Best Investments for 2006: China s Wireless Sector (CHL, CHU, SOHU, HRAY, SINA, TOMO, NTES)

23 April 2006

As of right now China has the largest number of wireless subscribers in the world; somewhere in the neighborhood of 400 million people.

According to Wayne Mulligan, Chief Investment Officer at Tech Stock Insider (http://www.techstockinsider.com), the Chinese Wireless sector is the best place for technology investors this year. "I see a tremendous opportunity brewing in China. It has the largest and fastest growing wireless market on earth and many of the companies that cater to this market are going overlooked in the U.S. To me, this indicates a tremendous buying opportunity."

One of the companies Mr. Mulligan has recently recommended is China Mobile (SYM: CHL). China Mobile is the largest provider of mobile phone service in Mainland China.

The stock has done well as of late, "The stock is already up nearly 20% since I recommended it 4 months ago and I still think we have a ton of upside here " according to Mr. Mulligan.

Aside from the mobile network operators like China Mobile and China Unicom (SYM: CHU), there are a number of Wireless Value Added Service Providers (WVAS) catering to China s mobile users. These are the companies that provide mobile users with ring tones, games and other entertainment related content and services.

For instance, Tom Online (SYM: TOMO), a WVAS provider of next-generation wireless content and services has seen its stock climb over 100% in the last 12 months alone. Other players in this space include Sina.com (SYM: SINA) and Sohu.com (SYM: SOHU), two of China s largest web portals.

However, Mr. Mulligan feels some of these stocks are currently overvalued and is looking to the less followed companies for big returns in 2006. "Tom Online is a decent company but its stock has already made its run, I ve been following a number of small cap WVAS companies lately, such as Hurray! Holdings (SYM: HRAY)."

There are also a number of B2B players that have been showing impressive returns over the last 12 months. One company that has been making headlines is NetEase.com (SYM: NTES). This company provides tracking software for Chinese mobile phone manufacturers in order to help them better gauge demand and cusotmer satisfaction.

NetEase.com has also seen its stock double over the last 12 months.

Mr. Mulligan is extremely bullish on the B2B Wireless Services sector in China. "I recently recommended my clients begin accumulating stock in a wireless B2B play. The B2B market is where the real growth will be this year."

Regretfully Mr. Mulligan is unable to divulge the name of this company because it is reserved for Tech Stock Insider members only. You can learn more about becoming a member of the Tech Stock Insider service by clicking here: http://www.techstockinsider.com/pr/chinese_wireless/

Mr. Mulligan is obviously bullish on the Chinese Wireless sector across the board and it s with good reason. With a huge wireless subscriber base that s showing no signs of slowing down in terms of growth and spending, China s Wireless market is definitely poised for another stellar year.

About Wayne Mulligan Most recently, Mr. Mulligan worked at Gilford Securities in New York, where he co-managed assets and was known as one of the premier technology analysts on Wall Street. Prior to joining Gilford, Mr. Mulligan co-founded and operated an Internet consulting firm, ISI Studios. ISI Studios specialized in backend software development and Internet marketing with a focus on the entertainment and media industries. Mr. Mulligan initiated and managed development projects with companies such as Gruner + Jahr USA Publishing, Viacom, and Sesame Street Television. Mr. Mulligan began his career in technology at BPS SoftWare where he was responsible for developing and maintaining a number of award winning America Online add-in applications. He is currently the Chief Investment Officer for Tech Stock Insider.

For more information on Tech Stock Insider, click here: http://www.techstockinsider.com

For more information on Mr. Mulligan s opinion and analysis of the Chinese Wireless Sector, click here: http://www.techstockinsider.com/pr/chinese_wireless/

Source: prleap