Large-cap,
blue chip stocks are going down in value on the stock market, and it’s
unclear how long the current downtrend will last. The stock market is
due for a technical rebound, but every time there is some positive news
(like earnings) for the stock market to trade off, some other event hits
investor sentiment (like recent events in the Middle East). This is a
tough stock market to make money in, that’s for sure.
There’s been a lot of chatter lately about a rebound in the Chinese economy, and if you believe China will accelerate its GDP growth next year, there’s a lot of ways to bet on it. Of course, the Chinese stock market has been in the doldrums for years. The country specifically engineered a slowing of its economy in order to contain a frothy real estate market. With all the carnage among U.S.-listed Chinese stocks, the pickings are plentiful.
One U.S.-listed Chinese stock that recently reported a strong turnaround in its revenues was E-House (China) Holdings Limited. (NYSE/EJ). Speculators in Chinese stocks will likely already be familiar with this business.
The company is a major real estate services business in China, with agents in some 230 cities. E-House provides all kinds of real estate services, including primary and secondary brokerage, as well as data collection and consulting within the industry. The company’s third-quarter revenues grew 25% to $136.6 million on the back of a 35% gain in total floor area of new properties sold. The company’s stock price recently hit an all-time low of $3.37 a share; it has no debt and almost half its share price in cash. E-House’s stock chart is featured below:
But, it goes without saying, you have to be extremely careful speculating in Chinese stocks, because for the most part, institutional investors have left the sector, and this means a lack of price action. Renren Inc. (NYSE/RENN) is a U.S.-listed Chinese stock that just reported a third-quarter revenue gain of 47% to $50.4 million. The stock is still trading right around its all-time low.
With so many Chinese stocks hitting new lows on the U.S. stock market, I think risk-capital speculators should be putting a number of these companies on their radar screens. The sector doesn’t seem quite ready to turn just yet, but next year is a real possibility.
There’s been a lot of chatter lately about a rebound in the Chinese economy, and if you believe China will accelerate its GDP growth next year, there’s a lot of ways to bet on it. Of course, the Chinese stock market has been in the doldrums for years. The country specifically engineered a slowing of its economy in order to contain a frothy real estate market. With all the carnage among U.S.-listed Chinese stocks, the pickings are plentiful.
One U.S.-listed Chinese stock that recently reported a strong turnaround in its revenues was E-House (China) Holdings Limited. (NYSE/EJ). Speculators in Chinese stocks will likely already be familiar with this business.
The company is a major real estate services business in China, with agents in some 230 cities. E-House provides all kinds of real estate services, including primary and secondary brokerage, as well as data collection and consulting within the industry. The company’s third-quarter revenues grew 25% to $136.6 million on the back of a 35% gain in total floor area of new properties sold. The company’s stock price recently hit an all-time low of $3.37 a share; it has no debt and almost half its share price in cash. E-House’s stock chart is featured below:
Chart courtesy of www.StockCharts.com
To
describe the trading action among a large number of U.S.-listed Chinese
stocks as carnage is an understatement. All kinds of Chinese stocks are
trading at or near their 52-week and all-time lows. It’s a stock market
sector that in my view is ripe for a turnaround.But, it goes without saying, you have to be extremely careful speculating in Chinese stocks, because for the most part, institutional investors have left the sector, and this means a lack of price action. Renren Inc. (NYSE/RENN) is a U.S.-listed Chinese stock that just reported a third-quarter revenue gain of 47% to $50.4 million. The stock is still trading right around its all-time low.
With so many Chinese stocks hitting new lows on the U.S. stock market, I think risk-capital speculators should be putting a number of these companies on their radar screens. The sector doesn’t seem quite ready to turn just yet, but next year is a real possibility.
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