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It's Finally Time To Buy Into C.H.I.N.A.

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70

May 20, 2010 – Comments (24) | RELATED TICKERS: NIVS , HEAT , HRBN.DL

Yeah, I know what you must be thinking. For one, who in the hell would buy into China with the risk of a freefall given the already fast paced growth there and the possible risks of inflation and the government curbing growth. You're also probably wondering why in the hell I would put a period in the word CHINA in the title... all will be answered my friends... all!

China is in the midst of one of the fastest growth spurts I've witnessed for such a large nation and they need to make sure they don't screw it up. Recent economic data showed that their consumer price index is up 2.8% and the producer price index is up 6.8% year over year. These are some pretty hefty figures given that Chinese money supply has grown by almost 100% over the past 50 months. Everything here points to the fact that China is experiencing growing inflation. So where's the juicy goodness you might ask? Well China is actually doing something about it rather than allowing it to get stuck in debate for six months while parties bicker.

China has begun combating inflation by remember its roots and not allowing banks to run with such low levels of liquidity as we recently saw in 2008 with many US and European banks. Chinese banks are required to now carry almost 17% in reserves compared to loans outstanding, which is significantly more than US banks carry for instance, so there is solid liquidity there. The Chinese government is also battling inflation from the housing front which helped do the United States in. Chinese banks are now requiring considerably higher down payments on second homes and 20% down on land auctions which is a marked change from their recent policies.

The Chinese government is being proactive about its inflation rather than reacting to it as an after-effect and I feel strongly they are making smart moves for their economy. Their overall debt situation looks really good compared to other larger nations and their trade surplus continues to be a source of economic growth. The interesting thing about their surplus it is has decreased by roughly 80% in the first few months of 2010 compared to 2009 putting less pressure on the yuan for revaluation which should help perpetuate continued exports of Chinese products and in turn keep their bull market rolling higher. 

So why not invest in China given the above, right? Let's analyze those abbreviations a bit more... what does CHINA stand for?

C... The C in China stands for Cash. The multiplicity of companies I've come across that trade on US markets have an abundance of cash on hand and they are using it to buy smaller businesses, repurchase shares, pay off any existing debts, or expand their own businesses. Very few of the companies I've found are significantly indebted and manage their cash on hand wisely.

H... The H stands for High Growth. With GDP for the most recent quarter tipping the scales at 13% it should come as no surprise that most Chinese companies which have found their way to market are growing between 20% to 40% year over year which is far and away better than anything you'll find regularly in the US or Europe. 

I... The I stands for Integration. No culture or economic region has so throughly adapted to and utilized new technologies to their advantage as quickly as the Chinese. In addition, most Chinese companies have been quick to work out any kinks involved in mergers. It seems any merger these days is followed by the following phrase, "immediately accretive to earnings."

N... The N stands for No Comparison. There are simply no comparisons in the world where you can find companies trading for such low multiples to growth or cash as you can in China. In addition, there is also a general lack of real competition in some of the sectors that Chinese companies operate in. I don't know where else you can regularly find forward multiples in the 3-9 range with lots of available cash.

A... The A stands for A$%holes. This broad encompassing definition goes out to both the management of these companies which consistently dilute shareholder value by issuing shares to themselves and to the first-year analysts who seem to have absolutely no clue on how to value Chinese stocks. It seems to every upside there must always be a downside and consistently this is it for Chinese based US equities. If you can deal with the occasional re-statement and some huge beats and misses because one analyst read a blog on myspace about the next hot sector then you should be good to go with Chinese stocks. 

So that my friends is CHINA in a nutshell and I think it looks like a great place to begin building a position, especially with a few names at levels which are more than undervalued, so let me highlight a favorite few (and for those of you who have followed my blogs regularly, most of these will not come as any surprise to you). 

NIVS IntelliMedia Technology (AMEX: NIV)

NIVS IntelliMedia Technologies valuation here makes absolutely no sense. NIV is down over 45% from its highs after reporting consistently great quarterly reports and it makes less sense than the Chewbaca and Twinkie defense combined! Tell me how the following numbers strike you...

2005: 22M in revenues, .07 in full-year EPS
2006: 38M in revenues, .19 in full-year EPS
2007: 78M in revenues, .31 in full-year EPS
2008: 144M in revenues, .41 in full-year EPS
2009: 185M in revenues, .59 in full-year EPS
2010: 215M-230M(est) in revenues, .68 (my est.) in full-year EPS

Oh yeah, these guys have no clue what they're doing. Internal growth is averaging, AVERAGING 25%! They just launched their mobile phone business in the past year and it is already expected to generate 60-90M dollars in revenue in 2010. Shareholder equity has been on the rise from 2006, rising from 2M then to over 86M now, placing this at a price to book of just 1.2! It's forward price to earnings ratio is just a tad UNDER 4! With a long-term growth rate closer to 22%, that means a PEG ratio of just 0.18 which makes it one of the least expensive growth stocks around I'm sure. Every sector of their business is showing double digit growth... this drop in share price makes no sense at all and is the perfect opportunity to dive into a great growth story on the cheap! I think I am being fairly conservative in my forward estimates, but I fully expect NIV to be worth $6.50 based on the growth we've witnessed over the last few years and given their current growth projections. The timeframe is 12-16 months.

China Sky One Medical (NASD: CSKI)

It's time to re-visit an old friend in China Sky One Medical which has once again dipped to absurdly low valuation levels. China Sky reported yet another stellar quarter earlier today in which they raised revenue guidance by 4M and revised 2010 EPS higher by 1M. Now we're looking at a company with $3.90 in cash per share, trading at 5.55 times 2010 figures and growing revenues by a handy 16-20% per year. Doing the math conservatively and you get a company trading at a price earnings to growth of just 0.35 roughly. Let's also take a look at some of their more recent figures...

2007: 49M in revenues, 1.15 in full-year EPS
2008: 92M in revenues, 1.87 in full-year EPS
2009: 130M in revenues, 2.22 in full-year EPS
2010: 164M (est.) in revenues, 2.45 (my est.) in full-year EPS
2011: 187M (est.) in revenues, 2.70 (analysts est.) in full-year EPS

Most of their 90 product line is showing double digit growth and their guidance, though conservative, suggests this. Back out the nearly $4 in cash and you're paying under 4 times earnings, that is just not right! You are now clear for some uninhibited buying!

Harbin Electric Inc. (NASD: HRBN)

Harbin Electric is great and awesome rolled up into a blintz and served with maple syrup. The company makes three types of motors in China: Rotary, Micro and Linear. HRBN's big business right now is in the rotary motor with specific attention paid to the energy sector. Their goal seems easily achievable based on their current growth rate that they'll have an 8% share of the market by 2011 (they currently are just over 3.5%).

Let's take a look at some of this goodness. Revenue growth rates of 60-80%, earnings per share jumps of 30-40% and a future price to earnings ratio of under 7 with net cash per share of $1! They have logged some impressive earnings beats of 35%, 31%, 90% and 18% over the last four quarters and increased guidance every time. Don't believe me? I think it's time to look at some figures, don't you?

2007: 65M in revenues, .91 in full-year EPS
2008: 121M in revenues, 1.19 in full-year EPS
2009: 223M in revenues, 1.71 in full-year EPS
2010: 435M (est.) in revenues, 2.63 (est.) in full-year EPS
2011: 517M (est.) in revenues, 2.78 (est.) in full-year EPS

Gross margins are up! This company is absolutely amazing and I think you need to jump all over this pullback. True valuation here to me is $32-34.

SmartHeat Inc. (NASD: HEAT)

I think everyone's got a case of the "nuts" around here and its about time we gobbled up some SmartHeat. I mean if you can't take the HEAT, get out of the kitchen. Not many investors can really take 38% yearly revenue growth followed by perhaps another 32%. Less than 7 times forward figures for a PEG of about 0.2. Margins healthfully in double digits, same with ROE, nearly $1.50 in cash per share...seriously what the hell is the issue here? Did I mention its also technically oversold. Yeah, go ahead and hit the buy button. Not conviced yet, you know its time for those glorious recent statistics so here goes...

2008: 33M in revenues, .29 in full-year EPS
2009: 83M in revenues, .64 in full-year EPS
2010: 114M (est.) in revenues, .65 (est.) in full-year EPS
2011: 150M (est.) in revenues, .87 (est.) in full-year EPS

So *clearing throat*.. what seems to be the officer, problem?

Xinyuan Real Estate (NYSE: XIN)

This is actually very simple. Even with tighter lending practices from the Chinese government, which may I add is a very smart idea, Xinyuan Real Estate is still going to be moderately cash flow positive. They have closed a 60 million dollar net debt position down to a 5M dollar net debt position and added almost 90M in cash this recent quarter. Even if Xinyuan faced pressure to sell off some of its real estate assets (which a rising GDP and housing market shouldn't lead to) at 70% mark to market it would STILL put Xinyuan below market value, and it would take at least a year and a half under the worst of circumstances to reach this mark in my opinion. So metrically, XIN is trading at 0.4 times book and in even my highly skeptical and conservative estimates about 5.2 times 2010's figures while growing at a fairly robust 25% per year.

2007: 310M in revenues, .54 in full-year EPS
2008: 357M in revenues, (.32) in full-year EPS
2009: 449M in revenues, .61 in full-year EPS
2010: 520M (est.) in revenues, .72 (est.) in full-year EPS
2011: 717M (est.) in revenues, .99 (est.) in full-year EPS

They have ample cash to survive almost any change in the Chinese government's lending practices and I feel this is one case where the news has been rapidly overplayed. It doesn't make sense to me to pass up XIN at these levels despite the inherent risk which I think I've shown is grossly overstated. Fair value to me given some revenue uncertainty but also taking into account the property value and cash hidden in this company is probably closer to $5.25.

CDC Software (NASD: CDCS)

Ok, so I'm cheating slightly here with CDCS being located in Hong Kong so sue me!  CDC Software is a recent spin-off of CDC Corp (CHINA) and has been the consistent and primary growth vehicle of CDC for years. I honestly don't know what CDCS has left to prove to investors before it gets the valuation it deserves.

2009: 204M in revenues, 1.31 in full-year EPS
2010: 219M (est.) in revenues, 1.26 (est.) in full-year EPS
2011: 238M (est.) in revenues, 1.48 (est.) in full-year EPS

CDC Software raised guidance on January 9th and raised guidance AGAIN on February 25th proving just how strong their licensing revenue is right now. They are trading under six times 2010 profit expectations with over $1.50 in net cash and revenues slated to grow at 10% (that's a PEG of roughly 0.6 just in case you're keeping track). Operating cash flow hit record levels in 2009 and organic license growth for the most recent quarter was just shy of 30%! Top this off with a price to book of under 1, a price to sales of 1.25 and adjusted EBITDA up 37% year over year and you can tell I'm pretty damn excited about this inexpensive stock price. CDCS is firing on all cylinders and it doesn't make a difference if no one notices it, but I'll be looking down the mountain at a $22 stock by 2012.

Zhongpin Inc. (NASD: HOGS)

Zhongpin is trading incredibly low on my value scale. More than likely I attribute this move lower as a sympathy move with the Shanghai market and the inherit risk associated with buying foreign owned food companies. Seriously, it's as if we factor in that every 2-5 years a foreign outbreak of "something" will be detrimental towards earnings. That aside, there is amazing value to unlock here.

2007: 291M in revenues, .90 in full-year EPS
2008: 540M in revenues, 1.05 in full-year EPS
2009: 726M in revenues, 1.46 in full-year EPS
2010: 933M (est.) in revenues, 1.65 (est.) in full-year EPS
2011: 1120M (est.) in revenues, 2.04 (est.) in full-year EPS

Revenue seems locked into growing at 29% in 2010 and my targets are for another 20% in 2011. EPS is projected at $1.59-$1.74 in 2010 for a forward price to earnings of just 6 (remembering that 30% growth rate ) for a price earnings to growth of just 0.2!!! I'd slate their 2011 EPS around $2 per share. Book value here is $8.56 per share so its hardly over that and margins are very healthy. I don't know what's up here, but I like it. Two thumbs up.

A-Power Energy Generation Systems (NASD: APWR)

A-Power provides power grids and power generation systems to industrial companies in China but I think the real potential here lies in their wind turbine production. It's no secret that the past three years have been spent by investors attempting to seek out the next alternative fuel generation stock. We've had solar stocks rally, fuel cell companies jump and even to some extent wind generation companies which is where APWR falls. The revenue growth and profit potential here are huge, the only problem I run into with APWR is their inability thus far to own up to those expectations. Much of APWR's stock price is built upon the expectation of making timely deliveries and receiving payment on its wind turbines. So far, APWR has fallen behind on delivery of all of its wind turbines. If APWR can get its hide into gear, they could be staring down a forward price to earnings of something like 5 times 2011 earnings. A-Power has a lot of cash on its balance sheet (over $3 per share) and could potentially see a near 50% gain in its revenue next year if all goes well. Either way, A-Power looks like a solid longer-term play if you can get by the gimmick-nature of the alternative energy generation sector right now. Now for a quick look at how they've performed over the last few years...

2007: 153M in revenues, (too lazy to look up EPS =) )
2008: 265M in revenues, .86 in full-year EPS
2009: 311M in revenues, 1.05 in full-year EPS
2010: 387M (est.) in revenues, 1.11 (est.) in full-year EPS
2011: 570M (est.) in revenues, 1.60 (est.) in full-year EPS

BioStar Pharmaceuticals (NASD: BSPM)

Perhaps the market has a blindfold on or it needs a stronger pair of glasses. BioStar Pharmaceuticals makes China Sky One Medical look like a charity case.

BioStar has Xin Aoxing, their blockbuster and only over-the-counter Hepatitis B capsule in China. This alone accounts for roughly 2/3rd's of their revenue. Speaking of revenues.... how does 34M in 2008, 53M in 2009 and 80M-82M in 2010 sound? Pretty sweet I bet! Let's throw out some other metrics aside from the 50% projected revenue growth rate. How about 74-80c in expected EPS. Operating margins over 30%. There are literally no metrics going in the wrong direction here. They are currently in 6000 outlets and should be in well over 10,000 by years end. They are buying smaller companies which will be immediately accretive to earnings. I don't know what else they could possibly do better other than giving out no stock based compensation at all, but if they keep putting out numbers like this I don't really care. So what we have here is a company growing at 50% per year and giving them a slight edge even to the downside, trading at 5 times 2010's figures for a current year PEG of 0.10... seriously.. ZERO point one! I project them to earn $1.08 in 2011 so this is by all standard obscenely undervalued with emphasis on the obscenely. Buy it, and if you're bored, buy some more. Target price should be north of $9 but we'll see how things shape up going forward. Although there has been no coverage of BSPM I can guestimate their figures below...

2008: 34M in revenues, .22 in full-year EPS
2009: 53M in revenues, .32 in full-year EPS 
2010: 81M (est.) in revenues, .77 (est) in full-year EPS
2011: 107M (my est.) in revenues, 1.08 (my est.) in full-year EPS

The sick part is there are significantly more Chinese companies which I have failed to add here but these seem the most egregiously undervalued. China has come down to a reasonable valuation and the government is taking proactive steps to contain inflation and stem further growth, now is the time to start taking those initial positions.

UltraLong

24 Comments – Post Your Own

#1) On May 20, 2010 at 2:09 AM, Peshorper (64.71) wrote:

I think your and my view on China are fairly aligned.  After the beating Chinese markets have taken, I think they are due for a comeback on the back of economic fundamentals.

I already own Hogs but I am going to have to watch some of these others now also.

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#2) On May 20, 2010 at 3:52 AM, Tastylunch (29.39) wrote:

any thoughts on CCME and RINO?

anyway I agree with you, given the fall in price over there. Their equities look far cheaper than ours, even when you factor in possible acocunting trickery disocunt.

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#3) On May 20, 2010 at 5:30 AM, fmahnke (89.11) wrote:

Hey UL.

 I hope you and your Mom are doing well. I think this post is timely as I bought some Heat yesterday and some NIV earlier this week.

I also bought some MCZ last week but am wondering if  I should continue to hold it given the rencent events in Europe and am wondering about your recent thoughts on MCZ. Thanks

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#4) On May 20, 2010 at 6:08 AM, JakilaTheHun (99.94) wrote:

NIVS IntelliMedia Technologies valuation here makes absolutely no sense. NIV is down over 45% from its highs after reporting consistently great quarterly reports and it makes less sense than the Chewbaca and Twinkie defense combined! Tell me how the following numbers strike you...

NIVS's valuation makes total sense once you factor in a lot of accounting irregularities.  Their audit firm (both their prior one and the one that it was acquired by) have received some negative marks from the PCAOB on very important issues.  NIVS's cash flows always lag their earnings by a substantial amount, mostly due to Accounts Receivable. 

When you take into account that China's largest hedge fund manager has suggested that '200 of the 350 Chinese companies trading on the American exchanges are frauds or have major internal issues being ignored', that's no laughing matter. 

NIVS might indeed end up being a good company, but to simply look at their earnings and automatically assume that they are "cheap" is irresponsible.  Enron, WorldCom, and Satyam looked "cheap", too.   NIVS may simply be a legit growing business that has lagging cash flows due to its high-growth; but I'd investigate the issue before automatically assuming that earnings are everything. 

 

There are some very cheap stocks in China right now, but you have to dig much deeper than this.   If you're simply looking at earnings and 'assuming' they are cheap based on that, you could get burned severely.  

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#5) On May 20, 2010 at 6:12 AM, JakilaTheHun (99.94) wrote:

Also, I would not underestimate the force of credit contraction.  China's entire economy is dependent upon a stream of government money that drives its construction sector. 

China has a hard decision to make between very high inflation and price stability.  If it choses the latter, it will suffer significant economic contraction. 

The only counter-weight to this might be the recovering US economy.  Certainly, the situation in Europe does not help China, so it's counting on the US to make up for demand. 

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#6) On May 20, 2010 at 8:12 AM, TigerPack1 (97.22) wrote:

I share many of Jakila's concerns, but is the reward worth the potential risk???  Possibly.

Most U.S. corporations also in engage in accounting irregularities if not downright fraud in basic common sense logic.

The real upside investing in China will come from a stable to rising currency value the next couple of years, vs. the overdeveloped world in Japan, the U.S. and Europe.

Sky-high debt levels and the necessary roll-over debt funding requirements will slow economic growth for many years if not decades in the already industrialized nations.  China is the world's largest exporter of goods and capital to the rest of the planet, and no one questions this honest assessment of capital flows or Adam Smith's "wealth of nations" trend philosophy.

I personally do not own any China-focused companies (excluding Yahoo! owning half of the 2nd largest Chinese-based search engine), but most U.S. corporations have assets and sales in this quickly growing market.  Buying China the next few months, as the global liquidity crisis now beginning sends share prices lower, is probably a good idea long-term.  The raw stock "valuations" in China are much, much lower than in the U.S., even if (when) economic growth slows dramatically.

-TigerPack

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#7) On May 20, 2010 at 9:15 AM, PIGMA (27.80) wrote:

Great Post! Any thoughts on SDTH?

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#8) On May 20, 2010 at 9:33 AM, Option1307 (29.96) wrote:

Another excellent post as always!

Jakila certainly does bring up some good points about investing in China, especially about the possible fraud etc. I agree that there are a lot of companies out there that definitely seem cheap; however, some of the values that I find over there just seem too good to be true. That honestly scares the crap out of me, usually when things seem too good, it's because somebody is cooking the books!

I'm not saying all China stocks are frauds and to stay far far away, rather I think Fools just need to spend extra time digging into the financials etc. (Well technically you should always speed extra time no matter what company, but you get my point.). The next several months are probably going to present a great buying opportunity, long term, in China. The trick is going to be finding the real gems, i.e. non-fraudulent companies with actual profits, and scooping them up at bargins prices.

Also, I have to say that while the risk/reward does seem to be in our favor here, I would certainly suggest to all Fools that they don't get too crazy and go overboard on their Chinese shopping spree. China may represent a good buying opportunity now/soonish, but I definitely would not want a high percentage of my investments in China. Too much potential risk still.

Keep up the good work UL!

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#9) On May 20, 2010 at 9:39 AM, sentinelbrit (85.48) wrote:

I have got burned on two China stocks I bought (not a huge sample I know but it still hurts). I hate to say it, but this is a market in which it is very hard to know what companies are really doing. Therefore, I think funds are the better way to go - you need someone who is on the ground meeting these companies and understand the accounts etc. In reading the transcripts of quarterly earning reports, I get the impression that management is not realistic. I own YTEC and last quarter they said sales were weak because companies were pushing orders out. This quarter sales were weak again but management said they were getting a lot of RFPs and winning quite a few. They left their full year earnings estimates unchanged. It strikes me that either they are very confident or don't want to lose face, or are smoking something. 

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#10) On May 20, 2010 at 10:19 AM, Option1307 (29.96) wrote:

Heat, so cheap right now!

I can't say I ever thought I'd see it under $6. This is so so tempting but with today's strong move down on large vol., we just greatly increased our chances of retesting the Feb. market lows.

Note to self, stay far far away from China right now...

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#11) On May 20, 2010 at 12:23 PM, rexlove (99.54) wrote:

I bet a good portion of my real life portfolio on China and feel pretty good about their outcome. My only big concern could be some financial irregularities that may surface on some of these stocks. In any event, if you were thinking about buying some Chinese stocks - NOW would be the time. They have taken on the chin recently and have some really good entry points. 

I just picked up some CSKI yesterday. Already had HEAT and CDCS. Also have some TPI, QXM, NTE and FSIN. Go China! 

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#12) On May 20, 2010 at 1:04 PM, EnigmaDude (84.94) wrote:

I'm surprised that nobody has (yet) mentioned Longwei Petroleum (LPIH.OB).  Or AgFeed Industries (FEED).  In general, I agree with the risk/reward proposition that you have suggested but the timeframe may be longer than many on CAPS are comfortable with. 

I just added more shares of LPIH to my real life portfolio after they reported a 95% increase in sales and a nearly 100% increase in net income from a year ago.  Meanwhile their stock continues to fall.

It will be interesting to see what happens in the Chinese market over the next 2-3 years...

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#13) On May 20, 2010 at 2:04 PM, engstocker (< 20) wrote:

What would you recommend for a S&P equivalent or Total Stock market equivalent China index fund?

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#14) On May 20, 2010 at 2:05 PM, SuperPicks (29.10) wrote:

Anyone been paying attention to portions of the world market & how they were valuing Chinese equities?

Even BEFORE the blowup, many many equities were trading at what appeared to be deep valuation discounts relative to their international counterparts if you look at the financial ratios.

Its as if Mr Market, or sides of it, were discounting, a few cases of fraud cooked within the statements of a few of the members of Shanghai index. 

Anyone concerned about fraud?

What is the likelihood that one or more of the above mentioned securities (or others not on this list within Shanghai index) will be exposed to financial statement fraud - having material misstatements. 

Remember the Satyam blowup in India?  That was AFTER the crash in 2008.

If I had a gun pointed to my head and I had to wager which companies by percentage are more likely to have fraudulently material misstatements in its books, the US or China? I would bet China has more roaches.  So I'm going to wait until a roach comes out & there's real blood before jumping into China (anymore exposure- I'm already burning on APWR & CCME).

Please, anyone respond to thoughts on this, Ultralong or anyone else.

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#15) On May 20, 2010 at 2:07 PM, SuperPicks (29.10) wrote:

errr, my aka APJ4

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#16) On May 20, 2010 at 3:17 PM, JaysRage (89.80) wrote:

I'm not sure that the blood letting is over in China.    As a sector they are clearly way oversold, especially in comparison to their U.S. counterparts.   Chinese small caps, in particulary, which, as mentioned, were ALREADY discounted due to inherent accounting/transparency risks have been crushed even further down to ridiculous valuations.    However, that doesn't mean it's over.   Because the grand majority of people "investing" in these stocks don't have clue 1 what they were putting their money in to begin with, they are dumping them all, rather than trying to figure out which ones are worth their money.   In addition, short-sellers, smelling blood have jumped on with equal lack-of-understanding and abandon.  

If deflation continues, expect Chinese stocks to continue to take a beating.  They are tied to commodities.  Fairly or unfairly, that is what is happening.   As commodity prices have plummeted, so have Chinese stocks.   Once you're comfortable investing in commodities, then you should jump into Chinese stocks, and not before.  

 

 

 

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#17) On May 21, 2010 at 1:26 AM, walt373 (99.84) wrote:

I think one of the best ways to protect against this is to watch FCF. Cash flow is much harder to manipulate than earnings. If FCF >= earnings, unless the company is downright lying about cash, fraud is a lot less likely.

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#18) On May 21, 2010 at 1:32 AM, walt373 (99.84) wrote:

Oh and XIN looks sick. The downtrend is enormous though, so I'm gonna wait for it to stabilize a little. I used to catch falling knives, until I lost a few fingers. If this was me from 08, I would've bought some around 3.60. Momentum is real...

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#19) On May 21, 2010 at 1:47 AM, walt373 (99.84) wrote:

Ah who am I kidding, I will probably buy some tomorrow lol.

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#20) On May 21, 2010 at 10:10 PM, patternpro (< 20) wrote:

hugh hendry just released a new electica statment on why china is a bad play right now, lots of depth on it. makes a lot of sense before anyone buys china check it out. not saying its a bad move hugh just gives an opposing view to the china trade

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#21) On May 26, 2010 at 11:42 PM, Monkeylochs (< 20) wrote:

I have invested heavily in Chinese stocks based on valuations that seemed too good to be true.  I own, DEER, HEAT, XIN, WATG, CEU, HOGS, AND CSR.  I think the key is being patient.  Now, in my opinion is the time to buy more while the prices are so low.  Investor sentiment will change.  Wait till the end of the 3rd and the 4th quarter when the U.S. economy builds some good speed and more confidence returns.  Then everyone will want to partake in the hot Chinese stocks.

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#22) On May 27, 2010 at 4:31 PM, chimpcontest (< 20) wrote:

I like your A example in C.H.I.N.A..... there is nothing truer with a Chinese stock than that

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#23) On June 02, 2010 at 11:35 AM, Turgorosas2 (< 20) wrote:

what's your opinion on SUTR?

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#24) On June 12, 2010 at 2:09 PM, reachmygoals1 (< 20) wrote:

I do expect china for a quick recovery since they are a cash nation.

I noticed the government has spent billions into infrastructure and I started buying china advanced construction with $1.00 eps at current price, its undervalued.  roth capital placed a $8.00 price target a few months ago.  What do you think of CADC?

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