Profiting from the 2008 Beijing Olympic Games
August 12, 2008
As you all know, the 2008 Beijing Olympics is upon us. I have stayed up the past few nights watching some of the action, did you guys see those women swimming? Their shoulders are almost twice the width mine (lol). During my observation of this spectacle, a thought came to mind. Of course, being a natural investor — It had to be something related to my niche. $40 Billion USD has been used to fund the city in preparation for these Olympics. Only a fool would be blind to see the potential profit that these Olympics can bring! Hmmmm….But how?
There has to be some way that I can benefit from the billions of people watching around the world, and thousands upon thousands travelling to witness it live.
Sitting there scratching my forehead, I came to a quick and savvy conclusion. AIRLINES! Quickly running to my laptop, I searched up China’s 2 major airlines: ZNH, and CEA on Finziv.com (easily the best for stock market charts). I suddenly realized the potential in this company.
- Currently equally priced to it’s 52 week low of 16.39
- Highly oversold and due for a correction
- Will profit from Olympic sales
- Crude Oil prices on the decline due to BUSH ADMITTING THAT USA HAS MORE OIL THAN ORIGINALLY THOUGHT
Now, you have to ask yourself — Do you want to take a chance at losing 3% vs. a possible gain of 20%+ over a one week’s span? We all know how volatile Chinese stocks are… so its up to you and your risk tolerance. When taking a chance, just remember, The Mad Genius of Mutual Funds. This man is the building block for the fundamental “BUY LOW, SELL HIGH” principle.
For me, it was a simple decision. In China, there are over a billion people (1/6th of the world’s population). Only two main competitive principle carriers exist, ZNH (China Southern Airlines) and CEA (China Eastern Airlines). How long before this stock surges astronomically?
One last thought. The 52 Week High for this stock is $99.70.
What do you take into consideration when Investing your money?
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August 12th, 2008 at 2:52 pm
beautiful blog, post very interesting, greetings from italy!
Hi Dino!
August 13th, 2008 at 1:05 pm
Hello Italia!!!
I’m very happy to see you guys are reading my blog from over there! Beautiful country, beautiful people, beautiful life!
August 14th, 2008 at 12:57 am
Some interesting fundamentals here, but technically I would probably wait until ZNH breaks the upper trend line and then passes the previous high.
August 14th, 2008 at 6:51 am
Great site, very well ordered and really good information! Thank you for the reading!
August 14th, 2008 at 9:26 am
Thanks for the warm comments my fellow readers. Really appreciate the support!
August 14th, 2008 at 1:54 pm
What a perfect thought! You might also get a bunch of residual tourist travel to Beijing after the Olympics are over for those who want to see the “new and improved China” without all the crowds. The Olympics have a way of instilling confidence in a city, so travelers might be thinking…
“If Beijing is good enough for the Olympics, then its good enough for me”
Great Idea!
Jenn
August 16th, 2008 at 2:36 am
nice site and slick post.
i rather like the fact that instead of merely viewing the olympic games as the worldwide sports spectacle that it is, you adjusted your point of view, and tried to figure out how to make that event work for you. that’s a great attitude to apply to many other events and incidents going on all around us. 
August 17th, 2008 at 8:50 pm
$40 billions is alot!! But the stock market in China… is not very profitable at the moment.
August 18th, 2008 at 12:00 am
Alyssum, you are right…however remember, you want to buy something when it is at it’s bargain price, not when it’s already mature and well into the green!
August 18th, 2008 at 9:05 pm
$40 Billion USD wow!
August 20th, 2008 at 11:46 pm
I always marvel at how well China is doing, what with their currency being pegged to the dollar. It will be interesting to see how much the Olympics swells their coffers, in dollar terms.
August 21st, 2008 at 9:51 am
Yes you are thinking through the right way. I have a doubt Mike. How this calculation can help a long term investor? The profit from such situation will rise the price of some companies but that should be in a temporary basis. What do you think about that?
Such occasions certainly help traders but the case of investors are little different… how do you feel about my view or am I wrong?
Sherin - http://investinternals.blogspot.com
August 22nd, 2008 at 6:52 am
I agree Sherin, for me this stock is temporary and merely a speculative play. It only accounts for about 5% of my overall investment… I see it rising within the next few weeks (post Olympics) to around 20 where I will sell.
Can’t say no to bargains
August 22nd, 2008 at 10:57 am
YGE up 12% since I reiterated my buy rating on it… patience is key to championing the market!