Stop being a spectator and start competing this summer. I’m not suggesting winning gold in Beijing. I’m suggesting winning green with these Olympic related investments:
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Gold Medal: Suntech Power Holdings (STP)
Think Gold. Think Sun. Suntech Power Holdings designs, develops, and markets an array of photovoltaic cells and modules. Founded in 2001, STP’s innovation and foresight has made them the world leader in solar energy and the official solar sponsor of the Beijing Olympics. Expect positive headlines about Suntech and solar energy as the world tunes in to the opening ceremonies in Beijing’s Bird’s Nest Stadium, beautifully powered by Suntech solar panels. The stocks of solar related companies have been very volatile over the last year. A covered call investing strategy can take advantage of some of that volatility. Suntech currently has a covered call investing position with a potential return of 8.7% in only 36 days.
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More than just a two-week solar flare up, the Chinese government’s commitment to clean technology, specifically solar power, bodes well in the long term for companies specializing in renewable energy. Other clean energy companies that should benefit from the Beijing Olympics include LDK Solar (LDK), Powershares Cleantech Portfolio (PZD), Powershares Wilderhill Clean Energy Portfolio (PBW), and Trina Solar Limited (TSL). A covered call investing position for LDK currently has a potential return of 11.1% and TSL has a covered call investing position with a potential return of 11.4%, both in only 36 days.
Silver Medal: General Electric (GE)
Looking for a silver lining in a not so hot U.S. market, look no further than General Electric. GE has and will continue to provide support for over 350 infrastructure projects in and around Beijing, including work at all 37 Olympic venues and 168 commercial buildings. GE, with its focus on clean technology, will benefit from the worldwide clean energy exposure in these games. The enormous publicity generated by its broadcast subsidiary, NBC, exclusive network of the games in the US, will provide ample opportunity for promoting its good works to millions of viewers. The price of GE’s stock has been sliding over the last several months, and a good way to potentially generate income and also have protection if the event of a falling stock price is through covered call investing. A covered call investing position for GE is currently available with a potential return of 3.4% – and in only 36 days.
Strong even without its Olympic exposure, GE stock has been a consistent producer of dividends for years. Other high profile companies that look to receive an economic boost from the games include Johnson & Johnson (JNJ), Eastman Kodak (EK), United Parcel Service (UPS), and Coca-Cola (KO). Covered call investing positions are available for JNJ, EK, UPS and KO with potential returns of 1.2%, 3%, 4% and 1.2%, respectively.
Bronze Medal: Sohu.com Inc. (SOHU)
American athletes should be passing up the competition on the track and in the pool, but China has passed the world in the number of citizens who use the Internet. As the games approach, many of the 225 million Internet users in China will be clamoring for instant updates on events and athletes. Sohu Com (SOHU), the official Chinese portal for the 2008 Olympics, stands to benefit most and currently has a covered call investing position with a potential return of 9.3%.
With 60 million new Chinese web surfers estimated for next year, the upward trend should continue for Chinese web technology stocks. Another company that should benefit from increased Internet traffic is Baidu.com (BIDU), China’s leading search engine. Baidu.com currently has a covered call investing position with a potential return of 8.9%.
Copper Medal: Home Inns and Hotel Management (HIMM)
We’ve added a medal to accommodate Home Inns and Hotel Management, a leading economy hotel chain in China. 3.5 million visitors are expected to descend on Beijing for the Olympics, and they all need a place to stay. This is more than just a two-week tourism spike, however. International tourism increased 9.6% in 2007, and travel experts predict an even steeper increase in years to come. Domestic travel has also jumped dramatically.
Of course, HIMM is not the only hotel chain in Beijing. Other companies with a strong presence, poised to reap big profits from Olympic crowds include Mariott (MAR) and Starwood Hotels (HOT). Mariott and Starwood Hotels currently have covered call investing positions with 4.3% and 7.4% potential returns, respectively.
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[tags] Beijing, Olympic, Bird’s Nest Stadium, solar, clean energy, NBC, China, Internet, Hotel, BIDU, Baidu.com Inc., EK, Eastman Kodak Co., GE, General Electric Co., HOT, Starwood Hotels & Resorts Worldwide Inc., JNJ, Johnson & Johnson, KO, Coca-Cola Co., LDK, LDK Solar Co. Ltd. ADR, MAR, Marriott Intl. Inc., PBW, PowerShares WilderHill Clean Energy ETF, PZD, PowerShares Cleantech ETF, SOHU, Sohu.com Inc., STP, Suntech Power Co. Ltd., TSL, Trina Solar Ltd., UPS, United Parcel Service Inc., covered call investing, covered call investment strategy, investment strategy, iron condor, poweroptions, stock option trading, stock options [/tags]