Three China Stocks to Watch This Week

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 |  Includes: CHFI, JNGW, WUHN
by: China OTC Player

1) In another case of net income jumping by more than 100%, Jingwei International (NASDAQ:JNGW) reported its FY2007 results and net income rose by a really impressive 122%, from $3.8 million to $8.4 million. In fact, this growth is accelerating. Evidence: Q4 2007 net income increased by a whopping 767% to $3.2 million from $373,000 in Q4 2006, and up 150% from Q3 2007. Yet, this stock is down by over 40% from the high achieved in October 2007. Do investors realize that it wouldn't be out of the realm of possibility for the company to register an EPS of $1.00 for 2008?

2) One Chinese company that we need to pay more attention to is China Finance (OTCPK:CHFI), for, as an investment vehicle, it owns stocks in various small caps including China 3C Group (CHCG.OB), Universal Travel Group (UTVG.OB) and Gulf Resources (GFRE.OB). It has been selling its holdings consistently in the past weeks and this is why we have seen the depressed prices for many of these stocks. China Organic Agriculture [CNOA.OB] will now be under pressure as the lock up period for CHFI ended on 3/14/2008. The question is, what is the bottom for CNOA, given that it is already under $1 per share?

3) Wuhan General Group (NASDAQ:WUHN) took another step towards a NASDAQ listing this past week by appointing an outside director to its board. Its recent 8K states: "Upon Mr. Zheng's appointment to the Board, the Company has a majority of independent directors, as defined by NASDAQ listing standards. The Company believes that it now complies with all NASDAQ corporate governance listing requirements. Although the Company has filed a listing application with NASDAQ, there can be no assurances that the Company will be able to obtain a NASDAQ listing." So the question now is: when will the approval happen, if it happens? And will there be a bump in the company's stock price in the meantime?

My Position: Long CHCG.OB and UTVG.OB.