#7 - China Mobile (NYSE:CHL)
Up to this point, we’ve been taking a look at growth stocks. But to close this presentation, let’s take a look at China Mobile (NYSE:CHL). To understand the allure of this company, consider the fact that the Chinese mobile market includes 946 million customers. That user base is almost three times larger than the entire population of the United States.
And that number, as massive as it is, is also the reason why CHL is not a growth pick. The stock is probably near a saturation point. But the company will find ways to get at least nominally more revenue from existing users through measures like more expensive data plans and expanded services.
But like many U.S. telecom stocks, customers can look at China Mobile for its dividend which currently stands at an eye-popping 8.69%.
However, China Mobile makes this list because it is firmly controlled by the Chinese government. And if the current legislation in the U.S. Congress becomes law, then CHL will automatically be marked for delisting because the government’s stake would disqualify it from being listed on a U.S. exchange.
About China Mobile
China Mobile Limited provides mobile telecommunications and related services in Mainland China and Hong Kong. The company offers local calls; domestic and international long distance calls and roaming services; and value-added services, such as caller identity display, call waiting, conference calls, and others.
Read More - Current Price
- $27.51
- Consensus Rating
- N/A
- Ratings Breakdown
- 0 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- N/A
Chinese companies that are listed on American exchanges have a market value of over $1.3 trillion. And although none of these stocks are part of the S&P 500 (a common measuring stick), they still are becoming a staple in many portfolios.
The good news for investors is that even if one or more of these stocks is delisted, it won’t happen overnight. In fact, it will be several years before the stocks will get dropped from the exchange. And to be honest, it may not happen at all.
So, is it likely to happen? If I had the answer to that, I could be a wealthy man. The bill has passed the U.S. Senate. But the House of Representatives is pledging “a rigorous debate” that the bill did not receive in the Senate.
Rigorous debate in Washington-speak means it could very well be tabled until after the election. And even if it does get passed before, there’s no telling if President Trump would actually sign the bill into law.
I only walk you through this exercise to remind you that China is an issue that most politicians really don’t want to touch. But as an investor, this is an issue that you must continue to pay attention to, particularly if your portfolio has exposure to China stocks.
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