Weekly Stock update

China Stock Weekly Roundup March 15-19

Saturday, 20 March 2010 09:49 Blaze Fabry

March 20, 2010 (Chinavestor) Earnings, strong dollar, and Chinese fiscal tightening combined with a stimulus exit drove China stocks prices for the week. Most extreme movers were City Telecom (H.K.) (NASDAQ:CTEL) to the upside and Fuqi International (NASDAQ:FUQI) to the downside.

The earnings calendar was full of action for the week. KongZhong Corp. (NASDAQ:KONG) is one of the best performing China stock of the week thanks to strong earnings. But most small cap China stocks reported disappointing financials, crashing share prices for HQ Sustainable Maritime (AMEX:HQS), AirMedia Group (NASDAQ:AMCN), China TechFaith Wireless (NASDAQ:CNTF), and China SkyOne Medical (NASDAQ:SKI) among others.

The dollar strengthened on the woes of the euro, softening oil and commodity prices. Chinese solar stocks underperformed as a result, with Trina Solar (NYSE:TSL) losing -12.99% for the week. Part of the fall is attributed to a secondary offering of 7.9 million ADRs, diluting EPS and other valuation measures.

Inflation has gained momentum in China raising chances of an interest rate increase. Bank of India just did so on Friday, sending equity markets lower world wide. Odds are increasing that China will start exiting stimulus measures soon as the economy has been recovering steadily. The exit will hurt the auto industry, one of the major beneficiaries of the stimulus program. Shares of China Automotive Systems (NASDAQ:CAAS) and Tongxin International (NASDAQ:TXIC) felt the pinch for the week, giving up -12.8% and -13.7% of their share price, respectively.

China Stock Weekly Roundup March 8 - 12

Friday, 12 March 2010 15:48 Blaze Fabry

March 12, 2010 (Chinavestor) Mixed economic news left China stocks with no direction by the end of the week. The Hang Seng Index advanced +2.0% the week but is still in the red for the year. The S&P 500 advanced +1.3%. Most of the gains took place at the first three days of the week for Chinese stocks but higher inflation numbers in China prompted a sell-off in Shanghai and rendered trading in Hong Kong to a narrow range. With a slightly positive bias on their back, Chinese stocks took advantage of earnings and related stock specific news. Some of the best performing Chinese ADRs of the week were China Southern Airlines (NYSE:ZNH), Fushi Coperweld (NASDAQ:FSIN), ATA Inbc. (NASDAQ:ATAI), China Architectural Engineering (NASDAQ:CAEI), Agria Corp. (NYSE:GRO), and New Oriental Education (NYSE:EDU).

Notable decliners of the week include Acorn International (NYSE:ATV), WuXi Pharmatech (NYSE:WX), Gushan Environmental Energy (NYSE:GU), Home Inns & Hotel Management (NASDAQ:HMIN), General Steel Holdings (NYSE:GSI), and ReneSola Ltd. (NYSE:SOL).

China Southern Airlines (NYSE:ZNH) advanced +21.3% from last Friday as trading resumed after a long break. The company got significant cash injection from her state owned parent to shore up its balance sheet and make it ready for acquisitions. But after two days of huge gap up shares of the company became overbought and started to decline. Related overbought chart from Wednesday- Momentum is back for China stocks according to technical indicators.

Strong earnings of Fushi Copperweld (NASDAQ:FSIN) continued to rally after earnings as both revenues and net profit increased from previous quarter. Shares of the company became overbought and are subject to a short term pullback. Earnings related analysis: Fushi Copper reports record profit, strong sales - guides lower.

Shares of ATA Inc. (NASDAQ:ATAI) ran up $.50 in the last 30 minutes of trading on Friday. This huge uptick was not accompanied by similar increase in volume, suggesting money flows were weak during the rally. This is a bearish sign - or a sign that downside risk is greater than upside potential.

Shares of China Architectural Engineering, Inc. (NASDAQ:CAEI) advanced +13.4% for the week but light volume suggests most of the rally is over. Another factor to consider is that most of the gains took place on Wednesday and Thursday while Friday was flat. Some may think it was just a breather but we're of a view that most of the gains are over and CAEI is unlikely to replicate similar gains the upcoming week.

Shares of small cap Agria Corporation (NYSE:GRO) advanced $.37 or +16.74% on Friday making up most of the gains for the week. Heavy volume accompanies the significant increase, a sign that there have been some gains left for Monday. But investors have to be careful because shares of Agria Corp. (NYSE:GRO) became overbought and a technical pullback is likely to happen.

New Oriental Education (NYSE:DU) is a stock that has some upside left despite a significant run this week. The stock is not overbought yet and is fueled by a Deutsche Bank upgrade. The company has a solid balance sheet, plenty of cash - so the rally might have more room to go.

Most of the weakness for the week are earnings related. Acorn International (NYSE:ATV) fell apart on Friday following worse-than-expected quarterly and full year financial report. Weak numbers prompted the resignation of the chief financial officer of the company. Despite a significant drop in share price this week, don't expect Acorn Int. (NYSE:ATV) to recover next week. Five reasons to shun ATV after '09 Q4.

WuXi Pharmatech (NYSE:WX) issued a positive outlook but current numbers failed to impress investors, sending shares of the company -12.7% for the week. The stock became oversold and considering that earnings were not as horrible as the stock price would suggest, WuXi Pharmatech (NYSE:WX) may be up for a pleasant surprise next week. WuXi Pharma lacks growth, promises more.

If you wanted to guess which China stock will be kicked off the NYSE, Gushan Environmental Energy (NYSE:GU) would score high. Low share price, light volume and a disastrous quarterly and full year financial report is a sure recipe for a delisting. Gushan has it all. Revenues fell -77% YoY and net loss widened. One thing is for sure: Gushan Environmental Energy (NYSE:GU) is not investment grade.

Another stock we downgraded was UTStartcom (NASDAQ:UTSI). This small cap company is still a fraction of her former size and is not out of the woods yet. While revenues recovered from previous quarter, net loss widened. UTStarcom 2009 Q4 - not investment grade.

Shares of Home Inns & Hotel Management (NASDAQ:HMIN) suffered a heavy blow this week as earnings disappointed the Street. Chinavestor analyst team was much more impressed than Wall Street as the following report testifies. Don't be goofed by Q4 results. Home Inn remains undervalued.

Shares of ReneSola Ltd. (NASDAQ:SOL) fell -5.83% for the week as earnings disappointed. Revenues and shipment of modules increased but losses widened- a significant deviation from industry leader Suntech Power (NYSE:STP) or Trina Solar (NYSE:TSL). These latter two reported revenue and earnings growth; STP accelerated profitability throughout 2009. For a ReneSola Ltd. (NYSE:SOL) specific story, read: ReneSola is in the red for 2009 but says worst is over. For a comprehensive solar sector overview, read Complete 2009 Q4 China solar stock guide.

Shares of General Steel Holdings (NYSE:GSI) fell five days in a row and are becoming oversold. This in turn suggests a technical rally is likely in the first part of the upcoming week. But it's going to be earnings that will dominate next week - the company is schedule to release earnings on Monday.

Another notable development of the week was China's largest search engine company making history. Shares of Baidu.com (NASDAQ:BIDU) broke through the $550 ceiling making investors wonder if $600 is next... Related story: Baidu.com makes it to $550.

Looking forward, earnings are going to dominate on Monday. Global Sources Ltd. (NASDAQ:GSOL), China Finance Online (NASDAQ:JRJC), General Steel (NYSE:GSI), Focus Media Holdings (NASDAQ:FMCN), Simcere Pharma (NYSE:SCR), and China TechFaith Wireless (NASDAQ:CNTF) are among those Chinese companies that will release earnings that day.

China Stock Weekly Roundup March 1 - 5

Saturday, 06 March 2010 10:27 Blaze Fabry

March 6, 2010 (Chinavestor) The first week of March was about earnings and mixed market sentiment for Chinese stocks. While the DJIA rallied on hopes that the nation is starting to add jobs soon, Chinese investors sent the Shanghai Composite (SHA:000001) down over -2.3% on Thursday - the most in five weeks - as rumors spread that the government is going to tighten fiscal policy to fight inflation. Adding earnings to the mix made the week everything but easy for China stock investors.

Stocks mentioned in this report include Shanda Games (NASDAQ:SNDA), Shanda Interactive (NASDAQ:SNDA), Perfect World (NASDAQ:PWRD), and Giant Interactive (NYSE:GA) from the online game sector. Mindray MEdical (NYSE:MR), Home Inns & Hotels Management (NASDAQ:HMIN), VisionChina Media (NASDAQ:VISN). Solar stocks reporting the week included Canadian Solar (NASDAQ:CSIQ), Suntech Power (NYSE:STP) and Solarfun Power Holdings (NASDAQ:SOLF). Sina Corp. (NASDAQ:SINA) reported on Thursday after the close providing additional insight into the Chinese internet sector. Spreadtrum Communications (NASDAQ:SPRD) and 51job Inc (NASDAQ:JOBS) reported this week in addition.

China Stock Weekly Roundup Feb. 22- 26

Saturday, 27 February 2010 10:00 Blaze Fabry

Feb. 27, 2010 (Chinavestor) Stock markets traded sideways for the week giving no indication which sectors or stocks are going to move. Earnings have stated to come out once the Chinese New Year was over. As a result, trading was choppy with no indication what the first week of March is going to be.

Stocks mentioned in this report include NetEase.com Inc. (NASDAQ:NTES), Trina Solar (NYSE:TSL), China Eastern Airlines (NYSE:CEA), China Unicom (NYSE:CHU), Semiconductor Manufacturing (NYSE:SMI), China Automotive Systems (NASDAQ:CAAS), Wonder Auto Technology (NASDAQ:WATG), Tongxin International (NASDAQ:TXIC), Shanda Games (NASDAQ:GAME), Shanda Interactive (NASDAQ:SNDA), iant Interactive (NYSE:GA), Perfect World (NASDAQ:PWRD), Suntech Power Holdings (NYSE:STP), Canadian Solar (NASDAQ:CSIQ) and Yingli Green Energy (NYSE:YGE).

Economic indicators are mixed for the U.S. Soft home sales numbers and higher unemployment are a reminder that the recovery will be gradual and slow - but better than expected GDP reading suggests the picture is not so dark. China has her own challenges stemming from uncertainty how the exit from the stimulus will play out. Some fear a hard lending is the more likely scenario after record lending in 2009 and in January 2010 have likely contributed to the increase of non-performing loans. Investors remained cautious in China; the Shanghai Composite Index shed -2.85% while the Hang Seng Index rebounded +3.59% for the week.

Asian economic indicators for the upcoming week include Japan's unemployment number and household spending on Tuesday. Chinese PMI index will be released the week as well and is expected to show a healthy expansion in manufacturing activity for February.

Some of the key earnings belonged to NetEase.com Inc. (NASDAQ:NTES), one of the leading companies from the Chinese online game developer and operator sector. Revenue and earnings grew from previous quarter but online game margins slimmed. Online advertisement margins improved making up for most of the weakness in the game sector. The markets gave earnings of NetEase.com Inc. (NASDAQ:NTES) a nod and lifted her share price +2.94% for the week. More coverage : NetEase.com Q4 profit increase- more than facts.

Trina Solar (NYSE:TSL) is a heavy weight from the solar sector. The company reported strong revenue growth with better than expected gross margins of 32.6%. The bad news was a warning that margins are likely to slip to 26%-28% for 2010 first six months, sending her shares down -9.87% for the week.

Shares of China Eastern Airlines (NYSE:CEA) advanced five days in a row sending her shares +13.9% higher for the week. February has been an extremely good month for airliners and for China Eastern Airlines (NYSE:CEA) in particular; shares of CEA advanced +28.24% for February. While CEA has not reported 2009 fourth quarter earnings yet, Singapore Airlines and Cathay Pacific did. With the Shanghai Expo 2010 around the corner, analysts expect CEA to get the lion share of international travel in and out of the city, bringing in tens of millions of visitors for the event.

China Unicom (NYSE:CHU), the second largest Chinese mobile carrier, jumped +8.18% on Friday following a Deutsche Bank upgrade from Sell to BUY. All major three carriers have reported January operational statistics earlier the week with mixed results. Related story: China Unicom lags despite improved January statistics.

Looking at the best performing Chinese ADRs for the week, Semiconductor Manufacturing (NYSE:SMI) took the lead with a +19.59% advance. Highly volatile, smaller cap NASDAQ names followed suit. China Automotive Systems (NASDAQ:CAAS) continued the recovery from February lows and another car company, Wonder Auto Technology (NASDAQ:WATG), advanced over 10% as well. Interestingly, Tongxin International (NASDAQ:TXIC) failed to gain as much traction for the week despite issuing a 2009 revenue guidance above analysts estimates this week. China's February auto sales numbers are expected to remain strong with healthy margins. Chinese investors snapped up shares of SAIC Motor Corp. (SHA:600104) this week, making it the best performing stock from the SSE-50 Index.

Top Ten China Stocks of the Week

Earnings will be in focus for the upcoming week. Shanda Games (NASDAQ:GAME) and her parent company, Shanda Interactive (NASDAQ:SNDA), are going to report before the market opens on Monday. Shanda Games (NASDAQ:GAME) is the largest online game operator and developer in China and her earnings will have impact on the rest of the sector. While NetEase.com (NASDAQ:NTES) and Changyou.com (NASDAQ:CYOU) have already reported and thus will be less effected, expect additional volatility for Giant Interactive (NYSE:GA). Perfect World (NASDAQ:PWRD) is going to report on Monday.

Another key earnings is coming from Suntech Power Holdings (NYSE:STP), the largest Chinese solar maker measure by market cap. With Trina Solar (NYSE:TSL) already reported, investors will get a fairly good picture about the overall financial health of the industry. Expect high volatility for smaller solar stocks such as Canadian Solar (NASDAQ:CSIQ) and Yingli Green Energy (NYSE:YGE).

For a complete earnings calendar for the upcoming week, visit China Stocks Earnings Calendar March 1-5.

China Stock Weekly Roundup Feb. 16 - 19

Saturday, 20 February 2010 13:32 Blaze Fabry

Feb. 20, 2010 (Chinavestor) A low profile week makes history: shares of Baidu.com (NASDAQ:BIDU) closed above $500 for the first time in the stock's history. The week started slowly with President's Day Holiday on Monday, shutting down U.S. equity markets. The Chinese economic calendar was basically empty as most of China is shut down for the week in observance of the Chinese New Year. The Hong Kong Stock Exchange (HKEx) was closed from Monday to Tuesday while exchanges in Shanghai and Shenzhen were closed for the whole week.

And while U.S. equities ended the week higher Chinese stocks continued to edge lower with low underlying volume. The earnings calendar for the week was extremely light, only China Precision Steel (NASDAQ:CPSL) reporting on Tuesday. Better-than-expected earnings propelled the stock up 20% for the day but the company failed to gain traction and edged lower for the rest of the week. This came as no surprise to us as we issued a somewhat bearish assessment of our own after the earnings: Take a second look at China Prec. Steel.