Out Fox The $treet

One of the more puzzling aspects of the China Internet stock boom has been the general lack of interest in ChinaCache International ( CCIH ) . Well until the stock recently got a major boost from limited publicity. Anybody following the original China Internet boom back in 2010 might recall that ChinaCache had a hugely successful IPO that soared 100%. The 'Akamai of China' quickly collapsed on the fears of fraud that hit every Chinese stock for the next couple of years. The stock has now doubled in the last month; yet it still trades at industry low multiples by an extreme margin. Read the full article at Seeking Alpha. Disclosure: Long CCIH. Please review the disclaimer page for more details. 

After one of the biggest IPO gains back in 2010 and comparisons to Akamai Technologies ( NASDAQ: AKAM     ) , ChinaCache ( NASDAQ: CCIH     ) has mostly toiled in obscurity the last three years. While the content and application delivery network provider has struggled with sustainable profits, the company continues to generate fast growth having recently regained a 30% growth level again. With China tech stocks from Qihoo 360 Technology ( NYSE: QIHU     ) to Badiu surging this year as 3G mobile services increase the Internet reach in China, ChinaCache has gotten some market interest, but the stock still trades far below normal multiples for a fast-growing tech stock. Read the article here . Disclosure: Long CCIH and BIDU. Please review the disclaimer page for more details. 

While the US tech sector its a rough patch, some Chinese tech stocks like China Cache (CCIH) are looking very bullish technically. Networking stocks like F5 Networks (FFIV) and Riverbed Tech (RVBD) along with just about all of the optical equipment stocks and even the US CDN leader Akamai (AKAM) have fallen below the 200ema. Typically this is a very bearish sign especially if the 20/50emas dip below the 200 as well. CCIH on the other hand has regained the 20/50ema. The 200ema isn't active yet since the company hasn't been public that long. CCIH is the leading CDN provider in China, but has dropped dramatically from its post IPO high near $35 all the way back in November. Along with the general weakness in the Chinese market that started back then, they also faced the scare that the COO leaving signaled internal issues at the company. Based on the Q4 results those issues were put to rest and the stock has been basing since then. From looking at the chart below it appears t...

Emerging markets stocks have been a major theme of the Opportunistic portfolios at Stone Fox Capital so I'm actually pleased to see investors fleeing emerging market stocks. Weak emerging market performance has reduced portfolio performance over the last 2-3 months, but it also provides opportunity for picking up long term growth stocks on the cheap. According to this AP report , EPFR Global reported that investors pulled $5.45B out of emerging market funds during just the second week of February alone. Yes, thats correct. It only took a few scary moments in the Middle East and some high inflation for investors to jump ship. Emerging markets have long been a traders market as investors jump in and out depending on the market direction. Oddly though, these markets provide a lot more long term growth and hence investors should be buying the dips in a lot of these markets. That doesn't appear to be the case though as I wrote yesterday about how the Chinese market has perked up...

Don't look now, but the China markets have been heating up the last 40 days. After a significant selloff following the highs back you November, the market had completely left China for the dead. That was clearly the wrong move. Lately it appears that China has been able to slow down its economy with PMI reporting the lowest total in the last 6 months over night. The Shanghai Composite is on the verge of  a significant breakout if 2,950 can be broken soon. A run back at the 3,150 high made back in November is the likely target. So while financial professionals are overly focused on the US markets and the Middle East, the lack of focus on the economy that leads the world these days has taken off. In that regard, our investments in China commodity plays like Puda Coal (PUDA) and Lihua International (LIWA) should perform well. Also, the recent purchase of ChinaCache (CCIH) appears ultimately timely a few weeks back. At the time CCIH was trading in very oversold levels, since the ...

ChinaCache International Holdings (CCIH) was one of the top IPOs of 2010. The company priced above the initial range at $13.9 and eventually ended up over 90% on the opening day closing at $27.15 and hitting as high as $30.70. The stock eventually peaked out at $35 over a month later on Nov 12th. So what makes the stock so appealing now? Well, after that massive IPO jump and follow through, the stock has plunged roughly 50%. Investors are fleeing this once high flyer just 3 months after its peak. The combination of a weak China equities market in January and the resignation of the COO on February 10th has been too much for investors to risk. Ironically though the Shanghai Index has had a good February and shows good technical signs this week. Seems like the better question is why have investors fled CCIH with it now trading at its 52 week lows other then the COO resignation crash lows and below to the IPO open price?...... See the full article at Seeking Alpha . Disclosure: Lo...

ChinaCache Internaitonal (CCIH) hasn't gotten alot of attention on the IPO circuit due to its history of losses. Ironically though this mostly ignored IPO priced above the expected $10-12 range Thursday night at $13.90 showing significant demand. Not to mention they upped the shares by roughly 10% as well. On Friday the stock soared some 100% on the opening and now trades at $28 around noon time after reaching a high of $30.70. Whats unsettling about the IPO system is the lack of access to these IPOs by the small investors. CCIH sellers should not have been stuck with only receiving $13.9 with so much demand. Not to mention that modern technology fully would allow the market to give all investors access to IPOs. It's just not a level playing field for a big hedge fund or mutual fund to have made a 100% on the opening just because they are large. Guarantee plenty of investors including Stone Fox would've paid up to $15, 16, 17 or more to get this IPO at the opening. Its ti...