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Teacherman1 (49.31)

Looking For Chinese Stocks

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March 06, 2010 – Comments (24)

I am a relatively longer term investor, and as such, tend to avoid the more volitle sectors and those that can be affected quickly by outside forces. One of the sectors that I have avoided has been stocks of Chinese companies.

I have invested short term in both COGO and APWR and made money on them. APWR was a special situation play and when the things I expected to happen, did, I sold it. I sold Cogo after a fairly good short term gain. 

I am looking not for "high spec", short term stocks, but those of solid companies, with products and/or services that will benefit from what is happening in China. Not looking to day trade, but to invest for what I call the "intermediate term", which would be 2 to 6 months, but with the intent of selling them when they have achieved a reasonable ( though not spectacular ) upside. Then watch them for a new opportunity.

I realize after re-reading this that I am probably looking at what most people are looking for, but many investing in stocks of Chinese companies are looking at "penny stocks", or very short term plays that are hot at the moment.

I would prefer companies in Tech, Power, Infrastructure, etc, but welcome all suggestions. If you have time on this (for me) lazy weekend, I would also like imput on why you think they may be a good investment.

I am sure many others would like to "pick the brains" of the Chinese experts in this forum, so look forward to getting replies.

Thank you in advance for any time or effort you invest in fullfilling this request.

Have a great weekend. 

24 Comments – Post Your Own

#1) On March 06, 2010 at 5:06 PM, JaysRage (93.91) wrote:

Two that I'm in right now that have a lot of room to run are LLEN and NEWN.OB   

LLEN just uplisted recently......it is my favorite coal stock by far and one of the most aggressive growth stories in the small cap coal sector.    A great business and a great stock.    Even after the most recent runup, it is trading at roughly 9X forward GAAP earnings.   It should double from here without much difficulty.  

NEWN.OB is smaller company that is unpickable in CAPS has been able to integrate its lithium battery partners into one company and is currently trading at roughly 6.5X forward earnings.   In addition, they have expressed a desire to uplist this year and have undergone a number of the import steps to take that leap. 

I am already invested in these two stocks.    I am shortly going to be closing a couple of other positions and I have already picked my new favorites, and I will write a blog about them at that point, but I don't really want to share until I am able to establish a position.   

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#2) On March 06, 2010 at 5:06 PM, JaysRage (93.91) wrote:

Two that I'm in right now that have a lot of room to run are LLEN and NEWN.OB   

LLEN just uplisted recently......it is my favorite coal stock by far and one of the most aggressive growth stories in the small cap coal sector.    A great business and a great stock.    Even after the most recent runup, it is trading at roughly 9X forward GAAP earnings.   It should double from here without much difficulty.  

NEWN.OB is smaller company that is unpickable in CAPS has been able to integrate its lithium battery partners into one company and is currently trading at roughly 6.5X forward earnings.   In addition, they have expressed a desire to uplist this year and have undergone a number of the import steps to take that leap. 

I am already invested in these two stocks.    I am shortly going to be closing a couple of other positions and I have already picked my new favorites, and I will write a blog about them at that point, but I don't really want to share until I am able to establish a position.   

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#3) On March 06, 2010 at 5:06 PM, JaysRage (93.91) wrote:

Two that I'm in right now that have a lot of room to run are LLEN and NEWN.OB   

LLEN just uplisted recently......it is my favorite coal stock by far and one of the most aggressive growth stories in the small cap coal sector.    A great business and a great stock.    Even after the most recent runup, it is trading at roughly 9X forward GAAP earnings.   It should double from here without much difficulty.  

NEWN.OB is smaller company that is unpickable in CAPS has been able to integrate its lithium battery partners into one company and is currently trading at roughly 6.5X forward earnings.   In addition, they have expressed a desire to uplist this year and have undergone a number of the import steps to take that leap. 

I am already invested in these two stocks.    I am shortly going to be closing a couple of other positions and I have already picked my new favorites, and I will write a blog about them at that point, but I don't really want to share until I am able to establish a position.   

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#4) On March 06, 2010 at 5:07 PM, JaysRage (93.91) wrote:

Two that I'm in right now that have a lot of room to run are LLEN and NEWN.OB   

LLEN just uplisted recently......it is my favorite coal stock by far and one of the most aggressive growth stories in the small cap coal sector.    A great business and a great stock.    Even after the most recent runup, it is trading at roughly 9X forward GAAP earnings.   It should double from here without much difficulty.  

NEWN.OB is smaller company that is unpickable in CAPS has been able to integrate its lithium battery partners into one company and is currently trading at roughly 6.5X forward earnings.   In addition, they have expressed a desire to uplist this year and have undergone a number of the import steps to take that leap. 

I am already invested in these two stocks.    I am shortly going to be closing a couple of other positions and I have already picked my new favorites, and I will write a blog about them at that point, but I don't really want to share until I am able to establish a position.   

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#5) On March 06, 2010 at 5:12 PM, JaysRage (93.91) wrote:

Sorry for the multiple posts.  I was having technical difficulties and I didn't think it was working.   

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#6) On March 06, 2010 at 5:40 PM, simplemts (< 20) wrote:

My favorite play right now is SDTH which I expect to tick up to the $7s (Currently at $6.51) after 2010 guidance is issued within the next month or so.

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#7) On March 06, 2010 at 5:44 PM, hendrixtrader (< 20) wrote:

CSR. check it out

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#8) On March 06, 2010 at 6:01 PM, SUPERMANSTOCKS (50.61) wrote:

SOLF

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#9) On March 07, 2010 at 12:29 AM, fmahnke (96.45) wrote:

I like game (or GiGM) and LTON. Good Luck

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#10) On March 07, 2010 at 1:17 AM, stills999 (< 20) wrote:

A great stock I'd check out is CFQCF... it is newly listed so plenty of upside and specializes in heavy equipment for building railway and bridges ... I think this is 'right up your alley'. 

 

My other 'top 10' China recommendations .... all these I think are fairly solid.

1.  LPIH - really like this oil distributer

2. CCME - advertisements in Bus TVs

3. TPI - pharma

4. HOGS - processed pork

5. CHNG - natural gas

6. LLEN - coal

7. CNYD - national parks

8. AOB - phama

9. JST - power transformers

10. CCLTF - floor tiles

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#11) On March 07, 2010 at 1:31 AM, stan8331 (96.25) wrote:

The question with Chinese stocks in general is how trustworthy the numbers are.  I'm keeping my individual real-world positions small to help insulate against any dramatic flameouts.  Several Chinese stocks are currently among my worst performers in CAPS, but all these have positives that make me believe there's a good chance they'll do well long-term: FMCN, STV, CMED, SDTH, FEED, LTON.

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#12) On March 07, 2010 at 2:21 AM, jemackey511 (< 20) wrote:

Check out WH.... if it posts a solid quarter, then it will have a dramatic run.

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#13) On March 07, 2010 at 2:34 AM, 20PercentPM (< 20) wrote:

I like China Recycling Energy (CREG.OB). It closed at a 12 month high of $5 on Friday. Here's my pitch for CREG from 1/17/10:

Company just reported preliminary full year 2009 results:
Revenue up 130%
Full year EPS estimated at $0.22-$0.23 per share up from a loss of $0.07 per share in 2008.
They are “a fast-growing industrial waste-to-energy solutions provider in China.” They make money by a method they call BOT (build, operate, transfer). They Build a power plant and make money, Operate the power plant for up to 20 years and make money, after the 5-20 year contract ends they sell the power plant (Transfer) and make more money!
Recycled energy is currently estimated to be only 1% of total energy consumption in China, and the government is greatly encouraging its use. Report this comment
#14) On March 07, 2010 at 2:43 AM, jjelmo (76.32) wrote:

I like Telestone Technologies (Nasdaq: TSTC), revenues and earnings are growing quickly as China builds out 3G - Telestone is an infrastructure technology supplier for the big telcos. 

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#15) On March 07, 2010 at 2:43 AM, jjelmo (76.32) wrote:

I like Telestone Technologies (Nasdaq: TSTC), revenues and earnings are growing quickly as China builds out 3G - Telestone is an infrastructure technology supplier for the big telcos. 

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#16) On March 07, 2010 at 2:44 AM, TMFUltraLong (99.97) wrote:

Here, this ought to keep you busy....

CDC Software (CDCS)
Zhongpin (HOGS)
China Sky Medical One (CSKI)
AgFeed Industries (FEED)
SmartHeat (HEAT)
Harbin Electric (HRBN)
A-Power Energy Generation Systems (APWR)
ZST Digital Networks (ZSTN)
Sina.com (SINA)
KongZhong (KONG)
China Biologic Products (CBPO)
Lihua International (LIWA)
CDC Corp. (CHINA)
Shanda Games (GAME)
Telestone Technologies (TSTC)
Tongxin International (TXIC)
Tianyin Pharmaceutical Co. (TPI)
American Oriental Bioengineering (AOB)
China Nutrifruit Group (CNGL)
American Dairy (ADY)
Xinyuan Real Estate Co. (XIN)
China Green Agriculture (CGA)
Duoyuan Printing (DYP)
China Marine Food Group (CMFO)
China TransInfo Technology (CTFO)
China Integrated Energy (CBEH)

Enjoy...

UltraLong

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#17) On March 07, 2010 at 8:35 AM, Teacherman1 (49.31) wrote:

Thank you very much to all who posted replies. I am fighting a very bad case of Hay Fever this weekend so when I was last online, there were none.

Was pleasantly surprised to find these this morning.

Again, thanks to all, but especially to UltraLong for what appears to be an "exhausting list", in more ways than one.

You are a great bunch.

Have a good weekend.

Taking more "meds" and going back to bed now.

Hope others who are interested in the Chinese market will also benefit from those suggested. 

 

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#18) On March 07, 2010 at 6:44 PM, JaysRage (93.91) wrote:

stills999 -- CFQCF is not yet accepted for listing on the NASDAQ.  They have only applied.   That is one that I've attempted some DD on and there just isn't all that much for numbers in terms of what Wowjoint actually has done and whether they are worth the current multiple.  Needless to say, I've also got my eye on them.    Heavy construction and mining company.   They have a few things that they'll have to accomplish before they get listed.   They will need to issue guidance and get all of their ducks in a row yet.   Obviously, it won't be long, but they are not officially NASDAQ yet.  

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#19) On March 08, 2010 at 8:38 AM, TMFBabo (100.00) wrote:

I watch/own many of the above, and there are many good suggestions in there.  Here's more fodder for your watchlist:

ABAT, BSPM.OB, CHIO, CNOA.OB, CYXN.OB, GFRE, HQS, LTUS.OB, ORS, PUDA, SBAY.OB, SGZH.OB, SUTR, WKBT.OB

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#20) On March 09, 2010 at 8:54 PM, trueindian25 (< 20) wrote:

Gushan (GU)

It is a very solid stock and it might start to rally now.... since the tax issue will get resolved, atleast this year.  There is more upside than downside.

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#21) On March 12, 2010 at 3:16 AM, gman444 (31.11) wrote:

One of my favorite stocks of any kind for a long-term buy and hold:  NPD.

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#22) On March 25, 2010 at 2:57 PM, djshagggyd (74.15) wrote:

Good afternoon Teacherman,

Great post! I read through all the comments and got a lot of really good ideas. Thanks everyone.

Lately I've had my eye on CMED, CHNG, and HOGS... I was thinking about putting 10% of my portfolio towards one of them... but haven't fully made up my mind yet.

Were you able to come to any conclusions about which are your favorite Chinese companies?

Hope the hay-fever's all cleared up! And that you have a great day.

~djshagggyd

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#23) On April 03, 2010 at 8:46 PM, 1277507302 wrote:

I've been poking around the China ADR space for a year and a half or so and like the following presently:

CHBT --- Fully funded x24 capacity expansion on tap over next few years)

CCME --- YoY growth will be phenomenal, well funded

SOKF --- China middle class play, great growth, not so well funded

LPIH --- Fiscal 2011 begins in early summer of 2010, forecast for fully diluted EPS of 0.65 cents ($2.50 stock)

CEU --- *Well* funded, guided for 30% rev growth in 2010.

SGZH --- Coal in China (shrug). Had a customer shut down their power plant last Q. Throw out the deviant Q and you have 5.5 p/e based on last 4Q's. PS, the price of coal in China is on the rise.

CHOP --- Fully funded x2 capacity expansion planned for this year.

CSKI --- May go up, may go down. I'm selling calls.

GHII --- Super spec. with p/e of 1.3

 

Bric

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#24) On April 05, 2010 at 3:32 PM, djshagggyd (74.15) wrote:

Hey Teacherman-

I've decided against buying into any Chinese stocks (for at least a few months until I gain more knowledge).

But I've still been doing research on them, and today I came across this article that came out on Fool. It's about Chinese stocks... and I thought it might interest you. Here's the link:

The Best and Worst Stocks in China

Have a great week Teacherman!

~djshagggyd

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