Companies on the Rise
It is always difficult to predict which companies will be the next big thing, but that is a large part of what stock market strategy is all about. A good investor sees potential in a company that the market currently undervalues.
Here are some companies you might want to watch for, and possibly buy shares of, in the future.
Beacon Power (BCON)
This "smart grid" energy company is a steal at thirty cents a share. It recently signed a $2.8 million contract with the U.S. Department of Energy to build a flywheel energy storage system, which can create and store energy via a rapidly rotating wheel. Flywheel technology is not entirely new (it was used to power "gyrobuses" in 1950s Sweden) but the company is betting that it can be a piece of the puzzle in solving worldwide energy needs.
ICICI Bank (IBN)
This Indian bank has a larger international balance sheet than any other, according to Wikipedia. It is considered one of India's big four banks, and specifically advertises to non-resident Indians abroad. Currently, it is trading at $45.11 a share. Seeking Alpha says it's deeply undervalued.
China Life Insurance Co. (LFC)
This is the largest insurance company in China. It was also the first Chinese insurer to be publically traded, and during its initial stock offering it drew bids for 49 times the available stock, according to Wikipedia. It is now the world's #2 insurer, behind American International Group (AIG.) It is also the world's most valuable insurance company, according to this list. It is currently trading at $61.70 a share, which is great value according to Seeking Alpha. However, keep in mind that its stock price has declined a moderate 15% since 2009.
Yes, this company isn't exactly up-and-coming, and no, it isn't available to be publically traded. But a recent valuation by Goldman Sachs put the company's value at $50 billion. The influential investment bank is introducing a "special purpose investment vehicle" so that select clients can buy into Facebook. This has been called a "backdoor IPO," since it is well-known that Facebook CEO Mark Zuckerberg is wary of the oversight that being a publically traded company would bring.
However, in a new wrinkle, Goldman Sachs is only allowing its foreign clients to take part in this investment, since there may be a Securities and Exchange Commission regulation against it in the U.S. If Facebook is ever available for the average U.S. investor to buy shares of, believe us, you'll hear about it.