Looking to gain exposure to emerging markets such as China? With this idea in mind, we ran a screen.
We began by screening US-traded stocks of companies based in China for those with high growth projections, with 5-year projected EPS growth rates above 15%.
We then screened for those with bullish sentiment from short sellers, with significant decreases in shares shorted month-over-month representing at least 1.5% of share float. This indicates that short sellers are less bearish on these names than they were a month ago.
For an interactive version of this chart, click on the image below. Analyst ratings sourced from Zacks Investment Research.
Tool provided by Kapitall.
Do you think these companies will meet their high growth expectations? Use this list as a starting point for your own analysis.
List sorted by decrease in shares shorted as a percent of share float.
1. Youku Inc. (NYSE:YOKU): Operates as an Internet television company in the People's Republic of China. Market cap at $2.72B, most recent closing price at $23.73. 5-year projected EPS growth at 38.33%. Shares shorted have decreased from 9.95M to 8.17M over the last month, a decrease which represents about 3.54% of the company's float of 50.27M shares. Days to cover ratio at 3.5 days.
2. Home Inns & Hotels Management Inc. (NASDAQ:HMIN): Develops, leases, operates, franchises, and manages a chain of economy hotels in the People's Republic of China. Market cap at $947.53M, most recent closing price at $20.88. 5-year projected EPS growth at 20.00%. Shares shorted have decreased from 4.81M to 4.21M over the last month, a decrease which represents about 2.47% of the company's float of 24.25M shares. Days to cover ratio at 8.35 days.
3. Trina Solar Limited (NYSE:TSL): Designs, develops, manufactures, and sells photovoltaic modules worldwide. Market cap at $427.51M, most recent closing price at $6.13. 5-year projected EPS growth at 19.30%. Shares shorted have decreased from 16.46M to 15.31M over the last month, a decrease which represents about 1.74% of the company's float of 66.02M shares. Days to cover ratio at 5.9 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.