The complete list of Chinese ADRs traded on U.S. organized exchanges is listed below:

Investors imbue analysts with high levels of credibility at their own risk. Wall Street analysts communicate in their own cryptic language that may impersonate English but rarely means what it says. When is a buy a buy and a hold a sell? In his book, Full of Bull, former Wall Street analyst, Stephen McClellan, divulges many of the open secrets about analyst-speak that gets retail investors in trouble.

This analyst double-speak is the basis for this week's screen. Analysts are often stuck upgrading or downgrading a stock after the big move in the stock has already happened. Here was the criteria for the screen:

Overview: China Nepstar Chain Drugstore, Ltd. (NPD) is the largest drug store chain in China with over 2,600 stores located mainly in eastern China's urban centers. Nepstar's story is one of consolidation. China's drug store industry is highly fragmented, with Nepstar accounting for only .5% of the country's drug store revenues. Instead, China's drug store industry is dominated by "mom and pop" stores, and local chains, similar to the United States before the wave of consolidation resulting in the Walgreens (WAG), Rite-Aid (RAD) and CVS behemoths. Through consolidation, Nepstar will continue to develop its brand value, with the goal of becoming the "go-to" drug store (or one of them) for China's enormous urban population. It is also in the process of developing a higher-margin private label line of OTC medicine and other health products, which thus far is largely absent from the Chinese market.

This is the Third Quarter 2008 edition of our ongoing hedge fund tracking series. Before reading this update, make sure you check out the preface to the series we're doing on Hedge Fund 13F's here.

The other funds we've already covered include:

Q3 2008 Earnings Call

November 26, 2008 8:00 am ET

Many foreign stocks that trade as ADRs in the US have fallen heavily in-line with their home country’s market performance. In order to identify the ADRs that are down more than 80% year-to-date, I ran the screener and ended up with the 38 stocks listed below.

Foreign ADR Stocks Down > 80%

Goldman Sachs usually provides investors with strong returns from IPOs it lead underwrites. However, China Nepstar Chain Drugstore (NPD) turned out to be one of the biggest disappointments to the firm's credit.

Since coming public in November of last year at more than $16 a share, NPD has cratered. Last week, the stock may have reached a crescendo in price depreciation by hitting an all-time intra-day low of 3.87 following the company's Q2 earnings report. This capped off 17 straight days of selling on the unpopular drugstore chain.

Q2 2008 Earnings Call Transcript

August 27, 2008 8:00 am ET

July was a volatile month for the U.S. markets. The Dow Jones Industrial Average started the month with some big losses, even closing below 11,000 for the first time in two years on July 15th. But since then, the index has reclaimed some of the losses after a pair of strong rallies, fueled by declining oil price. For the month, the Dow rose a meager 0.25%, the NASDAQ rose 1.42% and the broader S&P 500 index declined just about 1%.

During the month, the Shanghai Composite Index (^SSEC) showed some signs of life, briefly going over the 2,900-point mark early in the month before settling at 2,775.72. That’s a gain of 1.45%. The Hang Seng Index (^HSI) also recovered from the deep drop in June, gaining 2.84% in July.

Comparing to what happened to Chinese stocks listed on U. S. stock exchanges, the drop in major U. S. equity indexes is minor, though the Dow Jones Industrial Average did lose more than 10% in just one month (10.19%). During the same time period, the NASDAQ dropped 9.12% and the S&P declined 8.57% as jitters in the financial sector continued and there was no sign that the housing market has bottomed. In fact, the loss in June was the severest monthly loss since the Great Depression.

However,  if you are investing heavily in Chinese ADRs (like me), then I am sure you feel even more depressed when looking at your stocks’ performances last month. Of the 82 Chinese ADRs I track regularly, only 6 of them ended the month in the positive territory. All other 76 stocks dropped, and they dropped like a rock: 30 stocks lost more than 20% and 10 more than 30%.

Q4 2007 Earnings Call

March 19, 2008 8:00 am ET

China Nepstar Chain Drugstore Ltd. (NYSE: NPD), the largest drugstore chain in China based on the number of directly operated stores, announced yesterday that it will acquire all of the 68 drugstores including inventory and store equipment owned by Ningbo New Century Medical Ltd. ("New Century") for cash consideration of RMB30 million (US$4.1 million). China Nepstar expects to take over the operations of the acquired stores in March 2008, upon completion of the acquisition.

In its latest Quarterly Report, Baron Asset Fund explains why it believes China Nepstar (NPD), the leading drugstore chain in China, will pay off handsomely for its long-term investors:

Q3 2007 Earnings Call

December 11, 2007 8:00 am ET

China Nepstar Chain Drugstore (NYSE: NPD), the largest retail drugstore chain in China based on the number of directly operated stores, jumped on its first day of NYSE trading. Nepstar priced 20,625,000 American depositary shares (ADSs) at US$16.20 each, exceeding its earlier expected range of US$11.50 to $13.50 per share.

This much anticipated IPO was greeted eagerly by investors.Nepstar has 1,791 directly operated drugstores located in 62 cities in China. The company reports that it had the highest revenue among all directly operated retail drugstore chains in China in years 2004 through 2006. With FY 2006 revenues of US$227.6 million, the company states its revenue CAGR from 2004 to 2006 was 43.4%. For the six months ending June 30, 2007 the company had revenues of US$124.3 million, an 18.4% increase over the same period last year.

Going into this week, China Nepstar (NYSE: NPD) had a price range on its public offering at $11.50-$13.50.  Well, as is usual for Chinese IPOs, it was too low. Thursday, China Nepstar priced its shares at $16 and as of this writing, the stock is up 17%.

China Nepstar is the largest retail drugstore chain in China, with a network of 1,791 stores in 62 cities.  Yet, China Nepstar’s market share is only 0.5%.  But with its IPO, the company is likely to scoop up a variety of competitors.

Investment in China biopharma prospered last week across a varied front. In a new story, Lilly (LLY) announced that its initiative called Lilly Asian Ventures has plans to invest $100 million in up and coming China biopharma over the next five years. Pointing out that 20% of its researchers are Chinese in origin, Lilly says the new initiative will take Lilly to the innovators, rather than asking the innovators to come to them. Earlier this year, Lilly Asian Ventures made its first investment, putting $10 million with BioVeda China, a venture capital fund seeking to place money with companies that have the potential to become large multinational biopharmas (see story).

Lilly Asian Ventures now will make direct investments in China biopharmas. It is in talks with ten China startups and expects to make announcements with some of them in the first half of 2008, according to GBInformation. Lilly Asian Ventures is an arm of Lilly Ventures, which manages more than $175 million internationally. During the past week, Lilly Ventures opened its China headquarters in Shanghai's Pudong District.

Remember market conditions? The blanket excuse that is trotted out whenever any company fails to find investors in an IPO? Well, market conditions are a little dicey at the moment, but China Nepstar (NPD) nevertheless managed to price its IPO at $16.20, which was 30% above the proposed range of $11.50 to $13.50. Prospects trump market conditions, again.

In very early trading, China Nepstar moved another $2.80 higher to $19 per share.

There are three Chinese companies set to go public in the U.S. this week: Agria Corporation (GRO), a provider of agricultural upstream products such as corn seeds, sheep breeding products and seedling productions; AirMedia Group (AMCN), a company that operates the largest digital media network in China dedicated to air travel advertising; and China Nepstar Chain Drugstore (NPD) the largest retail drugstore chain in China.

All quotations are from the companies' most recent S-1 filings with links provided.

China Nepstar Chain Drugstore Ltd. (NYSE: NPD) on Friday filed the terms of its upcoming IPO with the SEC. According to the filing, Nepstar will be offering 20,625,000 American Depositary Shares [ADS] with an initial public offering price per ADS between US$11.50 and US$13.50. Each ADS will represent 2 ordinary shares of Nepstar. The offering is expected to bring in as much as US$278 million.

Nepstar has 1,791 directly operated drugstores located in 62 cities in China. The company states that it is the largest retail drugstore chain in China based on the number of directly operated stores, and that it had the highest revenue among all directly operated retail drugstore chains in China in 2004, 2005 and 2006. With FY 2006 revenues of US$227.6 million, the company reports its revenue CAGR from 2004 to 2006 was 43.4%. For the six months ending June 30, 2007 the company had revenues of US$124.3 million, an 18.4% increase over the same period last year.