Top China Small Cap Picks of 2011: Performance Year to Date

by: Natty Greene

As many China growth stocks approach the release of their 10K annual reports in the next two weeks, it is a good time to analyze the year to date performance of the top 2011 picks of the popular and well respected China Growth Stocks (CGS) board on Investor Hub.

As background, in November 2010 this collection of nearly 1,000 large and small retail investors submitted their personal 2011 top ten picks (hold for a year, no in and outs). The result was a list of 12 stocks for 2011 in this emerging China small cap space.

A review of the year to date performance shows that only three of the 12 stocks picked are in positive territory (UTA), (OTCQB:SIAF), (AERL).

CGS Index YTD (in order of ranking by CGS board member votes):

1. China MediaExpress Holdings (OTCPK:CCME) -17%
2. Universal Travel Group (UTA) +8 %
3. China North East Petroleum (NYSEMKT:NEP) -12%
4. Longwei Petroleum (LPH) -14%
5. China Ceramics (CCCLTE.OB) -13%
6. ZST Digital Networks (NASDAQ:ZSTN) -12%
7. Yongye International (NASDAQ:YONG) -18%
8. China Redstone Group (OTC:CGPI) -30%
9. Sino Agri Food (OTCQB:SIAF) +7%
10. Biostar Pharmaceutic (NASDAQ:BSPM) -15%
11. Asia Entertainment and Resources (AERL) +11%
12. Jada Art Group (OTCPK:JADA) -50%

CGS Index YTD (in order of performance YTD)

1. AERL +11%
2. UTA +8%
3. SIAF.PK +7%
4. ZSTN -12%
5. NEP -12%
6. CCCL -13%
7. LPH -14%
8. BSPM -15%
9. CCME -17%
10. YONG -18%
11. CGPI.OB -30%
12. JADA.OB -50%

The year 2011 has not exactly been what CGS investors expected when they cast their votes. But with valuations for most in the 3-7 forward PE range and healthy growth expected, you can rest assured that with a signed, sealed and delivered 10K audited filing, this list will look dramatically different in the very near future.

Those growth hungry investors who picked these names will be looking at the 10K reports with much anticipation and anxiety. It will be interesting to see which of these laggards deserves their heavy share price declines this year and which ones are just being thrown out with the bathwater.

Disclosure: I am long UTA, CCME.