globalmacro

China Stocks: April Was Kind

Lord Kraken, what about all the stocks trading on the NYSE? They're not trading at a 40/50 PE. In fact some of the NYSE traded multiplayer online game companies like GA and PWRD, have half of their market capitalization in cash, 60-80% operating margins, growth rates over 100%, and trade at forward PEs under 20. You're clearly only focusing on the stocks that local Chinese can buy. As an American, you can buy the cream of the crop at very reasonable valuations.

China Stocks: April Was Kind

There are some really high quality names on this list. China's consumer is just beginning to come of age and I suspect that China's consumer will have an equal weight with the US consumer a few years prior to the 2020 target set by a number of prominent economists and research firms. The 50% selloff in China's A share market is a great opportunity.

Baidu: A Train Heading for Derailment?

This article is dumb, dumb, dumb. Comparing Baidu to US airlines is a laughable exercise. Every Chinese stock has a huge short interest -- call it the bandwagon effect. The fact that a Chinese stock has a large short interest is completely meaningless except for the fact that it should provide for an extra pop when sentiment shifts. In 2000, companies with earnings were trading at a PE of 2,000 and most of the .com's weren't even profitable. Baidu is profitable and growing very fast. Your comparisons are elementary and flat out incorrect. Many of the Chinese stocks listed on the NYSE are some of the most attractively valued securities that can be found anywhere in the world currently.