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. 

Chinese internet stocks have struggled over the last two years. Leading stocks such as internet search giant Baidu have seen losses, while the S&P 500 has seen a meaningful 34% gain. Outside of the major Chinese internet stocks, the losses over the last two years have been closer to 50%. Some of these stocks have seen expectations drop from the outlandish forecasts a few years back, but strong long-term more » Disclosure: No positions mentioned. Please read the disclaimer page for more details. 

This is the 3rd in a series or articles focusing on the emerging markets that have come under fire this year. The first 2 articles focused on India and Brazil, while this one will explore the opportunities in China. The main culprit for the emerging market declines has been the supposed rampant inflation. China has been no exception to this fear. Inflation, though, has decidedly peaked in China with the November figure showing month over month declines. This has allowed China to lower bank reserve ratios once already and will likely lead to further cuts especially since the government raised ratios to over 20% at the start of this year. Read the full article at Seeking Alpha. Disclosure: Long CCIH. 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...

As we've written on ChinaCache International (CCIH) in the past, this Chinese internet company has been completely ignored by the market. While Sina.com (SINA) has soared and numerous other IPOs have garnered attention, the market had forgotten about CCIH. Volume for two days in early April were below 50,000 shares. An absurdly low amount for a hot internet sector. Even the 3 month average volume being only 183K shares. For example, Youku.com averages nearly 2M daily shares and Qihoo 360 Technology (QIHU) averages 5.7M. The difference is very surprising considering the growth rate at CCIH. Today CCIH had 1.2M shares traded which is the highest volume on a up day since the IPO. It is also the 2nd highest day after the 1.5M shares traded on Feb 9th after the announcement of the COO resignation. China internet stocks were hot today, but it appears the key to share gains in CCIH is for it to regain attention as China internet IPO versus a reverse takeover (RTO). Somehow CCIH had ...