NEW YORK (
) -- The trick to making a lot of money in the stock market with the least amount of personal effort results from the ability to own parts of underpriced small companies as they transform to larger companies.
Rodman & Renshaw
hosts an annual global investment conference. This year is no different as it's taking place Wednesday through Friday in New York. Why should you care? Because the most undervalued opportunities in the world stay that way until people find out about them and bid up the price.
The companies I mention in this article are just a few companies that I've picked out from the Asia track that I feel you're unlikely to lose money on if you choose to own at the current price.
China Kangtai Cactus Bio-Tech
intends to launch patented cactus-based cigarettes in 2009 and is priced to shrink at $30 million. Good thing the company's been growing, and I expect this growth to continue.
After talking to the chief financial officer of
Tuesday and hearing word that China is hiking fuel prices, not to mention the capacity expansion it's bringing online, I find myself short on reasons not to own.
reaffirmed guidance and shot up 5%. The great news is that it's still trading shamefully low, especially when you chalk up that most of its price is backed in cash and forward guidance includes strong growth. This is most definitely priced for bankruptcy and is nowhere near it as far as I can tell.
Those are just three special situations: one that has a new, potentially blockbuster product; one that is adding capacity, and one that has a strong cash backing.
But there is more.
China North East Petroleum
China Information Security Tech
( CPBY) are all priced to shrink and are all set to grow as well. Just a few, there are a whole lot more.
Rodman & Renshaw might just be throwing one of the most profitable investment conferences of the year. That's to say if you know what you're looking for. In the last four months, Rodman & Renshaw is up more than 500%. That ought to at least wet your lips. It feels like Christmas in September.
At the time of publication, Glen Bradford was long China Kangtai, Longwei, Jiangbo, Skystar, Puda, Orient Paper and China North East. Bradford is the CEO of ARM Holdings LLC; a hedge fund advisory company. He's pursuing an MBA at Purdue University and is trading his entire tuition in the stock market as well as the tuition of his roomate. His goal is to buy the most undervalued companies that are making money and set to make more money that he can find. In March 2009, he was quoted for saying, "Uncertainty will certainly work for me."