Five China Stocks to Watch This Week

1) Since Sinoenergy (SNEN.OB) announced its financial results on Monday, its shares have traded down on each of four consecutive sessions. The company has great fundamentals and is eminently positioned to take advantage of the spiking crude oil prices. But is its CNG filling station roll-out fast enough to meet investor expectations?

2) With little news, tourism and mass media concern China Yida Holding [IAVA.OB] was up more than 40% on Thursday, with the gain sustaining on Friday. Is there good news on the horizon?

3) China Water and Drinks (CWDK.OB) has been experiencing some very unusual share price movements lately on very low volume, going from $6 to top $15 and now back to $10.25, all in the space of ten days. What in the world is happening?

4) Profitable Guilin Paper [GUPR.OB] registered its 52-week low of $0.40 on 1/3, for no apparent reasons. If I thought this stock was buyable at around $1.00 (estimated FY2007 EPS $0.11), can one say "fire sale"?

5) On the other hand, in its quiet corner, Wuhan General Group (WUHN.OB) has been inching ever closer to its 52-week high, closing at $16 on Friday. Did you know the company is expecting record earnings this year by making environment-friendly power plant components?

My Position: Long IAVA.OB.

Comments

[hari:]

Can you please write such articles every week on China stocks? It will be great to get insight into individual stocks in India and Korea as well. I've been looking for some thing like this and finally found it.

Also, I want to buy the Chinese stocks (not ETFs). My broker says they don't trade in China. How can I trade directly in Chinese, Korean, India and HK markets (no ETFs)?

2008 Jan 06 11:28 AM

[tessant:]

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2008 Jan 06 05:42 PM

[tessant:]

if anyone is interested in solar or alt energy, i just created a social network where u can join, blog, set up your own page, dload reports, and talk to others. check it out, its worth it. thanks guys

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scott

2008 Jan 06 05:42 PM

[ChinaMart:]

I agree these 5 stocks are all, for various reasons, "ones to watch." I am particularly bullish on SNEN over the long term, given the Chinese government's support of CNG growth combined with SNES's early mover advantage in the sector.

Additionally, there is one extremely undervalued China micro in LTUS.OB (Lotus Pharmaceuticals) that I believe is worth a closer look. This is a stock that has been oversold to the point where it now trades at a PE of 6 based on 2007 expected income of .18/share. The stock is thinly traded/unknown still, but that should change when their new IR firm is hired/announced.

LTUS has come off a triple bottom and was up 10% Thursday to $1.14/$1.20 on near-record volume and no news. Given the 100% income growth of LTUS yoy, their increasing margins, extensive drug pipeline, the hiring of a much needed IR firm which appears around the corner, and an extremely modest PE, LTUS.OB should be added to the list of "Ones to Watch".

Cheers,

2008 Jan 06 06:59 PM

[kkin365:]

Why do IAVA when you have CTRP and FMCN?

2008 Jan 06 08:41 PM

[User 137569:]

Keep an eye on TSGTY. China is going crazy with Tsing Tao Beer and with the Olympics coming? Any questions!!

2008 Jan 08 08:24 PM

[growthvalue:]

SNEN posted news today Sinoenergy Acquires Stake in CNG Wholesale Processing Plants, and Purchases New Manufacturing Site

2008 Jan 28 09:13 AM