Mathews

Is China the Next Great Bubble?

What's China's biggest bubble? I don't think it is lending money to the US for exporting its goods. This is a problem, but not the biggest one. The biggest problem is that China is keeping a very high domestic investment rate. In the past 5 years the total investment of China exceeded 50% of the GDP, and this year the number may be more than 60% due to the record loan. The fast growth of China is mainly supported by such high domestic investment rate. This certainly cannot last forever, and one has to worry about what will happen when such fast growth comes to an end. A logical question is can the huge bank loans be returned with interest ? And will the accumulating bad loans lead to a financial crisis? I think in 3-5 years we will see the answers to these questions.

China Natural Resources' 70% Leap Just Another Bubble

I agree with you. In fact in my opinion not only this one, many (or you can even say most) other China stocks are overvalued.

However, one still can find undervalued ones, mainly in OTCBB market. For example, SUOT is a new stock in OTCBB, just announced the result of the year ended June 30. Revenue grew 59.2% and net income grew 78.0%, with EPS = $0.59. The price now is under $6.

China's On Fire: Still Time to Jump In?

Many of China stocks are overvalued in my opinion, including those mentioned in the article. However, one still can find undervalued ones, mainly in OTCBB market. For example, SUOT is a new stock in OTCBB, just announced the result of the year ended June 30. Revenue grew 59.2% and net income grew 78.0%, with EPS = $0.59. The price now is under $6.

Shengda Tech: A Cheap Chinese Smallcap

Jim & Dy-- According to quotes.nasdaq.com, the volume in the ordinary trading hour is 2,315,971, and in the after hour trading is 1,175,986, so the total volume is t 3,491,957.

From 10Q of SDTH, you may find the share outstandings equals 54.095mil; the major shareholder is Eastern Nano which holds about 45mil; the share holders of the reverse mergered Zolite held about 3.137mil; and the remaining about 5.83mil is held by some "institutional and accredited investors" who paid $15mil for these shares. The cost of these "investors" is about $2.58 per share. So if they sold on Friday at $5.62, they got 117.8% return in less than 3 months. Why shouldn't they sell?

The important information is that there are big buyers who bought as much as 3mil shares, about one third of the float. More important, since those "investors" cashed out, there won't be heavy selling pressure anymore. --- We'll see.