Best of the Week
Most Popular
1.The Greatest Stock Market Crash Of Your Life Is Just Ahead… – Warns Harry Dent - GoldCore
2.Budget 2016: Borrowing, Lifetime ISA, House Prices, Economy, Syria, Brexit and Stocks - Nadeem_Walayat
3.Gold Price Intermediate Top - Clive_Maund
4.Brussels Terror Attacks, Death of the European Union, BrExit Wake up Call - Nadeem_Walayat
5.Stock Market Maybe This Time is Different? - Tony_Caldaro
6.UK House Asking Prices Break Above £300k! Housing Market Paralysis - Nadeem_Walayat
7.A Big Reason Why Silver Price Is Set To Soar - Hubert_Moolman
8.The Financial Crisis Has Just Begun; Is The American Dream Is Over? - Chris_Vermeulen
9.Gold Stocks Spring Rally - Zeal_LLC
10.GLX, GLDX, Baby Gold Bull Market Stillborn? - Rambus_Chartology
Last 7 days
arclays 100% Mortgage Pours Fuel on UK House Prices Bull Market - 5th May 16
Central Planners Versus Contrarian Logic - 5th May 16
Euro Desperation will achieve Self Destruction - MAP Wave Analysis - 5th May 16
Stocks Extended Their Short-Term Downtrend But Will They Continue Lower? - 5th May 16
Monetary Liquifaction, Gold And The Time Of The Vulture - 5th May 16
US 2016 Election Is a Global Risk - 5th May 16
A Few Facts About Gold That Nay-Sayers Conveniently Ignore - 5th May 16
Save the Environment and Your Retirement: Sell Tesla - 4th May 16
Silver Bullion Has Key New Player – China Replaces JP Morgan - 4th May 16
Gold Stock Picks Up Over 400%, What's Next ? - 4th May 16
U.S. Treasury Secretary Jack Lew: Puerto Rico Needs Urgent Action - 4th May 16
Technical Trading Mastery for Traders & Investors - 4th May 16
Derivatives Crisis Of Banks…Worldwide - 3rd May 16
Bank of North Dakota Soars Despite Oil Bust: A Blueprint for California? - 3rd May 16
Stock Market Technical Analysis - 3rd May 16
Central Banks Need a Higher Gold Price : Hello GATA - 3rd May 16
A Currency War Battle That Europe and Japan Can’t Afford To Lose - 3rd May 16
When the Truth is Found to be Lies, Confidence in Currency Dies - 2nd May 16
How Brexit Could Help All of Europe - 2nd May 16
US House Prices Outpacing Official Inflation Rate, Household Income - 2nd May 16
USD Still Declining... - 2nd May 16
Gold & Silver Rally Huge as Central Bankers & Analysts Flub - 2nd May 16
Stock Market Bounce Day - 2nd May 16
Stock Market Uncertainty Following Two-Month Long Rally - Will It Continue? - 2nd May 16
Stock Market Correction Underway "Upside Objective Reached" - 2nd May 16
USD, Yen and an ‘Inflation Trade’ Update - 2nd May 16
Gold Commitments of Traders and More - 1st May 16
The Magic of Gold Ratio Charts - 1st May 16
Consensus Forming: China Heading Back Into Financial Crisis - 30th Apr 16
The Next Technical Price Targets for Gold & Silver - 30th Apr 16
Stock Market Downtrend Should be Underway - 30th Apr 16
Gold And Silver – A Clarion Alarm Call For All Paper Assets - 30th Apr 16
US Economic Statistics LIES, LIES AND OMG, MORE LIES - 30th Apr 16
Stock Market Strong Elliott Wave Relationship is Developing - 29th Apr 16
Fed's Kaplan: Brexit to Factor in US June Interest Rate Decision - 29th Apr 16
Silver Miners Strong in Grim Q4 - 29th Apr 16
Is Silver a better bet than Gold in the Near Future? - 29th Apr 16
How to Use the CoT Report in Gold Investing? - 29th Apr 16
Sri Lanka is Intriguing: Areas to Consider for Value Investing - 29th Apr 16
Gold “Chart of The Decade” – Maths Suggest $10,000 Per Ounce Says Rickards - 29th Apr 16
Are We or Are We Not in a New Gold Bull Market? - 29th Apr 16
Silver: The “Five Year Plan” and the Great Leap Forward - 28th Apr 16
Michael Hudson: The Wall Street Economy Has Taken Over The Economy and Is Draining It! - 28th Apr 16
AUD/USD - Trend Reversal or Just a Bigger Pullback? - 28th Apr 16
A Gold Revaluation Could Transform Your Financial Status - Overnight - 28th Apr 16
Monetary Policies Misunderstood - 28th Apr 16
Gold Bullion vs Gold Miners - 28th Apr 16
OECD Suggests BrExit Would Cut Net Migration by 1.2 Million by 2030 - 28th Apr 16
MP Naz Shah Punished for Tweets Made During Israel's Genocide of Gaza Palestinian People - 28th Apr 16

Free Instant Analysis

Free Instant Technical Analysis


Market Oracle FREE Newsletter

Catching a Falling Financial Knife

Investing In Asia - Buy the Technology, Not the Trend

Stock-Markets / Emerging Markets Nov 23, 2007 - 12:21 AM GMT

By: Yiannis_G_Mostrous

Stock-Markets

Best Financial Markets Analysis ArticleYiannis G. Mostrous and GS Early write: There are two big concepts on growth investors' minds today: Asia and green tech. And for good reason; they both reinforce one another.

India and China is each turning out 600,000 engineers and scientists a year. In comparison, the US is graduating about 50,000.


The UK scientific community is also disturbed by the growing lack of interest current college students have for the sciences. And if you're trying to rationalize China 's and India 's numbers by noting their populations are much larger, well, they're not an order of magnitude larger. It doesn't wash.

What that means is in the next five years or so, much of the technical talent that has comfortably existed in the US and Europe will be moving to Asia : software, hardware, biotech, electronics, chip design and manufacturing, you name it.

What's more, large Asian nations are also using this technological boomlet and applying it to the challenges of supplying energy to billions of people as oil becomes scarcer, the planet warms and importing fuel to sustain a major country's productivity becomes economic suicide. These countries are going green not to save the planet but to build sustainable economies that won't swoon when oil or coal prices soar.

In the US and Europe , two of the world's largest consumers of energy, it's a green tech trend. In Asia , it's an economic model for capturing the brass ring of economic leadership in the 21st Century. But the semantics or even the intent isn't really the point.

The point is green tech is a global long-term trend, and one of the most important enabling technologies for green tech to succeed is nanotechnology. Although nanotech tends to be a pretty fuzzy concept for anyone not outfitted in a lab coat, it fundamentally boils down to allowing scientists and engineers to manipulate and construct properties at the molecular level with reliability and consistency.

Here's a tangible analogy: Think of an ear of corn. Imagine spreading butter on the ear versus buttering each separate kernel on the ear. The surface area you have to cover increases exponentially.

Up to now, most of our technology has been about dealing with properties as an ear of corn. Nanotech allows us to manipulate each kernel.

Increasing the surface area in such a way and manipulating individual “kernels” changes the interactions, efficiencies and performance of everything that is altered: nanotubes, nanoexplosives, nanolithography, nanomaterials, etc. Or, in more practical terms, new drug delivery systems and diagnostics; new ways to make computers smaller, faster and more energy efficient; better batteries; stronger fabrics; and more efficient fuels and materials.

Although this work is going on across the globe, Asia—Singapore, China, India and Japan, in particular—and Australia are quickly emerging as leaders in the new generation of work that will rupture the current status quo of the energy, electronics, pharmaceuticals and textiles industries for the next century. And it's happening now.

My colleague Yiannis Mostrous asked me to pen this issue of Growth Engines to give you the lowdown on how forward-thinking companies, from huge multinationals to development stage companies, are rewriting commerce for the coming decades. The following are a handful of companies I hold in my portfolios in my subscription service, The Real Nanotech Investor ( www.realnanotechinvestor.com ), that are incorporating nanotech into their existing product lines to enhance their market positions or are developing breakthrough products that may well be the ground floor opportunities about which all growth investors dream.

Three of the biggest players in Asia are actually German companies— Siemens , BASF and Bayer . German diplomacy has been instrumental in helping German companies develop very close business ties to markets in China and Singapore , in particular.

Singapore has been actively beefing up its research and development (R&D) efforts with the goal to be the brains behind the economic brawn in Asia . And this German trio has sunk significant resources in setting R&D facilities in Singapore . It also helps that the tax laws in Singapore are much more favorable than they are in Germany , so it makes good business sense for them to do so.

The companies get access to these markets and have an eager, educated group of scientists with state-of-the-art facilities (usually subsidized by the government). Singapore gets access to some of the top scientists and engineers in the world. That puts Singapore—or China or India or Australia—on the world stage years before that could organically “grow” a generation of world-class technicians.

Remember, scientists are interested in science, not geography. If they can work at the highest levels on important projects, they go; borders are immaterial.

In Australia , it's been more of an organic process of developing talent, but it also has two great advantages: It's an English-speaking nation with significant ties to the US and UK , and its neighbors are some of the fastest-growing economies in the world. And its scientists are relatively inexpensive, so start-ups are popping up like mushrooms after a spring rain.

Two development stage Aussie companies worth looking into are pSivida and Starpharma . Both are in the drug delivery business.

The former has significant backing from drug giant Pfizer and UK-based QinetiQ . It also has a proprietary drug delivery system in Phase III trials for pancreatic cancer. The company is now controlled by the inventor of its leading product line, so there's little risk that management is will to throw the company on the tracks to make a few bucks pitching a nanotech fantasy.

The latter has developed VivaGel , a salve that can be applied to women's genitals to prevent the transmission of Herpes and HIV. Its dendrimer-based technology also is being developed as safer and more effective spermicidal for use on condoms; it recently inked a development deal with Durex , the world's leading condom maker and is in negotiations with another major condom maker.

It also has deals with the leading cardio-pulmonary clinic in Australia and a Merck & Co subsidiary doing siRNA research for cancer-fighting applications. And its potential was echoed by its peers just last week when it was awarded for nanotech excellence in the product category for VivaGel at the National Nano Engineering Conference in Boston .

Suffice it to say, there are some big things happening Down Under.

Last, I would be remiss not to mention the forefathers of miniaturization, the Japanese. As Asia develops into a regional power and the enmity of the 1930s and '40s fades, inter-Asian trade deals are growing rapidly and Japan is a key beneficiary. In this space, Toshiba , Hitachi and NEC are the ones to watch.

If you're a “Buy American” kind of investor, check out ultracapacitor maker Maxwell Technologies , which has growing its business smartly in China and has significant business in Europe in the green power sector.

Also, Motorola is a mobile phone fixture in Asia and continues to have a wide and short pipeline from lab to market, which is crucial in this sector.

GS Early is editor of The Real Nanotech Investor and the free e-zine Nanotech Investor News , and executive editor of www.kciinvesting.com .

By Yiannis G. Mostrous
Editor: Silk Road Investor, Growth Engines
http://www.growthengines.com

Yiannis G. Mostrous is an associate editor of Personal Finance . He's editor of The Silk Road Investor , a financial advisory devoted to explaining the most profitable facets of emerging global economies, and Growth Engines , a free e-zine that provides regular updates on global markets. He's also an author of The Silk Road To Riches: How You Can Profit By Investing In Asia's Newfound Prosperity .

Yiannis_G_Mostrous Archive

© 2005-2016 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

Catching a Falling Financial Knife