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cbwang888 (25.80)

Wow! What a bargain for these small Chinese stocks

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April 09, 2011 – Comments (2) | RELATED TICKERS: ABAT , DYP.DL , HEAT

 

 

Buying small Chinese stocks with low P/E is like buying cheap stuffs like this magical hard drive from China:

 

http://blog.jitbit.com/2011/04/chinese-magic-drive.html

 

Don't buy stocks of companies based in China. Buy US stocks of those selling commodities to China if you want to make profits from the growth of China.

China is good at selling fake or cheap sh**, then they turn around with the money they cheated from us (I meant US) to buy real physical (gold, silver, energy, foods, base metals ...) from all over the world. (China realized USD may just have the same quality as their exporting goods and Chinese Yuan, aka, ZMB).

Ask yourself not to fall prey to it if you see article like this:

http://www.fool.com/investing/general/2011/03/16/is-smartheat-a-smart-investment.aspx

 

If you hold HEAT for too long, you may get burn ...

 

2 Comments – Post Your Own

#1) On April 09, 2011 at 11:14 AM, buffalonate (94.16) wrote:

All of these people think they are buying the bargain of the century when they see the prices of some of these stocks.  The reason they are so cheap is that they are scams and the smart money knows it.  The only people who buy that crap are the dumb money individual investors and index funds. 

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#2) On April 11, 2011 at 3:15 PM, Slider08 (41.27) wrote:

I think that, in many cases, the Chinese companies are the ones getting "scammed." http://www.chinafirstcapital.com/blog/archives/1979

By the way, "smart money" is actually invested in some reverse mergers, believe it or not. If you take the time to dig through the field, you can find some that have high insider and institutional ownership. Using HEAT as an example again (because you like to factlessly bash it for some reason), Fidelity owns ~15% of the company, other institutions own another ~15% of the company, and insiders have a significant stake.

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