Chinese Medicine For The Global Bull

Nicholas Vardy

Nicholas Vardy has a unique background that has proven his knack for making money in different markets around the world.

Mindray Medical International Limited (MR) is a leading developer, manufacturer and marketer of medical devices in China. Established in 1991, Mindray offers products across three primary business segments: patient monitoring devices, diagnostic laboratory instruments, and ultrasound imaging systems. Mindray sells its products primarily to distributors and directly to hospitals, clinics, government agencies, and original equipment manufacturers.

Although Mindray is headquartered in Shenzhen, China, its aspirations are global. Last quarter, net revenues generated in international markets exceeded net revenues generated in China for the first time. The company already has 29 local sales and services offices in China, as well as sales and services offices in Boston, Istanbul, London and Vancouver. Mindray also recently announced a multi-year licensing pact with Aspect Medical Systems in connection with its patient monitoring systems. Finally, it is one of the few companies left in the world willing to put up with the hassles of Sarbanes-Oxley, listing on the New York Stock Exchange only this past September.

Mindray boasts the kind of growth numbers other companies only dream about. In Q3, its net income rose 131.0% and its fully diluted EPS was up 213.3%, compared with the same period last year. These numbers are particularly impressive, since Mindray produced them in the midst of product launch delays caused by changes in China’s SFDA regulatory approval processes and a government-driven, anti-corruption campaign targeted at the healthcare industry.

So buy Mindray Medical (MR) at market today and place your initial stop at $19.90. For potentially even more upside, buy the April $25 call options (MRDE.X). This is a volatile stock, so you may want to take half your normal position size.

Exclusive  A Bright Spot in the Market's Bearish 2016

PORTFOLIO UPDATE

Vimpelcom (VIP) is up 18.9% since our recommendation two weeks ago. Move your stop to $75.20. You already took a 125% profit in half of your options last week. Millicom (MICC) continues to roar ahead and the stock now is up 45.5%. Since we are so close to our target price of $60, let’s tighten our stop to $55.90. Other adjustments are to move your stop in: Telefonica (TEF) to $60.90; America Movil (AMX) to $42.90; and Partner Communications (PTNR) to $11.35. To make room for this week’s pick, let’s say goodbye to ICICI Bank (IBN) and sell the stock at its current price of $37.50 for a gain of 6.26%, as well as our previously unsold options for a 55.88% gain.

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Last week's Global Bull Market Alert pick, Russia's Vimpelcom (VIP), soared 12.21% on the back of an upside earnings surprise and continued strong momentum in the global telecom sector. This week's pick is another red hot mobile phone play, Partner Communications (PTNR), Israel's leading mobile communications company.

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