August 2, 2010 – A Busy Signal at China Mobile

Featured Trades: (CHL)

2) A Busy Signal at China Mobile. People often ask why I bother to produce this newsletter. Sure, the private jets to the Kentucky Derby, the free tickets to heavyweight fights in Las Vegas, and the endless dinner invitations in every major city in the world are all nice. But for me the real incentive is the great tips I get from readers from every corner of the globe. I was casting around for good, stable dividend plays in China, as I believe that in a low interest world, high dividend paying companies are going to become increasingly sought after. Out of the blue came a suggestion to look at China Mobile (CHL). The company has the monopoly for providing cell phone services in the Middle Kingdom, has a staggering 544 million customers, and is gaining an amazing 5 million new subscribers a month. Revenues are expected to rise by 17% this year, providing an extremely safe dividend of 3.3%. The stock chart might as well be one for a high yielding utility, as it has risen 10% YTD, versus a 9% fall for the Shanghai index. If you want to learn more about CHL, please revisit my interview with Jim Trippon of the China Stock Digest by clicking here). Better put this stock on your speed dial.

China Mobile Ltd.