I believe that knowing where the best deals in the world is something of value. A small, highly intelligent investor community that I am privileged to be a part of puts together an index of what we consider to be the most undervalued companies in the world. It's no surprise to me that these don't get media attention because the best opportunities in the world are never "well known" at the time that they are the "most valuable."
The trick is to see value before everyone else does and get in before they do at a great price. At this point, I'm going to tell you what makes up this list and a little about each company. In my opinion, this list will outperform any other list of stocks anyone else could put together over the next five years. Sad, but true.
Asia Entertainment & Resources
recently came under the attack of Tim Sykes. I find AERL better than your comparables here in America especially for the price. The trick of the shorts is just to overwhelm long investors with lots of questionable information --- capitulating longs who aren't sure into selling --- and starting a self-fulfilling prophecy. This, of course, doesn't mention that when Sykes announces a short , all of his followers go out and try to short as well for better or worse.
recently uplisted as predicted. Growth on the cheap; come and get it.
is ridiculously cheap. I own warrants instead -- CCCLW. Kind of surprised they never called me to ask me to convert.
China MediaExpress Holdings
( CCME) in my opinion will be a dividend stock in the next 12 months, is growing, and comes at a P/E less than 8 on growth that makes growth investors salivate.
China Redstone Group
recently went public and they are crushing the guidance that they put out. I have to admit, I underestimated them.
Jade Art Group
is experiencing a selloff. At the current prices, this is tough to sell -- so I figure it must be a buy.
Two oil plays:
is a growing cash machine and is priced to shrink.
China North East Petroleum
came back strong from the trading halt and is cheap on a forward basis.
Sino Agro Food
has institutional interest even though it trades on the PINK sheets because they consistently deliver on their promises so far.
is falling in price likely due to the offering just announced. People worry about the AR. This one is cheap and will be higher a few years from now than it is today.
Universal Travel Group
( UTA) got beat up by John Hempton. Another weak short if you ask me.
is going to be a consistent grower and comes a little more expensive than the others here but I figure it's worth it.
ZST Digital Networks
has a lot of cash and is cheap by my calculations.
Well, there you have it. Now, if you're like me -- you'll find yourself putting your money where your mouth is. Or, you could be like everyone else and talk about the great things you could have done. The choice is yours. Please excuse me while I get back to making a fortune, but before I leave I want to tell you what I would do if I had a billion dollars.
I'd take half of it, and buy up entire companies at these multiples, roll them up into a billion dollar conglomerate and take them public on the Hang Seng / Shanghai and make something like xxx% on that half billion. I'd use the other half a billion to scoop up private placements at the same multiples. I figure I could turn $1 billion into much more -- the trick is being large enough to be able to buy entire companies and then piecing together a conglomerate to take public overseas.
Disclosure: Glen and his investors hold long positions in all the companies mentioned and he takes pride in putting his money where his mouth is.
This commentary comes from an independent investor or market observer as part of TheStreet's guest contributor program. The views expressed are those of the author and do not necessarily represent the views of TheStreet or its management.