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China stock market summary, Friday 1:00 P.M.

Friday, 12 March 2010 12:35 Blaze Fabry

March 12, 2010 (Chinavestor) Shares of Chinese companies are trading relatively balanced with a negative bias today. Shares of Baidu.com (NASDAQ:BIDU) continued to rise by 1:00 P.M. getting comfortable above $550 a share. Online game heavy weights outperform with industry leader NetEase.com Inc. (NASDAQ:NTES) is taking the lead.

But Chinese oil companies suffer as price of the crude retreated from $82.5 a barrel to under $81.00 since Thursday. Shares of CNOOC Ltd. (NYSE:CEO), China's off-shored oil specialist and and Petrochina (NYSE:PTR), the largest Chinese oil producer, took a hit on Friday. Weak earnings continue to hurt WuXi Pharmatech (NYSE:WX). Shares of UTStarcom (NASDAQ:UTSI) are trading sideways but selling pressure is building as a result of weak earnings yesterday.

The good news is that shares of Baidu.com (NASDAQ:BIDU) are not overbought despite a long stretched rally. The stock is trading at all time highs making investors wonder how long the rally is going to last. We predicted that BIDU will break through the $550 mark but will have to take a break before resuming the climb. Baidu makes it to $550.

Trina Solar (NASDAQ:TSL) is gaining momentum as investors get increased visibility into the sector. With all but one Chinese solar makers reported 2009 Q4 and full year financials, investors have high level of confidence picking the best performing ones. Based on our analysis JA Solar (NASDAQ:JASO), Canadian Solar (NASDAQ:CSIQ) and Suntech Power (NYSE:STP) are the best besides Trina Solar (NYSE:TSL). Complete 2009 Q4 China solar stock guide.

Online game developers and operators are looking good as well. Shares of NetEase.com Inc. (NASDAQ:NTES) and Shanda Interactive (NASDAQ:SNDA) continue to shine as investors regain confidence into the sector. NetEase.com Q4 profit increase. More than facts.

Lower oil price took a toll on Chinese oil producers, CNOOC Ltd. (NYSE:CEO) and Petrochina (NYSE:PTR). Nevertheless these companies have been outperforming the broad market in the last 5 years as China's quest for oil increases. CNOOC Ltd. (NASDAQ:CEO) reported low double digit oil production growth in 2009 Q3, something that popped the eye of many investors. Petrochina (NYSE:PTR) is controlling ageing fields in China and is looking for acquisitions abroad to increase production.

Shares of WuXi Pharmatech (NYSE:WX) fell -4.00% by 1:00P.M. and are down five days in a row following worse than expected earnings. While we pointed out this morning in the overbought/oversold report that further weakness is highly likely, shares of the company are getting oversold, suggesting a technical bounce back up is possible on Monday.

Weak earnings hurt Acorn International (NYSE:ATV), sending her shares down over -16.8%. The company reported much below expectations prompting the resignation of the CFO. Related story: Five reasons to shun ATV after '09 Q4.

UTStarcom (NASDAQ:UTSI) released earnings after the close on Thursday and the stock has been trading sideways since. But we're of a view that shares of UTStarcom are up for trouble. UTStarcom 2009 Q4 - not investment grade.

Knowledge base

China stocks show signs of vulnerability

Thursday, 11 March 2010 14:34 Blaze Fabry

March 11, 2010 (Chinavestor) Looking at the ten best and ten worst performing China stocks on Thursday at 2:00 P.M., it is obvious that a relatively mild day like today had a profound impact on Chinese equities. Overbought China Finance Online (NASDAQ:JRJC) gave back -5.78 % but WuXi Pharmatech (NYSE:WX) or Home Inns & Home Management (NASDAQ:HMIN) didn't perform much better either. Shares of Baidu.com (NASDAQ:BIDU) fell most dramatically measured by dollar change but in percentage points China's largest search engine company fared better. Oversold Shanda Interactive (NASDAQ:SNDA) has been recovering helping smaller players like Giant Interactive (NYSE:GA) along the way. Selected solar companies do well despite all odds such as Suntech Power (NYSE:STP) and Trina Solar (NYSE:TSL).

Shares of China Mobile (NYSE:CHL) advanced $.69 after a similar rally in Hong Kong earlier today. Most of the excitement is a result of an acquisition announced yesterday. The largest cellular company in the world, measured by number of subscribers, bought a 20% stake in Shanghai Pudong Development Bank (SHA:600000) for $5.6 billion.

Quality Chinese solar companies like Trina Solar (NYSE:TSL) or Suntech Power (NYSE:STP) advanced as earnings season wind down for solar makers. China Sunergy (NASDAQ:CSUN) reported quarterly and full year financials before the open on Thursday - and failed to impress investors. China Sunergy back to a loss, tails sector.

But industry leader Suntech Power (NYSE:STP) reported strong quarterly revenue and earnings growth for the fourth time in a row, suggesting the industry is out of the woods. Related coverage: Better belie it: solar stocks recover.

Online game developer and operator Shanda Interactive (NASDAQ:SNDA) has shown signs of strength as investors digest latest financial report. We're of a view that Shanda remains an attractive stock. Shanda, Perfect World reports Q4. Changes in Chinese online game landscape.

When industry leaders do well, smaller players follow. This is the case with Giant Interactive (NYSE:GA), a smaller online game play.

Shares of Baidu.com (NASDAQ:BIDU) weight down the chart above but the stock is doing relatively well in percentage points. Shares of the company advanced six days in a row yesterday and a break today is more than healthy. Baidu.com (NASDAQ:BIDU) is going to give a try to run for the $550 closing pice one of these days...

Shares of Home Inns & Hotel Management (NASDAQ:HMIN) have been up and down since the earnings announcement. It looks as if the Street hasn't made up his mind yet. At Chinavestor we're of a view that HMIN looks attractive, based on latest quarterly report. Don't be goofed by Q4 results. HMIN remains undervalued.

We pointed out in the overbought monitor this morning that shares of China Finance Online (NASDAQ:JRJC) are overbought. "Another stock that's screaming off the overbought chart is China Finance Online (NASDAQ:JRJC). With an +18% advance in the past few days, earnings better be good on March 16 else many investors will lose their shirts."

Knowledge base

Movers and shakers: China stock lunch break March 10, 2010

Wednesday, 10 March 2010 12:04 Blaze Fabry

March 10, 2010 (Chinavestor) Quick facts about the Chinese stock universe at noon. Energy stocks gain on high oil, benefiting CNOOC Ltd. (NYSE:CEO), China's offshore oil specialist. Shares of Baidu.com (NASDAQ:BIDU) are making a run to the $550 level today... Chinese airliners remain strong from yesterday. Fushi Copperweld (NASDAQ:FSIN) is up +5.52% on strong earnings but ReneSolar Ltf. (NYSE:SOL) is trading sideways as net loss widened. China Carbon Graphite Group, Inc. (OTC:CHGI) is leveling off after a 92.4% run in the last five trading sessions. Fuqi International (NASDAQ:FUQI) bumped up +7.03% by noon with significant volume.

On the negative side overbought China plays continue to retreat. City Telecom (HK) shed -8.8%. China Digital TV Holding (NYSE:STV) lost over -5% and China Telecom (NYSE:CHA) continued to show weakness for the third day in a row. Other noticeable decliners for today include China Petroleum & Chemical Corp. known as Sinopec (NYSE:SNP) and AsiaInfo Holdings (NASDAQ:ASIA).

Details: crude price remains firm above $80 a barrel, pushing energy stocks higher for the day. CNOOC Ltd. (NYSE:CEO) is the third largest Chinese oil producer after Petrochina (NYSE:PTR) and China Petroleum & Chemical Corp. (NYSE:SNP). CNOOC Ltd. (NYSE:CEO) is a pure oil producer with no refining capacity thus any increase in the oil price helps CEO's top and bottom line on the same time.

Shares of Baidu.com (NASDAQ:BIDU) advanced +$9.76 by noon on Wednesday, approaching the $550 level. The company reported robust fourth quarter earnings - but investors will have to wonder where the ceiling might be. Baidu.com (NASDAQ:BIDU) was not overbought this morning, according to the latest report published before the open. "Momentum is back for China stocks according to technical indicators".

Chinese airliners are on fire - but beware, China Southern Airlines (NYSE:ZNH) became overbought according to the overbought report this morning. China Eastern Airlines (NYSE:CEA) is riding on the back of ZNH as the Chinese government injected cash into the two largest airliners earlier in 2010. We have predicted the fall of China Eastern Airlines (NYSE:CEA) at the end of February based on technicals. We said on February 26 that "China Eastern Airlines (NYSE:CEA) has been advancing five days in a row and this is clearly showing on the overbought monitor. But time has come to take profits."

Fuqi International (NASDAQ:FUQI) is up strongly today on no apparent news. The company is expected to report earnings in the second part of the month - current strength might be just a run up before earnings...

Talking about market movers: today's -1.85% drop of China Carbon Graphite Group, Inc. (OTC:CHGI) might look like a dog but considering that the stock is up +90% since last Wednesday, today's drop doesn't make me cry.

Fushi Copperweld (NASDAQ:FSIN) reported better-than-expected but guided lower. Still the stock is trading +5.4% higher with heavy underlying volume. While many may think FSIN is a good buy right now, I believe it's too late and weak revenue growth into 2010 might actually leave investors in the red. Today is a good day to take profits, actually. Related story: Fushi Copper reports record profit, strong sales - but guides lower.

ReneSola Ltd. (NYSE:SOL) reported before the open this morning but fell as net loss widened. But smart investors realized that most of the loss is explained by a provision to cover potential losses from a supplier, a one time item. Shipments and revenue growth remains robust for ReneSola Ltd. (NYSE:SOL) with a higher guidance for 2010. Related story: ReneSola is in the red but says worst is over.

The fall of China Digital TV Holdings (NYSE:STV) was foretold this morning by the overbought monitor. "China Digital TV Holdings (NYSE:STV) is on the top of the overbought chart this morning, suggesting the security became overbought and is ready for a pullback". But this doesn't mean STV is doomed - it's just a technical pull back based on technicals. Related story: Momentum is back for China stocks according to technical indicators.

Shares of China Telecom (NYSE:CHA) fell $-.37 but again, this came as a no surprise. The stock was overbought as of last week and we pointed out multiple times to TAKE PROFITS. "Again, China Telecom (NYSE:CHA) looks overbought and might take a breather." - we said on last Thursday in the Overbought China stocks to watch on Thursday.

Sinopec (NYSE:SNP) is hurt by higher oil price as margins erode for China's largest oil refiner when price of oil increases. AsiaInafo Holdings (NASDAQ:ASIA) has been volatile with strong earnings but confused investors. City Telecom (NASDAQ:CTEL) is another volatile China play that had a tremendous run but is hitting a resistance level over $13 a share.

Knowledge base

China stock market summary March 9, 2010

Tuesday, 09 March 2010 17:03 Blaze Fabry

March 9, 2010 (Chinavestor) Tuesday was a big reversal day for the NASDAQ and other U.S. indices, goofing up China stocks investors on the side. Home Inns & Hotel Management (NASDAQ:HMIN) ended the day with a $-1.14 loss as investors took a second look at earlier results. Sina Corp. (NASDAQ:SINA) gave back some of earlier gains following earnings announcement last week. Shares of Focus Media Holdings (NASDAQ:FMCN), China Eastern Airlines (NYSE:CEA), China Telecom (NYSE:CHA) ended in the red as well.

China Life Insurance (NYSE:LFC) advanced on strong profit outlook while China Southern Airlines (NYSE:LFC) jumped as trading resumed. AsiaInfo Holdings (NASDAQ:ASIA) were trading above $30/share but failed to close above the psychologically important level.

Shares of Baidu.com (NASDAQ:BIDU) advanced the most in dollar term on Tuesday, advancing $4.77 with heavy underlying volume. Baidu.com has shown resilience as earnings were bulletproof, sending shares of the company above $500 for the first time at the end of February. Now BIDU is fighting its way to the $550 level, a landmark that the stock can clear if market conditions remain favorable.

Shares of China Southern Airlines (NYSE:ZNH) advanced $2.95 thanks to an analyst upgrade and cash injection from her parent company. But don't expect much upside for the stock given her already strong performance YTD.

China Life Insurance (NYSE:LFC) rose $2.15 for the day following news that the company is going to report at least 200% net income growth for 2009 compared to 2008. What's interesting about today's surge is that we published this information earlier on Monday but the Street didn't listen. It took investors a full day to digest such great news. Related story: China Life Insurance Profit Growth of 200% in 2009

AsiaInfo Holdings (NASDAQ:ASIA) is another liquid NASDAQ listed China play that some of our investors follow. The stock is up +20% for the last five days and strong underlying volume suggest more upside is possible.

Stocks that disappointed investors on Tuesday include Home Inns & Hotel Management (NASDAQ:HMIN). The company reported revenue and earnings decline from previous quarter but our analysis reveals significant intrinsic value of the stock. We think HMIN is undervalued and has significant upside potential. Read related story: Don't be goofed by Q4 results: HMIN remains undervalued.

Another real estate and property related company, E-House Holdings (NYSE:EJ) reported fourth quarter and full year financial results today. The stock opened up lower but managed to come back somewhat to the close. Nevertheless EJ ended the day in the red - but we believe the stock is another good buy for the value investor. Related story: Banner year for EJ with cash dividend.

Shares of China Eastern Airlines (NYSE:CEA) ended the day -$.54 lower after a boring session. Shares of the company advanced 5 days in a row the last week in February just to make a complete reversal and lose 4 days in a row. We are of a view that CEA is still looking for direction and volatility is going to stay.

Shares of China Telecom (NYSE:CHA) fell $-.36 -as we predicted this morning using the overbought/oversold report. We wrote this morning that "Hong Kong listed H-shares of China Telecom (HKG:0728) fell -0.80% today suggesting profit taking has started in Asia. We have said for two day that large cap NYSE listed stocks like China Telecom (NYSE:CHA) don't stay overbought for a long time and as such take profits. Hope you listened to this advice and maximized your profits." Related story: Risk increases as China stocks advance.

Knowledge base

Chinese internet stocks fly high, earnings hurt EJ, CRIC

Tuesday, 09 March 2010 13:32 Blaze Fabry

March 9, 2010 (Chinavestor) Most Chinese internet stocks have advanced on Tuesday by noon, including big gun Shanda Interactive (NASDAQ:SNDA), Sohu.com (NASDAQ:SOHU) and Baidu.com (NASDAQ:BIDU). Earnings announcements were mixed for the day so far: E-House Holdings (NYSE:EJ) reported blockbuster numbers yet failed to gain traction on the Street. China Real Estate Information Corporation (NASDAQ:CRIC) reported all right but fell on sector weakness. WuXi Pharmatech (NYSE:WX) is trading sideways with a positive bias after reporting a dismal quarter but promising outlook.

Stocks on the move include China Life Insurance (NYSE:LFC) is up $2.55 or 3.73% before 1:30 P.M. following net income upgrade. China Southern Airlines (NYSE:ZNH) is up +16.67% on analyst upgrades and a cash injection from her parent. City Telecom (NASDAQ:CTEL) tumbled $-.95 today as the stock became overbought - as we pointed it out just yesterday.

China ADR stock research

ADR market

China stock market summary, Friday 1:00 P.M.

China stocks show signs of vulnerability

Movers and shakers: China stock lunch break March 10, 2010

China stock market summary March 9, 2010

Chinese internet stocks fly high, earnings hurt EJ, CRIC

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