Interested in investing with Chinese stocks? For ideas on how to start your search, we ran a screen you may find interesting.
We screened for US-traded stocks of companies based in China. We then screened for stocks with bullish sentiment from short sellers, with significant decreases in shares shorted month-over-month. This indicates that short sellers are less bearish on these names than they were a month ago.
Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the stocks mentioned below. Analyst ratings sourced from Zacks Investment Research.
Do you think these stocks are poised to move higher? Use this list as a starting point for your own analysis.
1. Changyou.com Limited (NASDAQ:CYOU): Develops and operates online games in the People's Republic of China. Market cap at $1.24B, most recent closing price at $23.49. Shares shorted have decreased from 903.99K to 756.26K over the last month, a decrease which represents about 1.49% of the company's float of 9.89M shares. Days to cover ratio at 4.74 days.
2. New Oriental Education & Technology Group (NYSE:EDU): Provides private educational services primarily in the People's Republic of China. Market cap at $736.9M, most recent closing price at $19.19. Shares shorted have decreased from 13.26M to 11.64M over the last month, a decrease which represents about 1.29% of the company's float of 125.59M shares. Days to cover ratio at 4.39 days.
3. Spreadtrum Communications Inc. (NASDAQ:SPRD): Operates as a fabless semiconductor company that designs, develops, and markets baseband processor and RF transceiver solutions for wireless communications and mobile television markets. Market cap at $825.28M, most recent closing price at $17.98. Shares shorted have decreased from 4.21M to 3.83M over the last month, a decrease which represents about 1.15% of the company's float of 33.00M shares. Days to cover ratio at 4.63 days.
*Short data sourced from Yahoo! Finance, all other data sourced from Finviz.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
Business relationship disclosure: Kapitall is a team of analysts. This article was written by Sabina Bhatia, one of our writers. We did not receive compensation for this article (other than from Seeking Alpha), and we have no business relationship with any company whose stock is mentioned in this article.