microman

Bullish on Chinese Microcaps

Amen opica. And EID, why would we want one more analyst in the already-crowded listed ranks? Little value-added there. Folks that provide good ideas in the .OB and sometimes .PK markets are serving a much needed niche.

Bullish on Chinese Microcaps

Wow, you commenters sure find it easier to bash than to go out on a limb on a public forum and post some ideas. The amount of DD presented here is perfect for tickling our brains to see if further DD is warranted. No need for a 10-page research summary for a message board.

In addition to the stocks mentioned by the author, all of which I'm familiar with, I would also add a few more to the mix: CYXI.OB and CHBU.OB.

Of course these also have the "Chinese Fraud Discount", but are worth a look for speculators.

Hot China Stocks: A Bubble to Avoid

A few comments on this short-sighted and poorly-researched article. First, the stocks listed have China operations, but are not necessarily ADRs/ADSs. Second, I trade these stocks regularly, and other than FEED, rarely see a spread more than a dime, let alone fifty cents. Third, the five stocks mentioned by the author are NOT created equally. Each needs to be analyzed separately. Fourth, one of the MANY attractive features of these stocks is the superiority of the growth rate compared to American stocks in the same or similar sectors. PE's "for a particular space" is too generic; such analysis needs to take into consideration growth rate, not just what sector a company is in. In fact, when considering the macro case for companies doing business in China, I would argue the point that DESPITE the recent runs on these stocks, only now are they starting to catch up to where they should be valued based on their powerful fundamentals. One caveat: It's probably a better approach to TRADE the US-listed China sector than to fall in love. I like the strategy of getting in them early (e.g. nobody has picked up on HQS yet), let them double, sell half, and let the rest ride for free.