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Thursday, July 28, 2011

Chinese Hunger for Meat - Zhongpin Inc.

The Chinese demand for meat has been growing rapidly as individual income have been growing.  Therefore it is worthwhile to look at company like Zhongpin Inc. (Nasdaq: HOGS), a meat and food processing and distribution company with over 390 meat products.  As the sixth largest meat producer, the company serves customers like Wal-Mart, KFC and McDonalds and even export it's meat products to Europe, Hong Kong, Japan, and South Korea.  


Both the company's revenue has been growing rapidly from $291 million in 2007, $539 million in 2008, $726 million in 2009 to $946 at the end of 2010.  However the company's stock has not been doing well this year, losing about 50% already at the moment from little over $20 per share in January to $10.15 at the moment.  Based on recent heavy volume it's a good indication that smart money recognized the value of the company and began to snatch up shares at a discount.

Thursday, July 21, 2011

Smart Play in a Turbulent Market - Qihoo 360 Technology Co

While the market has been on turbulent ride recently - going down 100 points in a day and up 100 points the next day, this Chinese internet security company has been going up steadily from $16 per share to $25 per share and did not have the same volatility as the market.  The name of the company is Qihoo 360 Technology Co (NYSE:QIHU), which provides internet and mobile security products in China.  


The company has been in rapidly growing mode from $16 million in revenue in 2008 to $32 million in 2009 and then to $56 million in 2010.  For the first quarter of 2011 the company made a historical $23 million, more than twice as much compared to same period last year.  This is a good investment to catch the rapid growing economy in China and steering away from the possible housing bubble at the same time.

Wednesday, July 6, 2011

Great Potential in Youku.com Inc (ADR)

The hard beaten Chinese stocks present great buying opportunity for the high quality ones such as the Beijing based Youku.com Inc (ADR) (NYSE:YOKU).  For those of you who never heard of the company, it is also called the Youtube of China.  However beside the user generated video content, Youku.com also partnered with 1,500 license content holder include recent partner with Time Warner(TWX).  Since going IPO last December, YOKU traded as high as $70 per share in April of this year but dropped to 52 weeks low of $26 per share in mid June on overall Chinese stock weakness.  Bargain hunters saw the opportunity and the stock is now trading at $36.73 per share.  The stock has current support $30.89 and resistance at $42.1 per share.