Date : October 24, 2018
With Chinese leaders beginning to talk about major stimulus programs to combat the impact of tariffs from the White House, it’s time to look to capitalize on the likelihood of a jump in foreign money flows back into China and some ramped up infrastructure investment in China by Beijing.
For that thesis, we are going to look at three interesting stocks: Caterpillar Inc. (NYSE:CAT), ASIA BROADBAND ORD (OTCMKTS:AABB), and BHP Billiton plc (NYSE:BBL).
Caterpillar Inc. (NYSE:CAT) manufactures and sells construction and mining equipment, diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives for construction, resource, and energy and transportation industries.
The company just reported Q3 earnings on Tuesday, with shares diving in response as it negotiates a difficult task of framing tough Chinese data over recent months. But the view forward could be quite interesting as new stimulus measures come into place.
Its Construction Industries segment offers asphalt pavers, backhoe loaders, compactors, cold planers, compact truck and multi-terrain loaders, forestry excavators, feller bunchers, harvesters, knuckleboom loaders, motorgraders, pipelayers, road reclaimers, site prep tractors, skidders, skid steer loaders, telehandlers, track-type loaders, wheel excavators, and track-type tractors.
The company’s Resource Industries segment provides electric rope and hydraulic shovels, draglines, track and rotary drills, hard rock vehicles, large track-type vehicles, large mining trucks, longwall miners, large wheel loaders, off-highway trucks, articulated trucks, wheel tractor scrapers, wheel dozers, landfill compactors, soil compactors, machinery components, electronics and control systems, select work tools, and hard rock continuous mining systems.
Its Energy & Transportation segment offers reciprocating engine powered generator sets; reciprocating engines; integrated systems used in the electric power generation industry; turbines, centrifugal gas compressors, and related services; integrated systems and solutions for the marine and oil and gas industries; remanufactured reciprocating engines and components; and diesel-electric locomotives and components, and other rail-related products and services.
Its All Other operating segments manufactures filters and fluids, undercarriage, tires, rims, ground engaging tools, fluid transfer products, precision seals, and rubber sealing and connecting components; parts distribution; and digital investments services.
Caterpillar Inc. (NYSE:CAT) pulled in sales of $14B in its last reported quarterly financials, representing top line growth of 23.7%. In addition, the company is battling some balance sheet hurdles, with cash levels struggling to keep up with current liabilities ($8.8B against $28.3B, respectively).
ASIA BROADBAND ORD (OTCMKTS:AABB) frames itself as a company that, through its wholly owned subsidiary Asia Metals Inc., is a resource company focused on the production, supply and sale of precious and base metals, primarily to Asian markets.
The company generated sales of $1.1M, according to information released in its most recent quarterly financial report. That adds up to a sequential quarter-over-quarter growth rate of 10% on the top line.
This is possibly the most interesting of the lot simply because it presents such a deep value option with so much potential upside.
The Company utilizes its specific geographic expertise, experience and extensive industry contacts to facilitate its innovative distribution process from the production and supply of precious and base metals in Guerrero, Mexico, to our client sales networks in Asia.
This vertical integration approach to sales transactions is the unique strength of Asia Broadband and differentiates the Company to its shareholders.
Asia Broadband, Inc. operates as a digital education media and technology services company. It offers classroom based education services; and content services on Internet broadband network in the People’s Republic of China. The company was formerly known as Gemini Marketing, Inc. Asia Broadband, Inc. was incorporated in 1996 and is based in Las Vegas, Nevada.
Note, the company also has a very strong balance sheet, with cash levels far exceeding current liabilities ($1.4M against $66K).
BHP Billiton plc (NYSE:BBL) frames itself as a company that discovers, acquires, develops, and markets natural resources worldwide.
It operates through four segments: Petroleum, Copper, Iron Ore, and Coal. In addition, the company has a strong balance sheet, with cash levels far exceeding current liabilities ($21.8B against $18.9B).
The company explores for copper, silver, lead, zinc, molybdenum, uranium, gold, and iron ore, as well as metallurgical and energy coal, and oil and gas properties. It is also involved in mining, smelting, and refining of nickel; the provision of freight, finance, administrative, trading, marketing, and other support services; and potash development activities.
The company was formerly known as BHP Limited and changed its name to BHP Billiton Limited in July 2001. The company was founded in 1851 and is headquartered in Melbourne, Australia. BHP Billiton Limited is a subsidiary of BHP Billiton Group Limited.
BHP has had a rough past week of trading action, with shares sinking something like -5% in that time. That said, chart support is nearby and we may be in the process of constructing a nice setup for some movement back the other way. Over the past month, shares of the stock have suffered from clear selling pressure, dropping by roughly -8%.
BHP Billiton plc (NYSE:BBL) generated sales of $28.4B, according to information released in the company’s most recent quarterly financial report. That adds up to a sequential quarter-over-quarter growth rate of 1.4% on the top line.