The Chinese GDP growth story is by no means news at this point. For 2013 to 2015, growth estimates remain high at a CAGR of 8.77%. But the former isolationist nation has, without doubt, already experienced its fastest growth for this cycle. This is troubling in light of the fact that Chinese credit expansion is running sky-high. Some say China's pending credit crisis resembles the U.S. circa 2007, but it may actually trump the U.S. credit bubble by a shocking magnitude. Investors around the world need to be aware of the current situation, as it has the capacity to affect the global economy (and your investments).
Credit-happy
The U.S. is no stranger to credit. At the height of our country's own credit binge, the total credit provided by the banking sector was 244.4% of GDP. At its current rate of growth, China's credit-to-GDP ratio could easily hit 240% to 250% -- and continue ballooning from there. The World Bank has the ratio at 155.1% at year-end 2012, but with the five-year trailing CAGR of bank assets as measured by the China Banking Regulatory Commission at more than 30% (and climbing), its clear this is a runaway train. By the way, that's three times the rate of U.S. credit growth at our hungriest levels (2006 to 2007).
Top China Companies To Invest In 2014: CNOOC Limited(CEO)
CNOOC Limited, through its subsidiaries, engages in the exploration, development, production, and sale of crude oil, natural gas, and other petroleum products. The company?s oil and natural gas properties are located in offshore China, which include Bohai Bay, western south China Sea, eastern south China Sea, and east China Sea, as well as in Indonesia, Iraq, and other regions in Asia; and Oceania, Africa, North America, and South America. As of December 31, 2010, the company had net proved reserves of approximately 2.99 billion barrels-of-oil equivalent, including approximately 1.92 billion barrels of crude oil and 6,458.3 billion cubic feet of natural gas. It also provides bond issuance services; and has a joint venture with Bridas Energy Holdings. CNOOC Limited was founded in 1982. The company is headquartered in Central, Hong Kong, and is considered a Red Chip company due to its listing on the Hong Kong Stock Exchange. CNOOC Limited is a subsidiary of China National Of fshore Oil Corporation.
Advisors' Opinion:- [By Dave Friedman]
Institutional investors bought 1,474,410 shares and sold 1,532,340 shares, for a net of -57,930 shares. This net represents 0.00% of common shares outstanding. The number of shares outstanding is 44,669,199,980. The shares recently traded at $187.66 and the company’s market capitalization is $82,478,290,357.81. About the company: CNOOC Limited, through its subsidiaries, explores, develops, produces, and sells crude oil and natural gas.
Top China Companies To Invest In 2014: China Kanghui Holdings(KH)
China Kanghui Holdings develops, manufactures, and markets orthopedic implants and associated instruments. It offers approximately 30 product series of orthopedic implants and associated instruments for trauma, spine, cranial maxillofacial, and craniocerebral indications. The company?s trauma products include a range of nails, plates and screws, and cranial maxillofacial plate and screw systems used in the surgical treatment of bone fractures. Its spine products comprise screws, meshes, interbody cages, and fixation systems used in the surgical treatment of spine disorders. China Kanghui Holdings also manufactures products, including implants, implant components, and instruments for original equipment manufacturers. The company markets its products under Kanghui and Libeier brand names through third-party distributors to hospitals and surgeons. It sells its products in Asia, Europe, South America, and Africa. The company was founded in 1996 and is headquartered in Changzho u, the People?s Republic of China.
Advisors' Opinion:- [By Sherry Jim]
China Kanghui Holdings is a developer, manufacturer and marketer of orthopedic implants in China. China Kanghui Holdings has a market cap of $532.47 million; its shares were traded at around $23.35 with a P/E ratio of 56.95 and P/S ratio of 14.48.
Soros bought 592,000 shares of China Kanghui Holdings at $18.52 and did not purchase more in the first quarter 2011.The stock has increased 28% year to date.
First quarter 2011 net income increased by 23.6% to RMB22.0 from RMB17.8 million in the first quarter 2010. Net income per diluted ADS was RMB0.87 in the first quarter 2011, increased from a net loss per diluted share of RMB0.77 in the first quarter 2010. Domestic sales for its proprietary products increased 21.0% year over year to RMB50.1 million from RMB41.4 million, and international sales of proprietary products increased 246% from RMB11.1 million from RMB3.2 million. The company has cash and cash equivalents of $27.1 million on its balance sheet as of March 31, 2011.
China Kanghui expects year-over-year revenue growth of 20 to 25% in 2011, making revenue for the year 2011 between RMB292 and RMB303.
Hot China Stocks To Buy Right Now: KongZhong Corporation(KONG)
KongZhong Corporation, together with its subsidiaries, provides wireless interactive entertainment, media, and community services to mobile phone users in the People's Republic of China. It also involves in the development, distribution, and marketing of consumer wireless value-added services, including wireless application protocol, multimedia messaging services, short messaging services, interactive voice response services, and color ring back tones. In addition, it offers interactive entertainment services, such as mobile games, pictures, karaoke, electronic books, mobile phone personalization features, entertainment news, chat, and message boards; and through Kong.net offer news, community services, games, and other interactive media and entertainment services; and sells advertising space in the form of text-link, banner, and button advertisements. Further, the company develops and publishes mobile games, including downloadable mobile games and online mobile games cons isting of action, role-playing, and leisure games. As of December 31, 2009, it had a library of approximately 300 internally developed mobile games. Additionally, it develops online games; and provides consulting and technology services, as well as media and net book services. The company was formerly known as Communication Over The Air Inc. and changed its name to KongZhong Corporation in March 2004. KongZhong Corporation was founded in 2002 and is headquartered in Beijing, the People?s Republic of China
Advisors' Opinion:- [By Wyatt Research Staff]
As a Chinese ADR, KONG is the leading provider of 2.5G wireless interactive entertainment, media and community services in terms of revenue to customers of company China Mobile. Institutions snatched up shares at an alarming rate with an increase of 26.7% in institutional ownership over the past three months.
A consensus of analysts expect earnings to increase by 16.9% in 2011 and 19.6% in 2012. Company earnings are estimated to increase by 62.1% this year.
Top China Companies To Invest In 2014: Vanceinfo Technologies Inc(VIT)
VanceInfo Technologies Inc., together with its subsidiaries, engages in the provision of information technology (IT) services. The company offers research and development services in various phases of development, including requirements analysis, concept generation, product realization, quality assurance and testing, and technology and information transfer; and develops software products, such as middlewares, Internet protocols, and other software. It provides enterprise solutions for packaged evaluation and selection, packaged implementation, customization, regional rollout, version upgrades, and business intelligence/data warehouse, as well as enhancement, maintenance, and product support; and designs, develops, and implements software solutions to meet various client requirements, and provides maintenance services for software systems. VanceInfo also offers customized and automated testing practices, which include functional testing, globalization and localization testi ng, automation testing, performance testing, remote testing, and test process consulting; and globalization and localization services that comprise software and content localization, localization engineering, localization testing, internationalization engineering, and internationalization testing. The company serves technology, telecommunications, financial services, manufacturing, and retail and distribution industries primarily in China, the United States, Europe, and Japan. VanceInfo Technologies Inc. was founded in 1995 and is headquartered in Beijing, the People?s Republic of China.
Top China Companies To Invest In 2014: Focus Media Holding Limited(FMCN)
Focus Media Holding Limited, a multi- platform digital media company, operates out-of-home advertising network using audiovisual digital displays in China. It operates out-of-home advertising network based on the number of locations and flat-panel television displays in its network. The company, through its multi-platform digital advertising network, reaches urban consumers at locations and point-of-interests over various media formats, including audiovisual television displays in buildings and stores, advertising poster frames, outdoor light-emitting diode digital billboards, and Internet advertising platforms. As of June 30, 2010, its digital out-of-home advertising network had approximately 142,000 LCD displays in its LCD display network and approximately 275,000 advertising in-elevator poster and digital frames, installed in approximately 90 cities. The company also provides Internet marketing solutions; and sells software licenses and services, primarily including Adf orward software. Focus Media Holding Limited was founded in 1997 and is based in Shanghai, the People?s Republic of China.
Advisors' Opinion:- [By Hesler]
Focus Media operates the largest out-of-home advertising network in China using audiovisual flat-panel displays based on the number of locations and number of displays in its network. Focus Media Holding Ltd. has a market cap of $4.55 billion; its shares were traded at around $31.4 with a P/E ratio of 31.4 and P/S ratio of 8.82.
George Soros sold out of his position of almost 2 million shares in Focus Media Holding in the fourth quarter of 2009 when the stock had reached $14, after falling as low as $7.45 in the second quarter of 2009. He purchased 400,000 shares in the first quarter 2011 at an average price of $26.22 per share. Year to date the stock price has risen 42.5%.
Most of Focus Media’s revenue growth in the first quarter was driven by advertising and its LCD displays. Focus Media’s advertising net revenue for its LCD display network increased 63%, advertising net revenue from its poster frame network increased 46%, and advertising net revenue from the in-store network increased 23%, from the first quarter 2010. Its net revenue from its LCD display (including a movie theater network), in-store and poster frame businesses increased 54%.
The company’s net income for the first quarter of 2011 was $20.5 million, increased from a net loss of $1.0 million in the first quarter of 2010.
In the first quarter, the company has also spent $240 million repurchasing shares, out of a $300 million share repurchase program, and has plans to buy a 15% stake in Enjoy China Technology Development Company Limited.
Top China Companies To Invest In 2014: Clean Diesel Technologies Inc.(CDTI)
Clean Diesel Technologies, Inc. engages in the manufacture and distribution of emissions control systems and products for heavy duty diesel and light duty vehicle markets. The company operates in two divisions, Heavy Duty Diesel Systems and Catalyst. The Heavy Duty Diesel Systems division designs and manufactures verified exhaust emissions control solutions that are used to reduce exhaust emissions created by on-road, off-road, and stationary diesel and alternative fuel engines, including propane and natural gas. Its products include closed crankcase ventilation systems, diesel oxidation catalysts, diesel particulate filters, Platinum Plus fuel-borne catalysts, ARIS selective catalytic reduction reagents, catalyzed wire mesh diesel particulate filters, alternative fuel products, and exhaust accessories. This division offers its products for original equipment manufacturers of heavy duty diesel equipment, such as mining equipment, vehicles, generator sets, and construction equipment, as well as retrofit customers consisting of school districts, municipalities, and other fleet operators. The Catalyst division produces catalyst formulations using its proprietary MPC technology for gasoline, diesel, and natural gas induced emissions. Its products comprise catalysts for gasoline engines, diesel engines, and energy applications. This division supplies its catalysts to automotive manufacturers and large heavy duty diesel engine manufacturers. The company sells its products through a network of distributors and dealers, and its direct sales force worldwide. Clean Diesel Technologies, Inc. is based in Ventura, California.
Advisors' Opinion:- [By CRWE]
Clean Diesel Technologies, Inc. (Nasdaq:CDTI), a cleantech emissions control company, will be a presenter at the 3rd Annual Craig-Hallum Capital Group Alpha Select Conference. The presentation is scheduled for 2:10 p.m. ET on Thursday, September 27, 2012 at the Sentry Centers in New York.
- [By cnAnalyst]
Clean Diesel Technologies, Inc. (NASDAQ:CDTI) is the 3rd best-performing stock last month in this segment of the market. It was up 90.97% for the past month. Its price percentage change was -13.07% year-to-date.
Top China Companies To Invest In 2014: Perfect World Co. Ltd.(PWRD)
Perfect World Co., Ltd., through its subsidiaries, engages in the research, development, operation, and licensing of online games primarily in the People?s Republic of China, the United States, and the Rest of Asia. It develops online games based on its game engines and game development platforms. The company?s 3D massively multiplayer online role playing games (MMORPGs) include Perfect World, an adventure and fantasy game with traditional Chinese settings; Legend of Martial Arts, an adventure story of Chinese swordsmen set in an ancient kingdom; and Perfect World II, which is set in a similar content and graphic background as Perfect World. It also offers Zhu Xian that is based on martial arts focused adventure set in a fantasy world; Chi Bi, a war story developed based on ancient Chinese history known as the Three Kingdoms; Hot Dance Party, a 3D online casual game; Pocketpet Journey West, a 3D MMORPG based on the classical novel of Chinese literature, Journey to the West ; Battle of the Immortals, a mysterious adventure, which enables game players to travel between eastern and western cultures, and adventures in historic sites and turf wars; and Fantasy Zhu Xian, a 2D turn-based MMORPG based on the Internet fantasy novel Zhu Xian. It also involves in the production and distribution of films, as well as television advertising activities. The company was founded in 2004 and is based in Beijing, the People?s Republic of China.
Advisors' Opinion:- [By CRWE]
Perfect World Co., Ltd. (NASDAQ:PWRD), a leading online game developer and operator based in China, will release unaudited financial results for the second quarter ended June 30, 2012, after the market closes on Monday, August 27, 2012.
Top China Companies To Invest In 2014: China Green Agriculture Inc.(CGA)
China Green Agriculture, Inc., through its subsidiaries, engages in the research, development, production, and sale of various types of fertilizers and agricultural products in the People?s Republic of China. Its fertilizer products include humic acid-based compound fertilizers, compound fertilizers, blended fertilizers, organic compound fertilizers, slow-release fertilizers, water-soluble fertilizers, and mixed organic-inorganic compound fertilizers. The company markets its fertilizer products to private wholesalers and retailers of agricultural farm products in 22 provinces, 4 autonomous regions, and 3 central government-controlled municipalities. It also engages in the development, production, and distribution of agricultural products, such as fruits, vegetables, flowers, and colored seedlings. The company sells its decorative flowers to flower shops, luxury hotels, and government agencies; fruits and vegetables to supermarkets and upscale restaurants; and seedlings to city planning departments in Shaanxi and its neighboring provinces. China Green Agriculture, Inc. is based in Xian, the People?s Republic of China.
Advisors' Opinion:- [By Louis Navellier]
You might say that China Green Agriculture (CGA) is the salt of the earth when it comes to China stocks. Well, maybe not salt in the literal sense, just more in the metaphoric sense.
Literally, China Green Agriculture is a maker of fertilizer. The company’s humic acid organic liquid compound fertilizers help enrich the soil needed to grow the food that sustains China’s ginormous population. The company produces approximately 119 fertilizer products, and it markets those products to private wholesalers and retailers of agricultural farm products.
And talk about strong price momentum — CGA shares are up 360% over the past 12 months!
I rate CGA an A, making it a strong buy.
No comments:
Post a Comment