I remembered in an old movie, that when someone wanted to make fortune, the main character was told "Go east you man."
Well, the power during this recent sell off is in China, Taiwan and India Firms which fortifies U.S. EquitiesNo question, American ingenuity and corporate was the reason why the top 50 performing companies were in the top 50 performance wise.
However, the list of premier growth stocks is also taking a small bow to the awesome strength of consumer spending, digital advancement and entrepreneurial spirit in America's huge trading partners in the East.
As the Thursday close, as many as 10 of the 50 stocks are headquartered in India, Hong Kong, Taiwan or mainland China. It's a positive development for investors. It expresses the fact that Chinese consumers are becoming more and more important to the global economy.
A previous frequent recommendation of The Insiders Club, EDU and formerly No. 1 on the list for multiple weeks, TAL Education is an excellent example of how a U.S. equities investor can capitalize on the strength of household spending on private education.The Beijing-based cram school operator reported an 81% jump in fiscal fourth-quarter revenue to $316.3 million. That's even better than the already sharp average gain of 53% on a year-over-year basis in the prior five quarters.
On an annual basis, revenue has risen almost 30-fold, from $37 million in FY 2009 to $1.04 billion in FY 2017 (ended in February this year). The consensus of analysts sees FY 2018 revenue climbing 54% to $1.6 billion.
TAL said in a news release that "well-paced strategic expansion of our learning center network through the addition of new classrooms and entry into new cities will remain a key part of our growth momentum."
China has more than 160 cities with a population of 1 million or more.
To show its seriousness in delivering shareholder value, TAL paid a special cash dividend in late May of 50 cents per American Depositary Share, totaling $41.2 million to all shareholders. That's sizable, considering that in all of fiscal 2017, TAL made $71.1 million in total capital expenditures.
Time changes indeed, this Chinese company is rewarding its loyal shareholders and this is just one from the selected group of companies we have identified in the world’s fastest growing market.