Stock Picker: Check Out China
Formula Capital's James Altucher says investors should buy stocks of companies involved in travel to China. But wasn't China supposed to be in an economic decline, once the Olympics were over?
Nope: "This is still an economy that's growing 10 percent a year, domestic tourism is growing 10 percent a year," he told CNBC. "You've got a middle class that's going from 43 percent of the population to 76 percent of the population, and Chinese travel plays are good bets here."
So who's he talking about?
"Air Media," he said. "The company's got display screens that they put in 52 different airports around China; the screens display news, weather, and, of course, advertising. The company had 250 percent revenue growth over the past year."
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He also likes Home Inns.
"They are the largest budget hotel chain in China," he explained. "They are the Holiday Inn of China; they are in 79 cities with 266 hotels, and they're building another 200 hotels over the next year. This is the pure play on Chinese tourism."
Disclosure information for James Altucher was not immediately available.