Capitalize on the 2008 Olympics?

Question

I have an idea, tell me what you all think.

Buy HMIN. A stock linked to economy hotel chains in China. I buy the stock now, 3rd quarter profits are bound to be large (due to Olympics) then I sell?

is there something seriously wrong w/ this idea?

Answer 1

Seems like a reasonable play. It has been said that Nike will benefit greatly from the Olympic games. Also check out Sancon Resources Recovery, a Chinese industrial waste company.

All that trash has to go somewhere.

Answer 2

What about Nike? Their quarter after the olympics will be a big one

Answer 3

Lots of people are looking it that way too, so it is already priced into the stock.

Answer 4

You could try it, just know that you are speculating and could lose money too.

HMIN - HOME INNS & HOTELS

http://finance.yahoo.com/q?d=t&s=HMIN

Trading just above a 52 week low. Down over 50% from it's high.

I think the China trade was done over the last 3 years. People have been getting out. China market is down about 40% off its high. Prob return higher but not until the USA economy improves.

http://finance.yahoo.com/q?s=FXI

Be careful.

You could also buy call options and fix your risk upfront.

http://finance.yahoo.com/q/op?s=HMIN