Top China ADR Portal

China ADR stock research


Warning: strtotime(): It is not safe to rely on the system's timezone settings. You are *required* to use the date.timezone setting or the date_default_timezone_set() function. In case you used any of those methods and you are still getting this warning, you most likely misspelled the timezone identifier. We selected the timezone 'UTC' for now, but please set date.timezone to select your timezone. in /home1/chinaves/public_html/libraries/joomla/utilities/date.php on line 56

Warning: date(): It is not safe to rely on the system's timezone settings. You are *required* to use the date.timezone setting or the date_default_timezone_set() function. In case you used any of those methods and you are still getting this warning, you most likely misspelled the timezone identifier. We selected the timezone 'UTC' for now, but please set date.timezone to select your timezone. in /home1/chinaves/public_html/libraries/joomla/utilities/date.php on line 198

Internet stocks on fire!!!

E-mail Print PDF

internet_2 January 30, 2012 (Chinavestor) There are four extremely overbought internet China stocks to look at today:  51job Inc. (NASDAQ:JOBS), Youku.com Inc. (NYSE:YOKU), Sohu.com Inc. (NASDAQ:SOHU) and Tudou Holdings (NASDAQ:TUDO). Part of the advance is due to Baidu.com Inc. (NASDAQ:BIDU), the most liquid Chinese internet stock, that is going to report earnings on Monday. Another factor is Facebook's upcoming IPO, responsible lifting shares of Renren Inc. (NYSE:RENN), Qihoo 360 Technology (NYSE:QIHU) among others.

Investors should keep in mind that overbought is not necessarily bearish. It just implies that a stock has run up too much, too fast and is ready to take a breather. Should earnings from Baidu.com Inc. (NASDAQ:BIDU) beat estimates, overbought Most Chinese internet stocks have a chance to extend the rally. Investors have to consider that most Chinese internet stocks are undervalued compared to 52 week prices. Sina Corp. (NASDAQ:SINA) or Sohu.com Inc. (NASDAQ:SOHU) has upside if BIDU reassures investors. But 51job Inc. (NASDAQ:JOBS) is looking too thin and is ready for a break even if the sector stays on fire.

Facebook's upcoming IPO ignited Renren Inc. (NYSE:RENN) and Qihoo 360 Technology (NYSE:QIHU), among others. Both stocks IPOd last year but were under-performing as interest dried up. Now valuations look cheap as investors embrace Facebook, the U.S. social network giant.

Chinese basic material stocks, Aluminum Corp. of China (NYSE:ACH) and Silvercorp Metals (NYSE:SVM) are looking vulnerable to a correction, according to a chart below.

OB_20120130

But it wasn't a cake walk for each technology stock. Shanda Games (NASDAQ:GAME) is trying to establish a bottom, along with China XD Plastics (NASDAQ:CXDC).

OS_20120130

Overbought A technical condition that occurs when prices are considered too high and susceptible to a decline. Overbought conditions can be classified by analyzing the chart pattern or with indicators such as the one above. A sharp advance from $15 to $30 in 2 weeks might lead a technician to believe that a security is overbought. Or, a security is sometimes considered overbought when the stock is trading out of its trading envelope and is approaching the theoretical high. It is important to keep in mind that overbought is not necessarily the same as being bearish. It merely infers that the stock has risen too far too fast and might be due for a pullback.

Oversold A technical condition that occurs when prices are considered too low and ripe for a rally. Oversold conditions can be classified by analyzing the chart pattern or with indicators such as the one above. A sharp decline from $30 to $15 in 2 weeks might lead a technician to believe that a security is oversold. Or, a security is sometimes considered oversold when the stock is trading below its trading envelope and is approaching theoretical lows. It is important to keep in mind that oversold is not necessarily the same as being bullish. It merely infers that the security has fallen too far too fast and may be due for a reaction rally.

aa_OBOS_expl_2weeks


If you like us, spread the word to the fellow investors on your favorite Social Bookmarking websites
Reddit! Del.icio.us! Mixx! Free and Open Source Software News Google! Live! Facebook! StumbleUpon! TwitThis Joomla Free PHP
 

!!! CHINAVESTOR.COM is for SALE !!!

BUY this domain with all its credentials. Chinavestor.com has been added to Google News and Finance since 2008! Huge web traffic upside potential! Website is optimized for Chinese stocks but can easily be tweaked. Contact Seller Here

sale1
G_news
Check out The Benefits of Getting into Google News!

Free weekly newsletter

Get hot China stock news every Monday