microman

China's Agriculture Sector Is Ripe for Investment

GRO may be dead money for awhile, even though I like their business and overall focus.
CNOA.OB is interesting and a direct player in rice...a good place to be
CYXI.OB is another Chinese firm involved with rice, and garners quite a bit of their revenues from diabetic-friendly rice products. Fundamentals are excellent with CYXI.
I'll put one out there that nobody knows about...CHBU.OB. Trading near cash despite nice EPS, CHBU is on the fertilizer side of Chinese agriculture...worth a peek.

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.