Global markets have been weak for the past couple of months, but one of the hardest hit markets has been China. Many investors have been concerned about the Chinese economy and the possibility that it could have a hard landing, due to rising interest rates and what some believe is a overheated real estate market. Investors are correct to be concerned in the short-term but investors with a longer investment horizon could be getting a fantastic opportunity to buy at what might be historic lows. China has an already huge population base and that is only going to grow in the future.
A recent article on CNBC states "Chinese stocks are extremely undervalued and U.S. investors should heavily increase their exposure to benefit from the emerging market's long-term growth, says Burton Malkiel, author of the financial classic "A Random Walk Down Wall Street." Read the full article here. Now that these stocks have fallen to much lower levels, they could be poised to double in the next couple of years. Here are a number of stocks that could provide high returns for many years:
Baidu, Inc. (BIDU) is based in China and is a leading search engine company. This stock has had an incredible run over the past few years. However, due to this run, the valuation is at nosebleed levels and was recently trading for about 50 times earnings. This stock was trading for about $147 in September, then it dropped to around $100 per share before rebounding sharply. The growth potential is significant but I think it only makes sense to buy on significant drops.
Here are some key points for BIDU:
Current share price: $139.98
The 52 week range is $94.33 to $165.96
Earnings estimates for 2011: $2.92 per share
Earnings estimates for 2012: $4.39 per share
Annual dividend: none
Yingli Green Energy (YGE) is a leading maker of solar products including photovoltaic (PV) cells, PV modules, integrated PV systems, and more. This stock was trading for over $6 per share in August and dropped by about 40% recently. The shares are trading well below book value and the price to earnings ratio is around 4.
Here are some key points for YGE:
Current share price: $3.92
The 52 week range is $2.75 to $13.59
Earnings estimates for 2011: 93 cents per share
Earnings estimates for 2012: 84 cents per share
Annual dividend: None
Trina Solar Ltd. (TSL) one of the largest makers of photovoltaic modules worldwide. Trina is well respected as a leader in this industry and it could be one of the first stocks to rebound. This stock has started to rebound off the lows, but still trades for a mere fraction of the 52 week high. It could be the right time to start buying in stages.
Here are some key points for TSL:
Current share price: $8.16
The 52 week range is $5.28 to $31.08
Earnings estimates for 2011: $1.40 per share
Earnings estimates for 2012: $1.23 per share
Annual dividend: None
Southern Cooper Corporation (SCCO) has copper mining, and refining operations in Peru, Mexico, and Chile. This stock has plunged to new lows recently along with the price of copper. While this stock appears to offer value, it has already rebounded sharply off the recent lows, so I would only consider buying in stages to average in.
Here are some key points for SCCO:
Current share price: $30.53
The 52 week range is $22.58 to $50.35
Earnings estimates for 2011: $2.87 per share
Earnings estimates for 2012: $3.08 per share
Annual dividend: $2.48 per share which yields 7.6%
China Mobile Limited (CHL) is a leading provider of telecommunication services in China. A weaker economy in China could slow down sales for this company and that might lower the growth rate and price to earnings ratio. Long term this looks like a solid investment, as mobile phone growth is likely to remain extremely strong in China.
Here are some key points for CHL:
Current share price: $48.63
The 52 week range is $43.51 to $53.81
Earnings estimates for 2011: $2.86 per share
Earnings estimates for 2012: $4.10 per share
Annual dividend: $1.83 per share which yields 3.7%
Sina Corp. (SINA) operates a number of popular websites in China. The sites include Weibo.com which is a blogging site, and Sina.com which has news and info on many subjects. This stock appears to be in a solid downtrend, but it might be time to start accumulating for a rebound. This stock was trading around $110 per share just recently and now looks oversold.
Here are some key points for SINA:
Current share price: $79.46
The 52 week range is $51.27 to $147.12
Earnings estimates for 2011: 95 cents per share
Earnings estimates for 2012: $1.60 per share
Annual dividend: none
E-Commerce China DangDang Inc. (DANG) is a leading online retailer in China. Many view this company to be the Amazon.com (AMZN) of China as they sell a wide variety of products. DangDang recently announced a deal which added major appliances to the products offered online. Revenues are expected to grow over 50% annually for the next several years. With the stock trading for a fraction of the 52 week high, it makes sense to go bargain hunting here.
Here are some key points for DANG:
Current share price: $6.60
The 52 week range is $4.50 to $36.40
Earnings estimates for 2011: a loss of 18 cents per share
Earnings estimates for 2012: a loss of 25 cents per share
Annual dividend: None
Data is sourced from Yahoo Finance. No guarantees or representations are made. Hawkinvest is not a registered investment advisor and does not provide specific investment advice. The information is for informational purposes only. You should always consult a financial advisor.
A recent article on CNBC states "Chinese stocks are extremely undervalued and U.S. investors should heavily increase their exposure to benefit from the emerging market's long-term growth, says Burton Malkiel, author of the financial classic "A Random Walk Down Wall Street." Read the full article here. Now that these stocks have fallen to much lower levels, they could be poised to double in the next couple of years. Here are a number of stocks that could provide high returns for many years:
Baidu, Inc. (BIDU) is based in China and is a leading search engine company. This stock has had an incredible run over the past few years. However, due to this run, the valuation is at nosebleed levels and was recently trading for about 50 times earnings. This stock was trading for about $147 in September, then it dropped to around $100 per share before rebounding sharply. The growth potential is significant but I think it only makes sense to buy on significant drops.
Here are some key points for BIDU:
Current share price: $139.98
The 52 week range is $94.33 to $165.96
Earnings estimates for 2011: $2.92 per share
Earnings estimates for 2012: $4.39 per share
Annual dividend: none
Yingli Green Energy (YGE) is a leading maker of solar products including photovoltaic (PV) cells, PV modules, integrated PV systems, and more. This stock was trading for over $6 per share in August and dropped by about 40% recently. The shares are trading well below book value and the price to earnings ratio is around 4.
Here are some key points for YGE:
Current share price: $3.92
The 52 week range is $2.75 to $13.59
Earnings estimates for 2011: 93 cents per share
Earnings estimates for 2012: 84 cents per share
Annual dividend: None
Trina Solar Ltd. (TSL) one of the largest makers of photovoltaic modules worldwide. Trina is well respected as a leader in this industry and it could be one of the first stocks to rebound. This stock has started to rebound off the lows, but still trades for a mere fraction of the 52 week high. It could be the right time to start buying in stages.
Here are some key points for TSL:
Current share price: $8.16
The 52 week range is $5.28 to $31.08
Earnings estimates for 2011: $1.40 per share
Earnings estimates for 2012: $1.23 per share
Annual dividend: None
Southern Cooper Corporation (SCCO) has copper mining, and refining operations in Peru, Mexico, and Chile. This stock has plunged to new lows recently along with the price of copper. While this stock appears to offer value, it has already rebounded sharply off the recent lows, so I would only consider buying in stages to average in.
Here are some key points for SCCO:
Current share price: $30.53
The 52 week range is $22.58 to $50.35
Earnings estimates for 2011: $2.87 per share
Earnings estimates for 2012: $3.08 per share
Annual dividend: $2.48 per share which yields 7.6%
China Mobile Limited (CHL) is a leading provider of telecommunication services in China. A weaker economy in China could slow down sales for this company and that might lower the growth rate and price to earnings ratio. Long term this looks like a solid investment, as mobile phone growth is likely to remain extremely strong in China.
Here are some key points for CHL:
Current share price: $48.63
The 52 week range is $43.51 to $53.81
Earnings estimates for 2011: $2.86 per share
Earnings estimates for 2012: $4.10 per share
Annual dividend: $1.83 per share which yields 3.7%
Sina Corp. (SINA) operates a number of popular websites in China. The sites include Weibo.com which is a blogging site, and Sina.com which has news and info on many subjects. This stock appears to be in a solid downtrend, but it might be time to start accumulating for a rebound. This stock was trading around $110 per share just recently and now looks oversold.
Here are some key points for SINA:
Current share price: $79.46
The 52 week range is $51.27 to $147.12
Earnings estimates for 2011: 95 cents per share
Earnings estimates for 2012: $1.60 per share
Annual dividend: none
E-Commerce China DangDang Inc. (DANG) is a leading online retailer in China. Many view this company to be the Amazon.com (AMZN) of China as they sell a wide variety of products. DangDang recently announced a deal which added major appliances to the products offered online. Revenues are expected to grow over 50% annually for the next several years. With the stock trading for a fraction of the 52 week high, it makes sense to go bargain hunting here.
Here are some key points for DANG:
Current share price: $6.60
The 52 week range is $4.50 to $36.40
Earnings estimates for 2011: a loss of 18 cents per share
Earnings estimates for 2012: a loss of 25 cents per share
Annual dividend: None
Data is sourced from Yahoo Finance. No guarantees or representations are made. Hawkinvest is not a registered investment advisor and does not provide specific investment advice. The information is for informational purposes only. You should always consult a financial advisor.
