Two Chinese Stocks with Big Events This Week

This week, there will be a lot of earnings announcements from U.S.-listed Chinese stocks. As I’ve been writing, there’s been a lot of carnage within this group on the stock market, but liquidity is still strong with many of these positions, and they are worth a trader’s eye.
One Chinese stock that reports its third-quarter financial results this week is E-Commerce China Dangdang Inc. (NYSE/DANG). This online company, which sells books, media, and other lifestyle products, has grown its revenues significantly over the last few years. The problem for the company has been its ability to generate meaningful earnings. Any improvement in the company’s bottom line should produce a major move on the stock market. Dangdang’s stock chart is featured below:

Another highly liquid Chinese stock that reports this week is Renren Inc. (NYSE/RENN). This is a powerful moving position on the stock market; it’s proven to be highly volatile, and I think is attractive for traders. The stock blasted higher at the beginning of this year, more than doubling to over $7.00 a share from $3.40. The position broke down in May, and has been drifting lower ever since. The stock might move with its earnings news. The company’s chart appears below:

U.S.-listed Chinese stocks are not for the faint of heart; the vast majority are way down from their highs on the stock market. Two principal issues have affected Chinese stocks over the last couple of years: a loss of confidence among domestic investors; and significant weakness in domestic Chinese equities.
But, I do like to bottom-fish on the stock market, especially companies that are turning around, but whose share prices are at their lows. There isn’t much in the way of upward price momentum in the broader market now, so trading action is tempered. But, with all the carnage among U.S.-listed Chinese shares, I wouldn’t be surprised to see some turnarounds on the stock market going forward into 2013.

Source: http://www.pennystockdetectives.com/