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China stocks at lunch, March 19, 2010

Friday, 19 March 2010 10:48 Blaze Fabry

March 19, 2010 (Chinavestor) Shares of City Telecom (NASDAQ:CTEL) surged +19.1% in the morning, a performance not matched by any China ADR today. China Integrated Energy (NASDAQ:CBEH) comes the closest with a +4.1% advance. Shares of Acorn International (NYSE:ATV) bounced back up +3.4% after three days of losses. China Southern Airline (NYSE:ZNH) continued to surge.

Stocks with the steepest fall today include Tongxin International (NASDAQ:TXIC). Weakness is not limited to the stock; shares of China Automotive Systems (NASDAQ:CAAS) fell -2.24% the same time. Troubles for FUQI International (NASDAQ:FUQI) continue to mount as more and more law firms investigate any wrongdoings. Shares of Origin Agritech (NASDAQ:SEED) fell just as much as that of Fushi Copperweld (NASDAQ:FSIN). China Finance Online (NASDAQ:JRJC) continued to surrender gains recorded after a strong 2009 Q4 results.

Details: The sudden jump of City Telecom (NASDAQ:CTEL) may come to surprise many but technical indicators have foretold that a rally was imminent. Oversold CTEL rocks the house.

Shares of China Integrated Energy (NASDAQ:CBEH) has taken a rocky road but a road that heads north, following better-than-expected financial disclosures. The good news is that a team from Chinavestor, including myself, will meet Mr. Albert Pu, CFO of the company this very afternoon in Westport, CT to discuss latest trends. Follow up on Chinavestor for additional coverage.

Shares of Acorn International (NYSE:ATV) advanced +3.4% as investors came to think about the fall following 2009 Q4 numbers. Our analysis reveals that current downtrend is justified and investors should think twice about investing into ATV at the moment. Five reasons to shun ATV after 2009 Q4.

China Southern Airlines (NYSE:ZNH) has been erratic at best lately as investors are trying to assess effect of the latest cash infusion, plane delivery and additional routes before the summer holiday season. Shares of China Eastern Airlines (NYSE:CEA) have been just as strong as that of smaller China Southern Airlines (NYSE:ZNH) or Air China (HKG:0753). The sector pulled the Hang Seng Index this morning, as reported China stocks continue to recover in Asia.

Shares of Tongxin International (NASDAQ:TXIC) fell the most by noon among U.S. listed China stocks. This commercial vehicle parts maker is under pressure along the rest of the industry for two reasons. For one, credit tightening combined with China's exit from the stimulus is expected to soften demand for autos. And for two, Brilliance Auto (HKG:1114) issued profit warning today, pressuring the sector.

Shares of Fuqi International (NASDAQ:FUQI) continue to deteriorate after the company issued a warning that it has to restate earnings for three previous quarters. Law firms jumped on allegations of intentional wrongdoings and as such the stock price tanked. FUQI lost -44% of its market cap in the matter of days - though the restatement of earnings itself would be much much less severe. Don't panic FUQI Investor!

Shares of Fushi Copperweld (NASDAQ:FSIN) gave up all previous gains and accelerates south as investors digest latest financial results of the company. Fushi Copper reports record profit, strong sales - but guides lower.

Shares of China Finance Online (NASDAQ:JRJC) fell -5.3% by noon today - albeit low volume. All of previous earnings related gains of +17% have evaporated by now sending shares of the company back to square one. KongZhong up 17%. Will it last? - we wrote questioning the rational behind the strong rally. Time has proven us right.

China stock market summary March 18, 2010

Thursday, 18 March 2010 15:38 Blaze Fabry

March 18, 2010 (Chinavestor) The DJIA ended up for the eight days in a row, setting a positive tone for China stock investors. Yet large cap China stocks underperformed and ended the day in the red. Small cap China stocks were mixed, measured by the Claymore/AlphaShares China Small Cap ETF (NYSE:HAO), ending the day higher.

Shares of China Biotics (NASDAQ:CHBT) advanced +13% with heavy underlying volume. City Telecom (NASDAQ:CTEL) was an oversold China play that was ready to turn around. Today's rally of +6.4% is a third straight up day in a row suggesting the company bottomed out earlier at $11 a share. Chinese airliners advanced on falling oil- as was expected after a strong showing in Asia this morning. Shares of American Dairy (NYSE:ADY) bottomed out at $20 and is not oversold anymore. More upside is on the road ahead...

Solar stocks underperformed today as price of oil subsided. Trina Solar placed 7,900,000 ADRs diluting the value for her shareholder base. AirMedia Group (NASDAQ:AMCN) fell -6.7% today making it the six day in a row. The stock isn't oversold yet, more downside is possible. Most of the gains following strong financial results evaporated for Global Sources (NASDAQ:GSOL) in two days. Shares of the company fell -4.0% making investors wonder where the stock is going to go from here. Shares of China Infrastructure Development (NASDAQ:CIIC) shed -3.9% by the end of the day. Low volume suggests more downside is possible for this small cap China stock.

China stock market summary March 17, 2010

Wednesday, 17 March 2010 15:10 Blaze Fabry

March 17, 2010 (Chinavestor) Small cap U.S. listed Chinese stocks softened up by the end of the day as earnings fell short of expectations. Fuqi International (NASDAQ:FUQI) fell -37.2% following investigations into the earnings of the company. Worse than expected earnings hurt China Sky One Media (NASDAQ:CSKI), HQ Sustainable Maritime (AMEX:HQS), and Global Sources Inc. (NASDAQ:GSOL) the most on Wednesday. Volatile Rino International (NASDAQ:RINO) took a breather and fell -6.1% for the day. Focus Media Holdings (NASDAQ:FMCN) won the title of "the biggest reversal story" of the day. After an over eight percent jump at the open shares of the company eroded steadily to end the day in the red.

Stocks with the best performance today include KongZhong Corp. (NASDAQ:KONG), a stock that advanced +20.8% on strong earnings. China Digital TV Holding (NYSE:STV) rose +5.3% followed by Suntech Power (NYSE:STP) with a +5.2% advance. Shares China of Grentech Corp. (NASDAQ:GRRF) advanced +4.15% as earnings announcement nears.

KongZhong Corp. (NASDAQ:KONG) was the best China stock of the day, measured by percent change. With a +20.8% advance in one day, investors were spinning their heads. But we're of a view that future stock price remains uncertain and today's bulls might disappear should market sentiment sour. KongZhong up 17%. Will it last?

Rally of China Digital TV Holdings (NYSE:STV) have been caught by the overbought monitor several times. We will have to run the overbought monitor this time to see if shares of the company became overbought.

Suntech Power (NYSE:STP) is propelled by strong fundamentals. The company reported one of the best quarterly report among its peers with revenue and earnings growth accelerating in 2009. Expect additional gains down the road. Complete 2009 Q4 China solar stock guide.

Shares of China GrenTech Corporation (NASDAQ:GRRF) advanced +4.2% with low volume. Given that the company is going to report four quarter earnings later in March, current strength is just a run up before actual numbers. Investor, exercise caution!

Shares of China Fire & Security Group (NASDAQ:CFSG) advanced +2.52% today bouncing back off from the big drop the day before. We're of a view that current numbers are not as horrible as it might have looked for the first sight. Risk increases for CFSG as earnings disappoint but outlook sweetens.

Another earnings related reversal took place with Focus Media Holdings (NASDAQ:FMCN) today. Shares of the company jumped 8.7% at the open just to see all of the gains evaporate by the end of the day. Shares of the company ended the day -2.21% lower... Focus Media rattles nerves with Q4 numbers.

The biggest decliner of the day by far was Fuqi International (NASDAQ:FUQI). The company announced that it will restate the last three quarter and delay the announcement o f the current quarter. Investigations have started to find any wrongdoings on top of the bad news... But a -37.2% drop if way excessive in our opinion and it just may be a unique opportunity to pick up FUQI shares in the cheap. Don't panic FUQI investor!

Disappointing earnings hurt China Sky One Media (NASDAQ:CSKI)and HQ Sustainable Maritime (AMEX:HQS). Today's weakness of Global Sources (NASDAQ:GSOL) is a technical correction following two days of strong advanced following record earnings. Global Sources 2009 Q4 rocks!

China stocks at extremes: FUQI, KONG

Wednesday, 17 March 2010 10:57 Blaze Fabry

March 17, 2010 (Chinavestor) This doesn't get any better - "Earnings, earnings, and earnings... when it comes to China stock movers." we wrote in the overbought/oversold report this morning. Earnings moved Fuqi International (NASDAQ:FUQI) big time - the stock lost -36.0% by noon today! Another stock on the move is KongZhong Corp. (NASDAQ:KONG), this time on the positive. Shares of the company are trading +19.8% higher as earnings rolled out.

Other noticeable China stocks on the move include China Digital TV Holding (NYSE:STV), Qiao Xing Mobile (NYSE:QXM) to the upside and China Automotive Systems (NASDAQ:CAAS), and China Sky One Medical (NASDAQ:CSKI) to the downside.

Let's start with the good news: shares of KongZhong Corp. (NASDAQ:KONG) advanced on better-than-expected earnings. The huge underlying volume suggests the rally is well founded and will stick.

China Digital TV Holdings (NYSE:STV) has been a highly volatile stock in the past that the overbought / oversold monitor recorded. Today's big advance is technical in nature after five days of decline.

A lesser know, small cap, low volume China play, Qiao Xing Mobile (NYSE:QXM) advanced +4.4% so far today. This rally is the third in a row but is part of a larger technical correction. Shares of the company has lost over 50% of their value since last November and the three days strength is more of a technical correction than a well founded, long term rally. Low volume today suggests the bounce back won't last for long.

Fuqi International (NASDAQ:FUQI) is screaming off the chart above as the worst stock of the day among U.S. and Asian listed Chinese stocks. The -36.0% drop following earnings announcement is a stark reminder that small cap Chinese stocks are risky investments.

Shares of China Sky One Medical (NASDAQ:CSKI) lost -9.0% by noon as earnings disappointed. A significant increase in volume suggests the stock will not recover anytime soon...

Shares of Chinese car part makers tumbled today. China Automotive Systems (NASDAQ:CAAS) and Tongxin International (NASDAQ:TXIC) are among the five worst performers today, highlighting the weakness of the sector.

China stock market summary March 16, 2010

Tuesday, 16 March 2010 15:20 Blaze Fabry

March 16, 2010 (Chinavestor) Looking at U.S .slited Chinese stocks for the day, Melco Crown Entertainment (NASDAQ:MPEL) resumed the surge after a four day losing streak from last week. Oversold American Dairy (NYSE:ADY) advanced 7.37% followed by volatile Yucheng Technologies (NASDAQ:YTEC) and Noah Education (NYSE:NED). Chinese ADRs on in the red included HQ Sustainable Maritime (AMEX:HQS), a stock that fell -10.5% after disappointing quarterly results. Ata Inc. (NASDAQ:ATAI) and China Fire & Security Group (NASDAQ:CFSG) fell on weak earnings as well. General Steel (NYSE:GSI) and ChinaTech Faith Wireless (NASDAQ:CNTF) experienced a sell-off as earnings came out below expectations.

Large cap Chinese ETF were much less volatile, as expected. Sinopec Corp. (NYSE:SNP) and China Life Insurance (NYSE:LFC) were among the best performing U.S. listed stocks out of the 25 components of the China Xinhua 25 Index.

Looking at components of the index underlying the Claymore/AlphaShares China Small Cap ETF (NYSE:HAO), U.S. listed WuXi Pharmatech (NYSE:WX) advanced +4.3% on Tuesday. The overbought/oversold monitor captured the weak technical condition of the stock this morning, saying "WuXi Pharmatech (NYSE:WX) became oversold and are ready to bounce back up." This proved to be an accurate prediction, just as was the case with similar American Dairy (NYSE:ADY). Shares of Sohu.com (NASDAQ:SOHU) fell -3.1% today, making it he worst performing U.S. listed component of the HAO.

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