With an expected technical rebound in the stock market, the cynosure of many eyes lies on how the dwindling-valuing large cap blue chip stocks will fare and whether this downtrend will finally see a ray of hope. After all, though optimism exists whenever there are indications of good revenue growth of corporations, critical events like those in the Middle East do tend to hamper the investor sentiments with the result that the cloud of uncertainty continues to hover over the market and the investor is once again placed in a spot of indecision as regards where and when to put his money.
In recent times, there have been growing talks about the Chinese economy being on the rebound. So if one has faith that the country’s gross domestic profit has chances of picking up the pace in 2013, it could be a boost to its stock market which had been in a sorry state of affairs for several years, courtesy, its explicitly carved economic slowdown to cover its shallow real estate market.
But there are a few U.S. listed Chinese stocks that have been reporting good earnings reports in the recent times. One such company that deals in services in the real estate business in China is E-House (China) Holdings Limited., (NYSE/EJ). It has representatives (agents) in 230 cities and its services include brokerage, both primary and secondary, along with inter-industry- collection of data as well as consultation therein. E- House has posted a strong turnaround in its revenues; with a growth of twenty five percent in the new properties that it sold in terms of total floor areas. With no debt and a stock price as low as $3.37 a share; in fact this is its all time low value; this is one Chinese stock to watch out for. Another U.S.-listed Chinese stock, Renren Inc. (NYSE/RENN) gained 47% in revenues in the third quarter and is also trading around its all-time-low.
Feihe International, Inc. (NYSE/ADY) is a Chinese company that is involved in producing milk powder, infant formula and other associated products. As compared to the increase in the company’s gross profit margin in third quarter of last year (36.5%), this year’s corresponding increase was 54.9%, which is quite noteworthy. As Feihe is currently focusing on higher margin business, there are talks of the company’s CEO buying the firm. In addition, the stock price is trading at a considerable discount to book value and hence it presents a lucrative long term investment option.
In a similar fashion, there are a number of Chinese stocks that are trading at/ near their 52-week and all-time lows. Thus this stock market looks to be a sector that may experience a turnaround after a short period of time and many speculative investors could well be contemplating a few such stocks for investment purposes in the next year. But there have been a few infamous Chinese stocks that have left a bad taste in the mouth of many an institutional investor as a result of which the latter’s peers have shied away from this particular sector and as such there has been diminished activity observed in the price movement. One has to therefore practice due caution with Chinese based stocks and proceed with those whose accountability has been verified.
In recent times, there have been growing talks about the Chinese economy being on the rebound. So if one has faith that the country’s gross domestic profit has chances of picking up the pace in 2013, it could be a boost to its stock market which had been in a sorry state of affairs for several years, courtesy, its explicitly carved economic slowdown to cover its shallow real estate market.
But there are a few U.S. listed Chinese stocks that have been reporting good earnings reports in the recent times. One such company that deals in services in the real estate business in China is E-House (China) Holdings Limited., (NYSE/EJ). It has representatives (agents) in 230 cities and its services include brokerage, both primary and secondary, along with inter-industry- collection of data as well as consultation therein. E- House has posted a strong turnaround in its revenues; with a growth of twenty five percent in the new properties that it sold in terms of total floor areas. With no debt and a stock price as low as $3.37 a share; in fact this is its all time low value; this is one Chinese stock to watch out for. Another U.S.-listed Chinese stock, Renren Inc. (NYSE/RENN) gained 47% in revenues in the third quarter and is also trading around its all-time-low.
Feihe International, Inc. (NYSE/ADY) is a Chinese company that is involved in producing milk powder, infant formula and other associated products. As compared to the increase in the company’s gross profit margin in third quarter of last year (36.5%), this year’s corresponding increase was 54.9%, which is quite noteworthy. As Feihe is currently focusing on higher margin business, there are talks of the company’s CEO buying the firm. In addition, the stock price is trading at a considerable discount to book value and hence it presents a lucrative long term investment option.
In a similar fashion, there are a number of Chinese stocks that are trading at/ near their 52-week and all-time lows. Thus this stock market looks to be a sector that may experience a turnaround after a short period of time and many speculative investors could well be contemplating a few such stocks for investment purposes in the next year. But there have been a few infamous Chinese stocks that have left a bad taste in the mouth of many an institutional investor as a result of which the latter’s peers have shied away from this particular sector and as such there has been diminished activity observed in the price movement. One has to therefore practice due caution with Chinese based stocks and proceed with those whose accountability has been verified.
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