Out Fox The $treet

E-Commerce China Dangdang Inc. (NYSE: DANG ) might be a stock with a funny name to U.S. investors, but the company has been extremely hot recently. The provider of a business-to-consumer e-commerce platform in China has surged around 100% since opening at the beginning of May at around $3.80. In general, Chinese internet stocks have struggled over the last year or so. The sector was hot during 2010 when more » Disclosure: No positions listed. Please review the disclaimer page for more details. 

At the end of 2010, China internet stocks saw a surge in interest leading to some rather magnificent IPO pops. The next Facebook, Amazon (AMZN), Akamai (AKAM), and many other leading tech companies were launched onto the US markets at sometimes very expensive prices. Investors were eager to obtain the next big thing from the fast growing China economy. Back in April I wrote about how investors should beware of the meteoric rise in the below four IPO stocks. [See China IPOs Gallop Out of the Gate: Time to Buy?] Unfortunately as months have passed, the picture isn't so bright for the sector these days. The problem relates to the distrust in China stocks in general due to numerous fraud allegations that hit the reverse merger sector. Then some previously thought to be legitimate China stocks like Longtop Financial and Sino-Forest were accused of frauds causing even the IPO stocks to come under question. Combine that with high valuations and the stocks have plunged since the post IPO p...

On Thursday, two more stocks IPO'ed at significant gains. Unfortunately small investors were left out of the process until the stocks opened significantly higher. By that time though, these investments aren't attractive anymore and if anything the small investor comes rushing in and loses money. Nothing new in the investment world that continues to be rigged against the average small investor. Both Zipcar ( ZIP ) and Arcos Dorados ( ARCO ) rose over 25% on the first day of trading.... Read the full article at Seeking Alpha .  Disclosure: Long CCIH. Please review the disclaimer page.  

Over the last 6 months, China has had four internet related IPOs that soared nearly 100% on the first trading day. The latest came last week in the form of Qihoo 360 Technology ( QIHU ). The stock was up an amazing 134% in its market debut, but only ranks second trailing the 161% gain of Yoku.com ( YOKU ). Should you buy now? Any prudent investor should take a pause after such a meteoric rise. Sure the company has a lot of potential but most companies don't live up too such grand hype. After all, there was a reason that the investment bankers priced it so much below the closing price. Do you really think they turned down extra fees intentionally? Read the full article at Seeking Alpha .  Disclosure: Long CCIH in client and personal accounts. Please review the disclaimer page. 

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...