Weekly Trade Alert for January 17, 2010
VisionChina Media (NasdaqGM: VISN) -- See Analysis

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The Two Best Trades for 2010
Famed investor Porter Stansberry thinks natural gas and interest rates are about to jump. If he's right, United States Natural Gas (NYSEArca: UNG) and Eaton Vance Senior Floating Rate Trust (NYSE: EFR) are two promising trades.

Short This Currency in 2010
The U.S. dollar took a tumble in 2009, but it's the euro's turn this year. For an easy way to profit from any euro erosion
, consider Market Vectors Double Short Euro ETN (NYSEArca: DRR). This ultra-short security is engineered to move twice the daily direction of the euro. Just don't hang on to these leveraged notes for long. They're designed for traders, not investors -- so get in and get out, then rinse and repeat.

Profit from Soaring Construction Prices
Our friends at Daily Wealth think construction materials are about to soar. Timber could lead the way -- and forest product companies like Weyerhaeuser (NYSE: WY) and Rayonier (NYSE: RYN) offer investors a good way to profit from rising prices.


+9,569% Gains in 52 Weeks
We know it sounds crazy, but this tiny stock just turned every $500 investment into $47,845 in 2009. That's because this firm is just one of only five companies with licenses to capitalize on a legally-addictive product in one of the most profitable and fastest growing markets on the planet: coffee. The company is called Diedrich Coffee Inc. (NasdaqCM: DDRX) -- and the price of its shares skyrocketed nearly +10,000% last year!

$100 Oil in 2010
One prominent oil speculator sees crude hitting $90 this quarter and $100 by the end of the year. The simplest way to double down is to trade Ultra DJ-AIG Crude Oil ProShares (NYSEArca: UCO).
Just don't hang on to these leveraged shares for long. They're designed for traders, not investors -- so get in and get out, then rinse and repeat.

Time to Trade Platinum?
This rare metal is on the move -- advancing +23% in the last 4 months alone. But it's a volatile, thin market: platinum suffered a -
65% drop from peak to trough in 2008. With that in mind, here are three ways to profit as prices move higher -- and one way to profit if they tank.

More on our Weekly Trade Alert

VisionChina Media (NasdaqGM: VISN)

By: Paul Goodwin
Analyst and Editor of Cabot China & Emerging Markets Report

Published January 14, 2010

With what I think is a fine sense of irony, my investment idea today is VisionChina Media (VISN), a Chinese company that has over 82,000 video screens in buses and subway trains in 18 Chinese cities. What really sets its product apart from other out-of-home Chinese advertisers like Focus Media is that the broadcasts are digital, real-time programming that can be customized to show either local or national weather, sports and breaking stories.

Because content is local and fresh, viewership is increased, which allows VisionChina to charge for advertising time just like a broadcast TV station. The company forges alliances with local broadcast stations to supply content.

Financial results have been outstanding, especially for a company founded just in 2005. 2007 sales were up 659% over 2006, and 2008's gain hit 254%. Earnings turned positive in Q2 2007 and year-over-year growth has fallen in the last couple of quarters only because Q2 and Q3 2008 gains were insanely huge. After revenue of $104 million in 2008, analysts expect 2009 sales to hit $122 million with earnings of 37 cents a share.

VISN has been trading sideways since the beginning of December, which has created a nice base for further advances. The stock is a little too low-priced for inclusion in the Cabot China & Emerging Markets Report, but buying on any breakout above 12 should prove profitable, as that will bring the stock into range of the institutional investors who actually move the market.

Editor's Note: Paul Goodwin has the Cabot China & Emerging Markets Report heavily invested in China right now, but the whole emerging markets universe is his oyster. Paul recommends profitable stocks from around the developing world in his search for good investment opportunities. So if you'd like to have that kind of advice and perspective—and profits—just click here and we'll get you started with a no-risk trial subscription.

VisionChina Media Inc.
1st Floor Block No 7 Champs Elysees
Nongyuan Road, Futian District
Shenzhen, 518040 China
86 755 8293 2222

Index Membership: N/A
Sector: Services
Industry: Advertising Agencies
Full Time Employees: 535

Paul Goodwin
Emerging Markets Specialist, Analyst and Editor of Cabot China & Emerging Markets Report

A researcher and writer for over 30 years, Paul Goodwin has been a member of the Cabot investment team and editor of Cabot China & Emerging Markets Report since 2005. Under Paul’s stewardship, Hulbert Financial Digest rated Cabot China & Emerging Markets Report the number-one-rated newsletter of 2006 with a 78.6% gain for the year, the number-one-rated newsletter of 2007 with a 74.1% return, and the top-performing investment adivsory for five years with a 23.0% annualized return as of 12/31/09. Cabot China & Emerging Markets Report was also named 2007 Investment Letter of the Year by Peter Brimelow of MarketWatch.

Note: The article was originally featured in the Cabot Wealth Advisory