Energy Stocks Push Chinese Small Caps to Record Highs

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 |  Includes: CELM, CSGJ, JGBO, LLEN, LPIH
by: China OTC Player

By Platinum Tiger

Broad-based strength on Friday and a surging energy sector more than made up for losses earlier last week to drive the 35 issue Rising China Stocks index to its third straight weekly gain and a new record weekly high close.

Gainers outnumbered decliners by a nearly 3 to 1 ratio on Friday, extending the bullish trend in Chinese small caps to three weekly gains in a row and eight higher closes in the past ten weeks. The RCS index is now up 19.2 percent for the year, as compared to a 12.4 percent gain for the Russell 2000, 7.1 for the S&P 500, and a 4 percent loss for the Shanghai Composite index.

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Energy stocks L&L Energy (NASDAQ:LLEN) and Longwei Petroleum (OTC:LPIH) posted big gains that compensated for relative weakness in the pharmaceutical, metals & mining, consumer and real estate sectors. Other big individual gainers included China Shuangji Cement (OTC:CSGJ) and China Electric Motor (OTCPK:CELM), each up by 30 percent for the week, perhaps as a result of attention from being highlighted as "Top Undervalued Stocks" on TheStreet.com.

In my last article I noted another deeply undervalued stock, Jiangbo Pharmaceuticals (OTCPK:JGBO), which - despite a complete absence of negative news - has not had a positive trading session in the last two weeks, and which is now priced at a forward PE of about 2x, less than the value of its cash holdings.

I'll soon highlight several stocks that have reached new highs or issued new technical alerts.

Disclosure: Long JGBO.OB, LLEN, LPIH.OB