I have always been fascinated with Chinese stocks trading on U.S. exchanges. This fascination has cost me dearly. If I had never seen or heard of a Chinese ADR, my portfolio would be about 40% higher than it currently is. I'm a sucker for a great growth story. And the idea of a communist country transitioning to a capitalist model made my mind run like crazy. I thought investing in China during 2004-2008 was going to be like investing in the USA circa 1920.

I was horribly wrong, but not because I made some horrible economic forecast or made a faulty calculation - I was wrong because most Chinese corporations see the world

We ran a screen on the tech sector for stocks that are outperforming the rest of the market, with quarterly performance above 20%.

We then screened these names for those seeing significant net selling from institutional investors over the last quarter - with net sales representing at least 5% of share float - indicating that institutional investors including hedge funds expect these names to underperform.

Are they proved wrong by these stocks' winning streaks, or are they destined to fall?

Interactive Chart: Press Play to compare changes in market cap over the last two years for the top six stocks mentioned below. Analyst ratings sourced from Zacks Investment Research.

Do you think these names have risen too far too fast? Use this

Daily Data: Chinese Stocks

Chinese stocks have been popular for quite some time. Investors have been attracted to the country's +8% GDP growth rate. The growth is so staggering that you can view videos on youtube.com of construction companies building 15-story hotels in just days!

Today, I looked up every Chinese company on finviz.com and screened all the tickers through the following criteria:

1. Chinese Stock
2. Minimum 5 years data
3. Currently trading over $10

The total number of tickers I found was 24 out of an original list of 210. The companies investigated are Aluminum Corp. of China (ACH), AsiaInfo-Linkage (ASIA), Baidu (BIDU), China Eastern Airlines (CEA), China Telecom (CHA), Ctrip.com (CTRP), New Oriental Education (EDU), Guangshen Railway (GSH), Home Inns (HMIN), Huaneng Power (HNP), Zhongpin (HOGS), 51job (JOBS), China Life Insurance (LFC), eLong (LONG), Mindray (MR), Netease (NTES), PetroChina (PTR), Sinopec (SHI), Sina (SINA), China Petroleum and

We ran a screen on the tech sector for stocks rallying above their 20-day, 50-day, and 200-day moving averages. We then screened for those with significant net institutional selling over the current quarter.

Despite this strong trading performance, institutional investors such as hedge fund managers expect these names to underperform.

Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the top six stocks mentioned below. Analyst ratings sourced from Zacks Investment Research.

We also created a price-weighted index of the stocks mentioned below, and monitored the performance of the list relative to the S&P 500 index over the last

We screened US-traded stocks of companies based in China for those with the most significant net insider purchases over the last six months. This indicates that company insiders, such as members of the board and upper management, expect their employers to outperform.

‪Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the stocks mentioned below. Analyst ratings sourced from Zacks Investment Research.‬

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We also created a price-weighted index of the stocks mentioned below, and monitored the performance of the list relative to the S&P 500 index over the last month. To access a complete analysis of this list's recent performance, click here.

Do you think these stocks will outperform like

We ran a screen on the tech sector for stocks seeing the most significant decreases in shares shorted month-over-month. This indicates that short sellers are less bearish on these names than they were before.

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Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the top six stocks mentioned below. Analyst ratings sourced from Zacks Investment Research.‬

We also created a price-weighted index of the stocks mentioned below, and monitored the performance of the list relative to the S&P 500 index over the last month. To access a complete analysis of this list's recent performance, click here.

Do

Ctrip.com International ADR (CTRP): CTRP is a China-based consolidator

For ideas, we ran a screen on next week's reporting companies for those with the most significant net insider buying over the last six months. This indicates that insiders, such as members of the board and upper management, who know more about their companies than any other investors, are bullish about their employer's prospects.

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Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the top six stocks mentioned below. Analyst ratings sourced from Zacks Investment Research.‬

We also created a price-weighted index of the stocks mentioned below, and monitored the performance of the list relative to the S&P 500 index over the last month. To access a complete analysis of this list's recent performance, click here.

Do

We ran a screen on U.S.-traded stocks of companies based in the BRIC countries (Brazil, Russia, India and China) for those trading at the most significant discounts from their analyst target prices.

Because target prices tend to be inflated, we only used the most pessimistic (i.e. lowest) target prices, and for companies with sufficient analyst coverage, we only included companies with five or more analyst ratings.

Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the top six stocks mentioned below. Analyst ratings sourced from Zacks Investment Research.‬

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We also created a price-weighted index of the stocks mentioned below, and monitored the performance of the list relative to the S&P 500 index over the last

These policies mitigate the conflict of interest between shareholders (who wish to maximize the firm's value) and management (who wish to maximize personal wealth). Institutional Shareholder Services (ISS) gives different companies ratings in four areas of corporate governance, on risks related to: the board, the audit committee, the compensation committee, and shareholder rights.

Companies with stronger corporate governance policies are viewed as safer investments to shareholders over the long term.

We ran a screen on US-traded stocks of companies based in China for those with the lowest corporate governance rankings (highest risk) from ISS.

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Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the stocks mentioned below. Analyst ratings sourced from Zacks Investment

1. Avanir Pharmaceuticals, Inc. (AVNR) RSI: 93.46

Avanir describes itself as a biopharmaceutical company that is focused on bringing innovative medicines to patients with central nervous system disorders of high unmet medical need. The company seems to be gaining traction as it continues to create greater awareness concerning its flagship product, Nuedexta, the only FDA approved treatment for PBA which, in turn, has lead to increasing revenues and, potentially, an increased interest in the company's stock.

The company currently has 132.47M shares out and its stock trades around $2.75, giving it a market cap of roughly $360.6M. The stock's three month average daily

We ran a screen on US-traded stocks of companies based in the BRIC countries (Brazil, Russia, India, and China) for those seeing positive sentiment from its insiders - we screened for those with the most significant net insider buying over the last six months.

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Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the stocks mentioned below. Analyst ratings sourced from Zacks Investment Research.‬

We also created a price-weighted index of the stocks mentioned below, and monitored the performance of the list relative to the S&P 500 index over the last month. To access a complete analysis of this list's recent performance, click here.

Do you think these names will outperform like insiders expect? Use this list as

We ran a screen on highly shorted stocks (with short floats above 20%, a bearish signal) that are also seeing bullish sentiment from company insiders, with significant net insider buying over the last six months.

Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the top six stocks mentioned below. Analyst ratings sourced from Zacks Investment Research.‬

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We also created a price-weighted index of the stocks mentioned below, and monitored the performance of the list relative to the S&P 500 index over the last month. To access a complete analysis of this list's recent performance, click here.

Do you think these stocks will soon turn around? Use this list as a starting point for your own analysis.

List sorted by net

We ran a screen on US-traded stocks of Chinese-based companies for those trading at steep discounts to even their lowest analyst target prices. Because target prices tend to be inflated due to analyst bullishness, we only considered the lowest, most pessimistic analyst target price. Also, for companies with sufficient coverage, we only included those with 5 or more target prices.

Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the top six stocks mentioned below. Analyst ratings sourced from Zacks Investment Research.

We also created a price-weighted index of the stocks mentioned below, and monitored the performance of the list relative to the S&P 500 index over the last month. To access a complete analysis of this list's

To further refine the list, we focused on companies that have seen significant short covering over the last month (i.e., short-sellers think the upside of these stocks outweighs the downside). This is significant, especially when you consider that short sellers tend to be more sophisticated investors (due to the fact that they require strict credit approval to perform these trades). So if these investors are turning bullish/optimistic on a stock, it's worth paying close attention.

Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the

Levered free cash flow is the free cash flow after deducting interest payments on outstanding debt. Enterprise value is the sum of the firm’s value from all ownership sources: market cap, outstanding debt, and preferred shares. From this value we subtract cash holdings because, in the event of a takeover, that cash would be used towards the takeover price.

We ran a screen on US-traded stocks of companies based in China for those with relatively high ratios of levered free cash flow/enterprise value, possibly indicating that they are undervalued.

Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the stocks mentioned below. Analyst ratings sourced from Zacks Investment Research.

We also created a price-weighted index of the stocks mentioned below, and monitored the performance of the list relative to the S&P 500 index over the

Shorting a share indicates a specific prediction that the stock’s price will soon fall, and because shorting requires significant amounts of borrowing, short sellers are given background checks to trade and are generally considered “smart money” investors.

We ran a screen on US-traded stocks of Chinese companies for those seeing bullish sentiment from short sellers, with significant decreases in shares shorted month-over-month.

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Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the top six stocks mentioned below. Analyst ratings sourced from Zacks Investment Research.‬

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We also created a price-weighted index of the stocks mentioned below, and monitored the performance of the list relative to the S&P 500 (SPY)

Levered free cash flow is the free cash flow after deducting interest payments on outstanding debt. Enterprise value is the sum of the firm’s value from all ownership sources: market cap, outstanding debt, and preferred shares. From this value we subtract cash holdings because, in the event of a takeover, that cash would be used towards the takeover price.

We ran a screen on US-traded stocks from the BRIC countries (Brazil, Russia, India, and China) for those with the highest ratios of levered free cash flow to enterprise value, possibly indicating that they are undervalued.

Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the top six stocks mentioned below. Analyst

We ran a screen on Chinese companies traded on U.S. exchanges for those trading at steep discounts to their analyst target prices, which may indicate that they are undervalued.

But because target prices are notoriously inflated, we only used the most pessimistic (the lowest) target prices, and for stocks with sufficient analyst coverage we only screened for stocks with five or more analyst ratings.

Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the top six stocks mentioned below. Analyst ratings sourced from Zacks Investment Research.‬

We also created a price-weighted