By Max Magee
While the market was positive last week for the first time in six weeks, speculative segments continue to struggle, weighed on by economic concerns, and, for Chinese names especially, ongoing concerns about accounting irregularities.
After last week's action, Chinese Indexes are in the five top spots among our poorest performing Indexes over the last month.
Worst Performing tickerspy Indexes, 1 month
Chinese Internet Stocks
Chinese Auto Parts Stocks
Chinese IT Stocks
While there are many questions surrounding the stocks in these segments, it's inevitable that at least some will ride out the current weakness. With many stocks looking expensive - even after the latest pullback - adventurous speculative investors may be interested to see which Chinese names have been hit the hardest.
Chinese Healthcare Stocks Index: The worst performers over the last month have been China-Biotics (NASDAQ: CHBT), China Biologic (NASDAQ: CBPO), and China Sky One Medical (NASDAQ: CSKI). Probiotics products producer China-Biotics has endured a sharp drop of 66%. Blood products producer China Biologic has dropped by 34%, and China Sky One, a producer of nutritional supplements, is down 32%.
Chinese Agriculture Stocks Index: The worst performers in this segment over the last month have been China Organic Agriculture (Pink Sheets: CNOA), China Green Agriculture (NYSE: CGA), and Origin Agritech (NASDAQ: SEED). Micro-cap China Organic is down 57%. Fertilizer producer China Green has dropped 40%. Crop seed company Origin Agritech has fallen 37%. Elsewhere in the sector, fertilizer producer China Agritech (Pink Sheets: CAGC) has been delisted and resumed trading sharply lower on the pink sheets.
Chinese Internet Stocks Index: The worst performers in this segment have been a trio of once highly touted IPOs: Renren (NYSE: RENN). E-Commerce China Dangdang (NYSE: DANG), and Youku.com (NYSE: YOKU). Social networking website Renren is down 46%, Online retailer Dangdang is down 45%, and Youku.com, China's answer to YouTube, is down 41%.
Chinese Auto Parts Stocks Index: The worst performers in this segment have been SORL Auto Parts (NASDAQ: SORL), China Zenix Auto (NYSE: ZX), and China Automotive Systems (NASDAQ: CAAS). In addition, trading in Wonder Auto Technology (NASDAQ: WATG) has been halted for over a month after the firm failed to file a 10-K for 2010 and announced an internal accounting investigation into prior results. Air brake system manufacturer SORL is down 31%. Recent IPO China Zenix has fallen 24%. China Automotive, which is in the process of restating prior financials, though trading there has not been halted, has dropped 13%.
Chinese IT Stocks Index: The worst performers over the last month have been iSoftStone Holdings (NYSE: ISS), China TransInfo Tech (NASDAQ: CTFO), and China Information Technology (NASDAQ: CNIT). IT services provider iSoftStone is down 30%. Public transportation IT firm China Transinfo has dropped 29%. Diversified IT systems provider China Information Technology has been pulled down 27%.
Note: all percentages cited as of early Monday, June 20.