5 China Stocks on This Week's Watch List

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 |  Includes: CANL, CTFO, GURE, PUDA, SGTI, SNEN
by: China OTC Player

1) News broke on Friday that the Chinese authorities will now curb the industrial use of corn to prevent soaring food prices. This will clearly affect ethanol producers, but how will it impact Shengtai Pharmaceutical (OTCPK:SGTI), a company completely dependent on its use of corn to produce corn starch and glucose? And even if this doesn't apply to SGTI, isn't rapidly rising raw materials cost bad enough?

2) China TransInfo Technology (NASDAQ:CTFO) dropped a bomb last week by announcing that it will be restating its Q2 and Q3 figures as there appears to be a "decrease in the fair value of accrued warrant liabilities". The 8-K filing was short and cryptic, giving us little clue how this will affect CTFO's earnings. Is it any wonder that the company shares traded down over 13% on Friday?

3) China Natural Gas (OTC:CHNG) is quickly moving ahead of Sinoenergy (SNEN) in the battle to create a network of CNG (compressed natural gas) filling stations. CHNG just added two more this week, giving a total of 26, compared to SNEN's three. But SNEN has plans to open another 30 by June 2008, so who is going to win the race?

4) Gulf Resources (GFRE.OB) announced that it has secured a major contract to supply a subsidiary of China National Petroleum Corp (CNPC) with oil refining chemical additives. This is expected to amount to $20 million in revenues, which is huge compared to GFRE's FY2007 9-month revenues of $38.5 million. The question now is, how is this deal going to affect the company's previous revenues guidance of $87 million for FY2008?

5) With little news, Puda Coal's (PUDC.OB) share price jumped by over 25% on Friday, after hitting a 52-week low of $0.40 earlier last week. Is this finally the turning point for this beleaguered coal supplier, or is it just another temporary blip, something that its jaded investors have all seen before?