The Chinese stock market has been one of the worst performing stock markets this year, up by only 4% or so for the year and down 22% for the past year, but things are starting to look up with the recent announcement of a loosening of the quotas that cap the amount of foreign capital that can flow into the Chinese stock and bond markets.
It's worth noting that NextCandle.com's stock forecasts can be used by traders and investors who want to ride the dragon again by investing or trading Chinese stocks listed on US exchanges. For example: On Thursday before the market opened, NextCandle.com issued the following stock forecasts for these three Chinese stocks:
- Daqo New Energy (NYSE:DQ) had a 90% probability of hitting a lower low.
- China Information Technology (NASDAQ:CNIT) had an 81% probability of hitting a lower low.
- Qihoo 360 Technology (NYSE:QIHU) had an 80% probability of hitting a lower low.
And the results on Thursday when the market closed for the week:
- Daqo New Energy (DQ) fell $0.04 or 1.91% to $2.05. Daqo New Energy (DQ), which manufactures and sells polysilicon for photovoltaic product manufacturers plus further processes it into ingots, wafers, cells and modules for solar power solutions, had immediately opened below its $2.09 closing price and had a daily trading range of $2.03 to $2.07. Investors should note that last March, Daqo New Energy (DQ) took a big impairment charge plus posted a fourth-quarter loss after being hurt by a sharp fall in demand for solar products.
- China Information Technology (CNIT) fell $0.03 or 2.68% to $1.09. China Information Technology (CNIT), a provider of integrated solutions for the Geographic Information Systems (NYSE:GIS), Digital Public Security Technology (NYSEARCA:DPST) and the Digital Hospital Information Systems (DHIS) markets, had immediately opened below its $1.12 closing price on Wednesday and stayed below that level with a daily trading range of $1.06 to $1.11. China Information Technology (CNIT) has recently regained compliance with NASDAQ after its stock price began consistently closing above $1.
- Qihoo 360 Technology (QIHU) fell $0.02 to 0.09% to $22.98 and ranged $22.21 to $23.47 during the day. Qihoo 360 Technology (QIHU), which is involved Internet services and the sales of third party anti-virus software, Internet and mobile security products, had opened for a higher high but by 11am, it dropped below its Thursday closing price. Investors should note that on Tuesday, Qihoo 360 Technology (QIHU) crashed as much as 16% and ultimately fell from its close of $15.56 on Monday to close at $23.83 after a Forbes article questioned the company's finances. Specifically, Forbes reported that Deloitte may audit the company's Q1 results more stringently than previous results and this audit may be complicated by the fact that the company has transitioned from selling software (easy to track) to receiving most of its revenue from ad sales. However, Qihoo 360 Technology (QIHU) came out swinging with a press release of its own defending itself.
Of course, the actions of short-sellers who make allegations about the financials of Chinese stocks are hard to predict or forecast. Nevertheless and if you are thinking of getting back into volatile Chinese stocks, Next Candle's stock forecasts for Daqo New Energy (DQ), China Information Technology (CNIT) and Qihoo 360 Technology (QIHU) certainly would have helped you make more profitable trades on Thursday.
NOTE: THIS PIECE WAS JUST POSTED ON OUR BLOG AT http://www.nextcandle.com/blog/2012/04/review-nextcandlecom%E2%80%99s-top-stock-forecasts-chinese-stocks