Bet there's no response to this one!
LDC caught my eye today. It has investments in several Chinese companies and has upped its stake to 51% in one of them, Beijing Success, a profitable company which provides software for securities trading and has strong cashflow. It has issued 14,000 software licences and that is merely the tip of the iceberg and the growth potential is vast. LDC upped its stake at a discount due to a favourable exchange rate. Recent flotations in China have been attracting enormous premiums as pent up investing interest is starting to be unleashed. A couple of Chinese internet stocks in the US have risen by over 10,000% (you did not misread that!!!!) and LDC with a controlling interest intend to float Beijing Success soon. (Even I ain't claiming they will rise 10,000% tho'............. )
LDC has a market cap of about 11 million with approx 54 million shares in issue. Beijing Success made about 1.2 million last year and has a strong balance sheet and cashflow. It seems sure to attract massive interest when floated.
On a 1-2 year basis, that makes LDC a potentially spectacular, if somewhat unusual, Buy!

This company is building up to a dramatic change in fortunes. They have been very active all year. In time we will look back and wonder why we failed to buy in at current levels.

News Headlines
08/11/04 10:15 Agreement with Chinese VC RNS
02/11/04 07:00 Investment in OFEX Operator RNS
28/10/04 07:00 Adviser to Power Projects RNS
26/10/04 08:33 London Asia Capital launches 200 mln usd China fund AFX
15/10/04 07:00 Change of Adviser RNS
09/09/04 07:00 Appt of Asian Operations FD RNS
28/07/04 07:30 Set-up of US Operations RNS
30/06/04 12:30 Malaysian investment RNS
02/06/04 09:52 Senior App't & New Alliances RNS
26/05/04 10:13 Creation of Advisory Panel RNS
27/04/04 07:00 Inv'ment in Capitalink Pte RNS
31/03/04 08:30 Acquisition RNS
22/03/04 10:53 New investments RNS
16/03/04 16:03 Gartmore increases stake RNS
15/03/04 08:45 Strategic Alliance RNS
08/03/04 08:40 Exp'n of Singapore operations RNS
06/01/04 11:06 Strategic Alliance RNS
02/01/04 10:38 Acquisition RNS

The markets turned in the Spring of 2003, since when we have seen people pile into tech stocks on the back of their recovery from the massive loss of faith from the market's peak in 2000. This was followed by a rush to buy into oil minnows on the back of another middle-east crisis and the explosive growth and subsequent demand from China. These oil stocks are now at highly inflated levels and like all bubbles cannot be sustained for ever. Therefore where is the obvious move for hot money? Well it's staring us in the face. Need I say more?

LDC are on the leaderboard this morning!