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Individual investor with a Top down approach. I don't believe in diversification. Spreading your chips across the table is senseless to me, when based on good old economic fundamentals only certain areas of the market are poised to benefit in certain stages of the economic cycle.
  • Yong Versus CAGC 0 comments
    May 13, 2010 6:38 PM | about stocks: YONG, CAGC, FXI, HAO
    Chinese Ag plays are getting stronger. But with mixed valuations fundamentally.

    CAGC is at $16 per share while YONG trades at $8 per share. YONG has about 44 mil shares out while CAGC only has 18 mil shares out. CAGC is more volatile because of the lower float. However should that volatility merit a stock price that is double that of YONG? Especially when YONG has better earnings and fundamentally is the strongest of the two. There is a  head and shoulders pattern forming in CAGC 1 year chart, if it forms the right shoulder, that should bring CAGC valuation more in in line with YONG assuming YONG continues go up in price and the completed head and shoulders pattern in CAGC brings it stock price down. 

    Certain niches in China are gaining traction, although that is not reflected in the FXI or HAO.

    However these niches are proving to be outperforming all markets all together. Seasonally most ag stocks are at their highest prices for the year in the summer. I would hope that remains the case for this Summer.

    You can check the charts for all companies mentioned here. Support and resistance and trendlines are drawn for you.

    Stocks: YONG, CAGC, FXI, HAO
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