? This morning Goldman Sachs (GS) obliterated analyst estimates... surely *I* for one was surprised (ahem). But everyone expected this, and the stock did not surge for the 85th out of 93rd session in a row. Google (GOOG) is after the bell and we all know they will beat ... so will IBM (IBM) - they almost always do in the game of "set expectations low, and beat it". IBM also benefits huge from weak U.S. currency. But if everyone knows it, are we going to continue to act surprised? Who knows. Ball remains in bulls' court and "buy every dip" in religious fervor remains the game of the day....


As always its not the news but the reaction to the news. What was striking to me was the non-reaction in gold yesterday... silver did ok, but usually when the dollar goes in for its daily slaughter these both react well. At least of late ... not so much yesterday. Bank of America (BAC) and General Electric (GE) out tomorrow before the bell.

Cell phones and wireless value-added services (VAS) have taken China by storm, leaving wire line telephone service in the dust. China’s major wireless companies are healthy and growing. We have great affection for China Mobile (CHL), which was a huge winner for the Cabot China & Emerging Markets Report back in 2007.

But the big telecoms are old news now, and a better place to look for growth is in AsiaInfo Holdings (ASIA), a Chinese company that offers software solutions and software protection for the big phone companies.

Tuesday's Wall Street Journal had an article that asked the question "Can Rally Run without Revenue?" Is the revenue situation really that bad?

Let's take a quick look at some the data compiled through the Alert HQ process.

By Kindred Winecoff

Several aspects of the Great Global Decession (no sic) that should interest students of IPE are the knock-on effects of the global economic slump. These won't get the same headlines as 500 point drops in the Dow or 9% unemployment, but they can be similarly significant.

We have been interested in AsiaInfo Holdings (ASIA) for some time and patiently waited until it came into our price zone. Yesterday at $15.50 or so, we added an initial position to TDIMG portfolios. If the idea holds that there are hundreds of millions of users in China that will eventually need phones and there will eventually be an cell phone/technology enhancement and infrastructure build out (with or without stimulus) - this could be a company that benefits.

AsiaInfo Holdings, Inc. provides telecom software solutions in China. The Company provides a full range of telecom software solutions including network infrastructure, operation support systems, and service applications to China’s telecom carriers.

I'm beginning a very minor position (0.1% exposure) in a name we discussed last Friday - AsiaInfo Holdings (ASIA) [Aug 7, 2009: Niche Play on China Telecom - AsiaInfo Holdings]

I've had AsiaInfo Holdings (ASIA) on 1 of my "to do" lists to research for 6 months now and only in the past 2 weeks have created some time to actually dig into it. This is a $800M market cap company, growing at a stellar rate, profitable, no debt, reasonably valued unlike much of the nonsense being run up at 50, 60, 80x forward estimates. Their website is here, and a good overview of the company via .pdf file can be found here. Specific info on their product lines here.

Globally, the second quarter is a study in contrasts. Consider the latest news from Japan:

Leading economists believe Japan's economy may have rebounded faster than previously expected in the April-June quarter, a government-affiliated group said in a report released Tuesday.

Asian trade developed an interesting pattern on Thursday, with the developed regional markets trading higher while the emerging stock markets from the Asian region declining.

The Nikkei and the Austrlian S&P/Asx were the only two major indexes trading in the green during the Asian session. The rest of the Asian market, including shares from the emerging economies are heading lower at a sustainable pace. The best performing market in the Asian region was the Australia’s Asx until now, something that happens very rarely, while the Shanghai market tumbled a little more than 2.5%, being the worst performer of the day.

Hardware

• Panasonic Corp. (PC) said its domestic home-appliance unit may exceed its sales forecast this year, helped by government incentives to buy energy-saving products. The company expects the program to boost demand and help sales beat a projection of 640 billion yen (US$6.7 billion) in the year ending March 2010, according to Jun Ishii, the head of Panasonic Japan’s marketing division for home appliances. The home-products unit overall was the most profitable of Panasonic’s four main businesses last year, outdoing divisions making televisions and stereos, electrical components and homes. The July-to-September quarter will be critical for the Japanese unit’s results, Ishii said, after the government introduced incentives in May to boost spending on appliances as a part of Prime Minister Taro Aso’s plan to spur economic growth.
• Suning Appliance would pay 800 million yen (US$8.3 million) for 27.36 percent of Laox, making it the loss-making Japanese electronics retailer's biggest shareholder. Suning would pay 12 yen for each of 66.67 million shares and get two seats on the Laox board. Chinese firms have been looking for bargains in their efforts to expand abroad, but Suning said this was the first time a mainland firm had purchased a stake in a listed Japanese company. Suning hoped to return the flagging Laox to profit within a year or 18 months. Suning aimed to use Laox's expertise in the highly competitive Japanese consumer electronics retail market to help it improve business practices such as pricing policies, store layout and customer service.
• Sony Corp (SNE) is considering developing a cellphone-game gear hybrid in a bid to better compete with Apple Inc's (AAPL) highly popular iPod and iPhone. The Japanese electronics and entertainment conglomerate launched its first Walkman three decades ago, dominating the portable music player market, but it has been running far behind the iPod and iPhone in recent years. Sony plans to set up a project team as early as July to develop a new product that combines functions of its portable game player and Sony Ericsson's mobile phones. Sony Ericsson is a cellphone joint venture between Sony and Sweden's Ericsson (ERIC). A growing number of game-makers including Capcom and Square Enix are now offering software for the iPod and iPhone to take advantage of the Apple products' popularity, posing a threat to Sony's PlayStation Portable and Nintendo Co Ltd's DS.

Telecommunications

• NTT Docomo Inc. (DCM) will launch a new service jointly with Mizuho Bank to enable subscribers to transfer money via mobile phone handsets without opening new bank accounts. Rival KDDI Corp. (KDDIF.PK), the operator of the 'au' brand mobile phone service, has already been offering a similar banking service, but its service requires its users to open new bank accounts. Under NTT Docomo's money transfer service, subscribers input the receiver's phone number and part of their surname to make a payment of up to 20,000 yen (US$208.28), which will be charged on their monthly bills with a fee of 105 yen (US$1.09). The recipient can use the transferred money to pay their phone bills or put into their bank accounts via Mizuho Bank.

Semiconductor

• NEC Electronics Corp's (NELTY.PK) semiconductor orders would increase several percent this quarter, helped by demand for chips used in cars and liquid-crystal displays. Orders in the quarter probably jumped one and a half times from the previous three-month period, as manufacturers emerged from a period of excessive inventory cuts. NEC Electronics in May planned to cut labour and research costs by 90 billion yen (US$936 million) this financial year to break even at operating level this fiscal year. The company was increasing production to meet a recovery in demand. The factory-utilisation ratio, a measure of how close the plants are to operating at full capacity, would probably rise to 60 percent this quarter, from about 50 percent last quarter and 43 percent in the first quarter this year.
• Elpida Memory (ELPDF.PK) confirmed that it would receive 160 billion yen (US$1.6 billion) in aid and loans from the Japanese government, its Taiwanese partner and financial institutions after falling chip prices led to a record loss in the past fiscal year. The company would sell 30 billion yen in preferred shares to the state-run Development Bank of Japan by the end of next month. Taiwan Memory, a chipmaker set up by the island's government, planned to invest an additional 20billion yen by March 31, the bank said, while banks would lend the balance of funding. Elpida is Japan's last hope in personal-computer memory chips in an industry dominated by South Korea's Samsung Electronics and Hynix Semiconductor. Makers of computer memory worldwide are seeking funding to survive the chip glut that drove Qimonda to seek bankruptcy protection and resulted in a record loss at Elpida last fiscal year.
• Shareholders at Japanese specialty chip maker Rohm Co. Ltd. voted against a US$156 million share buyback proposal by U.S. investment fund Brandes Investment Partners. Brandes, which has US$42.4 billion under management, had proposed that cash-rich Rohm buy back up to 2.5 million of its own shares for a maximum 15 billion yen (US$156 million).

Korea

Media, Gaming and Entertainment

• TU Media, the country's sole operator of satellite-based digital multimedia broadcasting (DMB), said the number of its subscribers topped 2 million, four years after it launched the service. More than 20 million terrestrial DMB devices, including mobile phones, were also sold as of the end of May. The numbers suggest that about 45 percent of South Korea's 49 million population enjoy mobile TV service. South Korea first launched its DMB service in 2005, the first country in the world to do so, with the development of digital radio transmission technology. It has since become a ubiquitous feature of society thanks to a tech-savvy population and widespread cellular phones and laptop computers. Dubbed "TVs in hand," the mobile service allows people to surf TV channels via palm-sized monitors built into their cell phones while sitting in an underground subway or traveling via train. Various modes of public transportation such as buses, trains, and subways have also begun to equip vehicles with monitors broadcasting programs at all times.

Hardware

• LG Electronics (LGERF.PK) aims to overtake Sony as the second-biggest this year, driven by stronger than expected demand. The company was maintaining its LCD television shipment target of 18 million units this year, which would be achievable, said Simon Kang, the head of the firm's home-entertainment division. Global revenue from LCD televisions would drop 6 percent this year to US$76 billion, researcher DisplaySearch said last week, higher than its previous estimate of US$66 billion. Worldwide LCD television shipments will rise 21 percent to 127 million units, compared with an earlier prediction of 120 million sets, because of higher demand from China and as more consumers replace bulkier glass-tube sets. LG aimed to increase sales of flat-panel televisions by as much as 42 percent this year and boost market share with new products and technologies. Shipments of LCD television sets might rise 50 percent to 18 million sets this year, while those of plasma models would probably climb 7 percent to 3 million sets.
• Tokyo-based Idemitsu Kosan has entered into a strategic alliance with South Korea's LG Display to develop high-performance organic light-emitting diode displays. Their agreement encompasses the cross licensing of patented technologies related to OLED, and mutual collaboration on OLED technologies. The alliance is seen as mutually beneficial, with Idemitsu securing a global display leader as a customer by supplying high-performance OLED materials and device-structure proposals to the Korean display maker, and LG Display gaining the tools to accelerate its growth in the OLED business. Idemitsu turned its attention to phosphorescent materials as well as fluorescent materials. The company has been active in joint development with device manufacturers Sony and Toshiba Mobile Display, in parallel, and expects its new partnership to further strengthen its OLED-material business.
• Samsung Electronics (SSNLF.PK) has won a ruling from the U.S. International Trade Commission against Japan-based electronics company Sharp over patented technology for liquid crystal displays. The ITC found that Sharp infringed one of Samsung's patents in its LCD televisions and displays and ordered a ban on their import into the U.S. market. Samsung filed a complaint with the ITC in 2007 to investigate Sharp's products for infringing four of its patents. Sharp filed a counter-claim in March 2008. Earlier this month Sharp won a ruling from the ITC that found Samsung to have violated four Sharp patents and ordered a ban on the import of its LCD televisions, computer monitors, and professional displays in the U.S. market. In March Samsung won a LCD patent infringement suit against Sharp in the Tokyo District Court in Japan. In January the ITC ruled that Sharp infringed two Samsung LCD patents.

China

Hardware

• Lenovo Group (LNVGY.PK) raised the compensation of former chief executive William Amelio by 54 percent last financial year, after the mainland's biggest personal-computer maker posted a record annual loss. Mr. Amelio, who resigned on February 5, was paid US$17.6 million in the year to March, including US$3.25 million as compensation for loss of office as director. The document also showed Mr. Amelio's total compensation was US$11.4 million a year earlier. Yang Yuanqing, who replaced Mr. Amelio as Lenovo's chief executive, received a 42 percent increase in total pay to US$7.2 million for the financial year to March. Mr. Yang was previously the chairman, a title now held again by Lenovo founder Liu Chuanzhi. Mr. Amelio, who joined Lenovo from Dell in December 2005, had resigned in the aftermath of the firm's first deficit in almost three years - a net loss of US$97 million for the quarter to December last year, a reversal from a net profit of US$172 million the previous year.
• Samsung Electronics' Greater China sales volume reached US$44.5 billion in 2008, while its China region purchasing volume rose 27 percent year-on-year in the period to US$27.2 billion. Samsung expects China region purchasing volume to climb to US$32 billion in 2009 and currently has more than 4,500 domestic suppliers.

Telecommunications

• Ericsson has won contracts to provide fixed broadband to China's three telecom operators, China Mobile (CHL), China Telecom (CHA) and China Unicom (CHU). The initial contract will provide fiber-to-the-home (FTTH) networks for services including high-definition TV and high-speed broadband in Shanghai and eight provinces: Anhui, Guangdong, Hebei, Heilongjiang, Hubei, Liaoning, Shandong, and Sichuan.
• China Mobile Ltd. is still applying for approval from Taiwanese regulators on its plan to take a stake in Taiwan's Far EasTone Telecommunications Co. The Taiwan Affairs Office is under the State Council, China's highest executive body, and is in charge of cross-strait affairs. State-owned wireless carrier China Mobile agreed to pay about US$527 million for 12 percent of Far EasTone, which would be the first deal between telecommunications companies in China and Taiwan if it is allowed. Far EasTone shareholders have already approved the deal. Taiwan opened 100 sectors to investment by mainland Chinese companies, but didn't include the politically sensitive telecommunications sector, indicating the investment is unlikely to be approved by Taiwanese authorities.
• China Telecom's 3G brand e-Surfing opened a 3.6 million-handset tender. 70 handset manufacturers - including ZTE, LG Electronics, Samsung Electronics, Nokia, Huawei and China Wireless Technologies subsidiary Yulong Coolpad submitted bids to supply the handsets, which will retail for around 1,000 yuan (US$146.3).

Media, Entertainment and Gaming

• The9 (NCTY) President Xiaowei Chen has renewed her contract with the company for another two years, reports National Business Daily quoting an unnamed source close to Chen. The9 announced that its full year 2008 income, to be reported on Form 20-F on or before July 15, will be 55 percent to 75 percent lower than net income for the same period reported in its Form 6-K on February 24. The9 has incurred charges related to the loss of its operating license for 3D MMORPG World of Warcraft. Activision Blizzard division Blizzard Entertainment has licensed the game to NetEase for mainland operation following the expiration of The9's contract.
• Shanda Games Ltd. (SNDA), subsidiary of local online game operator Shanda, announced that it's struck a deal with Japanese peer CyberStep. Inc. to operate the latter's two MMORPGs, GetAmped and CosmicBreak, in China. GetAmped and CosmicBreak are both 3D massively multiplayer online role-playing games, with the former a combat game and the latter a shooter. CyberStep is a Japanese game developer which has been involved in the market for the past 10 years and GetAmped has been operating in over 10 countries so far.

Software

• Oracle Corp. (ORCL) is expected to commence its most important marketing campaign on the mainland this year following the global launch of its long-anticipated Fusion Middleware 11g suite of products. On the back of the mainland's economic stimulus initiatives, Oracle anticipated that enterprises in various industries are expected to be well positioned to adopt the software release, which includes key technologies brought by Oracle from its many acquisitions. The take-up will start in the telecommunications sector, where mainland network operators are building their nationwide 3G mobile infrastructure, and in the public sector, thanks to continued government spending. The central government announced in November last year a 4 trillion yuan (US$585 billion) economic stimulus package, including support to 10 strategic industries.

Semiconductor

• A8 Digital Music Holdings has teamed up with semiconductor firm MediaTek to target the potentially vast number of 3G handsets being produced for the domestic market. A8 Music has agreed to have its proprietary software, A8 Box, embedded in the Taiwanese firm's chipsets destined for 3G mobile telephones made on the mainland. Liu Xiaosong, the founder, chairman and chief executive of A8 Music, said the deal would boost the penetration rate of A8 Box in the mainland mobile market. The company, which owns more than 60,000 original works of music on the mainland, designed the A8 Box software to enable mobile users to easily access and buy content from its large online database and various digital music service providers.

Alternative Energy

• Yingli Green Energy (YGE) has been selected by State Development and Investment Corp. subsidiary SDIC Huajing Power Holding, to supply PV modules for a 10MW on-grid solar plant to be located in Dunhuang, Gansu Province. SDIC Huajing Power Holdings and Yingli made a combined bid to operate the similar-sized government project in Dunhuang.
• LDK Solar (LDK) expects second quarter shipments to come in between 220MW and 230MW, above previously issued guidance of 200MW to 220MW, while revenues are expected to be US$215 million to US$225 million. In the first quarter of 2009, LDK booked a net loss of US$22.5 million on revenues of US$283.3 million and 206MW of wafer shipments. LDK Solar has secured a one-year principal loan of 500 million yuan (US$73 million) from The Export-Import Bank of China, as well as a three-year 500 million yuan (US$73.1 million) loan from Huarong International Trust to support polysilicon plant construction. LDK Solar had more than US$250 million in cash as of June 30. The company's annualized wafer capacity reached 1.5GW by June 30. LDK saw strong demand for wafers in the second quarter and plans to resume wafer plant expansion to reach 2GW of annual capacity by the end of 2009.
• ReneSola Ltd. (SOL) announced that its operating subsidiary, Zhejiang Yuhui Solar Energy Source Co. Ltd., has qualified as a high technology enterprise and will receive a reduced income tax rate of 15 percent for three years, starting January 1, 2009. The current statutory tax rate is 25 percent. China's central government awards the high technology classification on the basis of the number of patents and propriety technologies held by the company, as well as its R&D facilities.
• Trina Solar Ltd. (TSL) has secured a new credit line of US$57 million from Standard Chartered Bank (China) Ltd., bringing Trina's total credit to roughly US$520 million. The company aims to use the credit for raw material procurement and product sales.

Asian markets are trading in the red, following the negative sentiment seen during the U.S. session. Consequently, most Asian based indexes moved lower on Wednesday.

Asian markets were struck by a number of negative events tonight. The first and probably the most important was the Japanese Tankan manufacturing report, which failed to reach market expectations. The quarterly report showed that the manufacturing side of the economy is still in a strong contraction phase, something that would ultimately prolong Japan’s recovery.

Hardware

Telecommunications

Semiconductor

Alternative Energy

Internet

China

Internet

Telecommunications

Media, Entertainment and Gaming

Hardware

Alternative Energy

After 16 weeks, 35% gains and more prayers to assorted deities than you can shake a stick at, the sell-side sentiment fell enough between Friday, June 19 and Friday, June 26 to cause the first “sell” signal since the First Coverage Market Index (i.e., sell-side sentiment) turned bullish at the start of March. And, even though Monday saw sentiment tick up a touch, and there was uncertainty reflected in the sell-side closing out more positions than they opened last week, as they say in the Old West, “The damage, she be done, and we be short!”

Asian markets are advancing at a relatively strong pace today, helped by the positive close on Wall Street yesterday.

The Japanese cash market was pulled higher primarily by the weaker yen, which helps the regional companies that have strong exposure to the foreign consumer markets, and by the gains seen in the commodity market, which aided the heavy-weighted raw material companies.

Asian markets are moving higher, but the gains are still small, following the same pattern seen over the last few days. U.S. futures lacked a clear direction during the Asian session, moving sideways.

The global equity markets failed to move anywhere important over the last period, as investors question the global recovery theme. The major stock market indexes are barely moving, and when they do, big chunks of the move are quickly being retraced. This has caused the global financial market to come to a standstill over the last few days of trading. Investors have probably seen the most volatile market on record.

Following months of back-and-forth efforts, Taiwan Stock Exchange executives indicated that the countries could begin cross-listing exchange-traded funds as soon as July. “About three Hong Kong-listed ETFs will be introduced to Taiwan investors soon,” said Michael Lin, a senior executive vice president of the Taiwan Stock Exchange. The move is the latest, and perhaps most meaningful, in a series of recent co-operations between the long-time rivals.

Over the last year, previously closed shipping routes have reopened, direct flights between Beijing and Taipei have been introduced, and Taiwan has proudly displayed two pandas, a gift from China whose names spell “reunion,” at the Taipei Zoo. But the cross-listing of ETFs is a major step, allowing investors in both regions an opportunity to invest financially in the economic success of their neighbors.

Brazil, Russia, India and China, now collectively known as the BRIC countries, will hold a summit in Russia on June 16^th. Besides the Goldman Sachs invented moniker, these countries have very little in common except for the fact that they believe, to seemingly varying degrees of intensity, that they deserve greater influence in the conduct of world affairs than they currently have.

And given the enormity of US power, as hard-core realists, they know any increase in their power and influence will come at the expense of America’s.