Wednesday, April 12, 2006

CHU Looks attractive with Redberry

I have been fairly bullish on Chinese stocks lately, and I am feeling especially bullish on China Unicom, which is launching Chinese Redberry to complete with Blackberry, I have put the company on my radar for getting a leg up on it's competitors, primarily China Mobile, which is partnering with RIM this summer, to launch Blackberry services in China. The Redberry services are similar to Blackberry, and are months ahead of China Mobile in launching the product. RIM is suing CHU, so the possibility of the service being stopped some time is a cloud hanging over the new service.

Despite heavy competition, I like CHU for it fairly low P/E and dividend. It also has a high Relative Strength going for it. If the Redberry service takes off, I could see this stock going past $10 this year. This stock should be approached carefully however since it is a foreign investment and there is speculation about the the company being broken up by the government.

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