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Showing posts with the label China stocks

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iQIYI: A Mostly Overlooked Chinese IPO

iQIYI expects to go public next week. The Chinese online video leader seems overlooked by the market in comparison to other high-profile IPOs. The proposed offering price is attractive and the focus on Chinese tariffs could hold back the IPO excitement. As the market focuses on streaming video and music services in the U.S., a fast-growing opportunity is opening up in China. The potentially under the radar IPO of  iQIYI  ( IQ ), majority-owned by Chinese search giant  Baidu  ( BIDU ), provides an opportunity as the market focuses on more high profile public offerings and Chinese stocks face tariff related weaknesses. Read the full article at Seeking Alpha.  Disclosure: Long BIDU. Please review this disclaimer page for more details. 

Spreadtrum Communications Survives Short Attack: Turning Point for the Sector

Spreadtrum Communications ( SPRD ) became the next in a long line of Chinese stocks to be accused of improper accounting. The stock initially plunged $4, or 34%, but then the market got a surprise as the stock rallied back to breakeven. A couple of weeks back, our  article on Chinese frauds  suggested that when the clouds finally lifted on all these fraud allegations, the surviving companies would soar. SPRD might be the signal that the constant allegations are finally being overdone. Clearly the market doesn't believe this one as it lacks the merit of the previous cases against Longtop Financial ( LFT ) or Sino-Forest ( SNOFF.PK ). Read the full article at Seeking Alpha.com. Disclosure: No positions in stocks mentioned. Information is provided for informative purposes only. Please review the disclaimer page. 

Puda Coal Cools Off But It'll Heat Up Again

China is the largest user of coal and now they've become a major net importer in the last few years. Although China has embarked on several programs to focus on renewable energy sources such as solar and wind they will rely on coal fired electricity for a long time with some sources estimating that China will nearly double coal use by 2030. The coal industry in China is very fragmented. Many of the coal mines have been operated by small companies leading to very inefficient mines and a high injury rate with several tragic mine accidents. Hence, the government has embarked on a mine consolidation plan in order to move the majority of the mines into the hands of larger operators that will be more efficient and easier to regulate. The program will reduce the number of mine operators from 1,000 to 100 while also significantly shrinking the total number of mines. Mine Consolidator Puda Coal (PUDA) is one of the selected mine consolidators. It's virtually unknown by investors as they...