Best of the Week
Most Popular
1. Dollargeddon - Gold Price to Soar Above $6,000 - P_Radomski_CFA
2.Is Gold Price On Verge Of A Bottom, See For Yourself - Chris_Vermeulen
3.Dow Stock Market Trend Forecast 2018 - Nadeem_Walayat
4.Gold Price to Plunge Below $1000 - Key Factors for Gold & Silver Investors - P_Radomski_CFA
5.Why The Uranium Price Must Go Up - Richard_Mills
6.Dow Stock Market Trend Forecast 2018 - Video - Nadeem_Walayat
7.Jim Rogers on Gold, Silver, Bitcoin and Blockchain’s “Spectacular Future” - GoldCore
8.More Signs That the Stock Market Will Rally Until 2019 - Troy_Bombardia
9.It's Time for A New Economic Strategy in Turkey - Steve_H_Hanke
10.Fiat Currency Inflation, And Collapse Insurance - Raymond_Matison
Last 7 days
Gold / US Dollar Inverse Trend Relationship Video - 23rd Sep 18
US and Global Stocks, Commodities, Precious Metals and the ‘Anti-USD’ Trade - 23rd Sep 18
Gerald Celente Warns Fed May Bring Down the Economy, Crash Markets - 23rd Sep 18
Top 3 Side Jobs for Day Traders - 23rd Sep 18
Gold Exodus to Reverse - 22nd Sep 18
Bitcoin Trader SCAM WARNING - Peter Jones, Dragons Den Fake Facebook Ads - 22nd Sep 18
China Is Building the World’s Largest Innovation Economy - 21st Sep 18
How Can New Companies Succeed in the Overcrowded Online Gambling Market? - 21st Sep 18
Golden Sunsets in the Land of U.S. Dollar Hegemony - 20th Sep 18
5 Things to Keep in Mind When Buying a Luxury Car in Dubai - 20th Sep 18
Gold Price Seasonal Trend Analysis - Video - 20th Sep 18
The Stealth Reason Why the Stock Market Keeps On Rising - 20th Sep 18
Sheffield School Applications Crisis Eased by New Secondary Schools Places - 20th Sep 18
Precious Metals Sector: It’s 2013 All Over Again - 19th Sep 18
US Dollar Head & Shoulders Triggered. What's Next? - 19th Sep 18
Prepare for the Stock Market’s Volatility to Increase - 19th Sep 18
The Beginning of the End of the Dollar - 19th Sep 18
Land Rover Discovery Sport 'Approved Used' Bad Paint Job - Inchcape Chester - 19th Sep 18
Are Technology and FANG Stocks Bottoming? - 18th Sep 18
Predictive Trading Model Suggests Falling Stock Prices During US Elections - 18th Sep 18
Lehman Brothers Financial Collapse - Ten Years Later - 18th Sep 18
Financial Crisis Markets Reality Check Now in Progress - 18th Sep 18
Gold’s Ultimate Confirmation - 18th Sep 18
Omanization: a 20-year Process to Fight Volatile Oil Prices  - 18th Sep 18
Sheffield Best Secondary Schools Rankings and Trend Trajectory for Applications 2018 - 18th Sep 18
Gold / US Dollar Inverse Correlation - 17th Sep 18
The Apple Story - Trump Tariffs Penalize US Multinationals - 17th Sep 18
Wall Street Created Financial Crash Catastrophe Ten Years Later - 17th Sep 18
Trade Wars Are Going To Crash This Stock Market - 17th Sep 18
Why Is Apple Giving This Tiny Stock A $900 Million Opportunity? - 17th Sep 18
Financial Markets Macro/Micro View: Waves and Cycles - 17th Sep 18
Stock Market Bulls Prevail – for Now! - 17th Sep 18
GBPUSD Set to Explode Higher - 17th Sep 18
The China Threat - Global Crisis Hot Spots & Pressure Points - 17th Sep 18 - Jim_Willie_CB
Silver's Relationship with Gold Reaching Historical Extremes - 16th Sep 18
Emerging Markets to Follow and Those to Avoid - 16th Sep 18
Investing - Look at the Facts to Find the Truth - 16th Sep 18
Gold Stocks Forced Capitulation - 15th Sep 18
Hindenburg Omen & Consumer Confidence: More Signs of Stock Market Trouble in 2019 - 15th Sep 18
Trading The Global Future - Bad Consequences - 15th Sep 18
Central Banks Have Gone Rogue, Putting Us All at Risk - 15th Sep 18
Gold Price Seasonal Trend Analysis - 14th Sep 18
Growing Number of Small Businesses Opening – and Closing – In the UK - 14th Sep 18
Gold Price Trend Analysis - Video - 14th Sep 18
Esports Is Exploding—Here’s 3 Best Stocks to Profit From - 13th Sep 18
The Four Steel Men Behind Trump’s Trade War - 13th Sep 18
How Trump Tariffs Could Double America’s Trade Losses - 13th Sep 18
Next Financial Crisis Is Already Here! John Lewis 99% Profits CRASH - Retail Sector Collapse - 13th Sep 18
Trading Cryptocurrencies: To Win, You Must Know Where You're Wrong - 13th Sep 18
Gold, Silver, and USD Index - Three Important “Nothings” - 13th Sep 18
Precious Metals Sector On a Long-term SELL Signal - 13th Sep 18
Does Gambling Regulation Work - A Case Study - 13th Sep 18
The Ritual Burial of the US Constitution - 12th Sep 18
Stock Market Final Probe Higher ... Then the PANIC! - 12th Sep 18
Gold Nuggets And Silver Bullets - 12th Sep 18
Bitcoin Trading - SEC Strikes Again - 12th Sep 18

Market Oracle FREE Newsletter

Trading Any Market

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

© 2005-2018 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

6 Critical Money Making Rules