The markets are buzzing about Barron’s warning that U.S. social networking stocks “face being overvalued” compared with Google. Sure. But what about their emerging markets counterparts?
The number of wireless data subscriptions in the emerging world will probably double in the next 4 or 5 years. We talked about it a little on CNBC today and will go into more depth tonight on Trading the Globe at 7:30EST on CNBC.
Watch the video here:
Growth in wireless data penetration throughout Asia and Latin America is really spectacular and looks likely to remain so as we move into the middle of the decade.
On the Pacific Rim side, names you can trade with exposure to this story include SK Telecom (SKM, quote), which operates out of Korea and may even be expanding into the United States, as well as Chunghwa Telecom (CHT, quote) in Taiwan and wireless media developer NetEase (NTES, quote) on the mainland.
While some traders out there may still be a little edgy about investing in the Internet space, these are not your older brother’s dot-com stocks. Most evolved out of existing telecom or cable companies, and most are profitable.
NTES, the most “virtual” in the above group, trades at about 15 times next year’s earnings and is growing fast.
Generally, companies like these are exactly why you buy the emerging consumer. They are profitable, they are strategically placed and they are already growing fast.