BEIJING ��Profit growth at China�� major banks continued to decline in the third quarter as they dealt with a maturing Chinese economy and interest-rate pressure.
The impact of a summer cash squeeze also continued to be felt, with China Minsheng Banking Corp. (HK:1988) � (CMAKY) �blaming its relatively large borrowing from other banks for crimping its profitability.
In mid-June, the interest rate at which Chinese banks lend to one other spiked after banks found themselves running low on cash and China�� central bank declined to inject more money into the system. Analysts say the central bank was trying to stop banks from funding corporate lending using shorter-term interbank loans.
Top 5 Construction Material Companies To Invest In Right Now: KongZhong Corporation(KONG)
KongZhong Corporation, together with its subsidiaries, provides wireless interactive entertainment, media, and community services to mobile phone users in the People's Republic of China. It also involves in the development, distribution, and marketing of consumer wireless value-added services, including wireless application protocol, multimedia messaging services, short messaging services, interactive voice response services, and color ring back tones. In addition, it offers interactive entertainment services, such as mobile games, pictures, karaoke, electronic books, mobile phone personalization features, entertainment news, chat, and message boards; and through Kong.net offer news, community services, games, and other interactive media and entertainment services; and sells advertising space in the form of text-link, banner, and button advertisements. Further, the company develops and publishes mobile games, including downloadable mobile games and online mobile games cons isting of action, role-playing, and leisure games. As of December 31, 2009, it had a library of approximately 300 internally developed mobile games. Additionally, it develops online games; and provides consulting and technology services, as well as media and net book services. The company was formerly known as Communication Over The Air Inc. and changed its name to KongZhong Corporation in March 2004. KongZhong Corporation was founded in 2002 and is headquartered in Beijing, the People?s Republic of China
Advisors' Opinion:- [By Jake L'Ecuyer]
Top losers in the sector included China Unicom (Hong Kong) (NYSE: CHU), off 4.5 percent, and Kongzhong (NASDAQ: KONG), down 4.7 percent.
Top Headline
The Boeing Company (NYSE: BA) reported better-than-expected first-quarter profit. Boeing's quarterly profit declined to $965 million, or $1.28 per share, from a year-ago profit of $1.11 billion, or $1.44 per share. Its adjusted earnings surged to $1.76 per share compared to $1.73 per share. Its revenue climbed to $20.47 billion versus $18.89 billion. However, analysts were projecting earnings of $1.57 per share on revenue of $20.24 billion. For the full year, Boeing expects adjusted earnings of $7.15 to $7.35 per share. - [By Roberto Pedone]
One under-$10 wireless services player that looks poised for a big spike higher is KongZhong (KONG), which is a provider of WVAS and mobile games to mobile phone users and a wireless media company providing news, content, community and mobile advertising services through its wireless Internet sites in the PRC. This stock is off to a hot start in 2013, with shares up sharply by 53%.
If you take a look at the chart for KongZhong, you'll notice that this stock has been downtrending badly for the last two months, with shares plunging lower from its high of $14.92 to its recent low of $7.78 a share. During that downtrend, shares of KONG have been consistently making lower highs and lower lows, which is bearish technical price action. That move has now pushed shares of KONG into oversold territory, since its current relative strength index reading is 30.21. Shares of KONG are now starting to spike higher off its recent low of $7.78 a share and off its 200-day moving average of $7.95 a share. This spike could be signaling that the downside volatility for KONG is over in the short-term and the stock is ready to trend higher.
Traders should now look for long-biased trades in KONG if it manages to break out above some near-term overhead resistance at $8.50 a share with high volume. Look for a sustained move or close above that level with volume that hits near or above its three-month average action of 519,857 shares. If that breakout triggers soon, then KONG will set up to re-test or possibly take out its next major overhead resistance levels at $10 to its 50-day moving average at $11.33 a share.
Traders can look to buy KONG off any weakness to anticipate that breakout and simply use a stop that sits right below some key near-term support at $7.78 a share. One can also buy KONG off strength once it takes out $8.50 a share with volume and then simply use a stop that sits a comfortable percentage from your entry point.
- [By Seth Jayson]
Calling all cash flows
When you are trying to buy the market's best stocks, it's worth checking up on your companies' free cash flow once a quarter or so, to see whether it bears any relationship to the net income in the headlines. That's what we do with this series. Today, we're checking in on Kongzhong (Nasdaq: KONG ) , whose recent revenue and earnings are plotted below.
Top 10 China Stocks To Buy For 2014: TAL Education Group(XRS)
TAL Education Group, together with its subsidiaries, provides K-12 after-school tutoring services in the People?s Republic of China. It offers tutoring services to K-12 students covering various academic subjects, including mathematics, English, Chinese, physics, chemistry, and biology. The company provides tutoring services through small classes; personalized premium services, such as one-on-one tutoring; and online course offerings. As of May 31, 2011, it operated a network of 199 physical learning centers in Beijing, Shanghai, Guangzhou, Shenzhen, Tianjin, Wuhan, Nanjing, Hangzhou, Chengdu, and Xi?an; and eduu.com, an online education platform for online courses. The company also offers education and management consulting services, as well as sells software. It operates under the Xueersi brand. The company was founded in 2003 and is headquartered in Beijing, China.
Advisors' Opinion:- [By Lisa Levin]
TAL Education Group (NYSE: XRS) shares rose 4.30% to $20.86. The volume of TAL Education Group shares traded was 318% higher than normal. TAL Education's PEG ratio is 1.14.
Top 10 China Stocks To Buy For 2014: LDK Solar Co. Ltd.(LDK)
LDK Solar Co., Ltd., together with its subsidiaries, engages in the design, development, manufacture, and marketing of photovoltaic (PV) products; and development of power plant projects. It offers solar-grade and semiconductor-grade polysilicon; and multicrystalline and monocrystalline solar wafers to the manufacturers of solar cells and solar modules. The company also provides wafer processing services to monocrystalline and multicrystalline solar cell and module manufacturers; and sells silicon materials, such as ingots and polysilicon scraps. In addition, it engages in the production and sale of solar cells and modules to developers, distributors, and system integrators; and design and development of solar power projects in Europe, the United States, and China, as well as provides engineering, procurement, and construction services. LDK Solar Co., Ltd. operates in Europe, the Asia Pacific, and North America. The company was founded in 2005 and is based in Xinyu City, t he People?s Republic of China.
Advisors' Opinion:- [By Rick Munarriz]
Thursday
Solar-energy stocks are rising again, and LDK Solar (NYSE: LDK ) will give alternative-energy investors a fresh snapshot on the state of solar on Thursday. Yes, the market's braced for a significant quarterly deficit, but we're talking about a lot less red ink than LDK Solar was sporting a year earlier. - [By Travis Hoium]
There will be winners, though. Shares of polysilicon maker Renewable Energy fell 7% in trading immediately after the announcement because the company will likely see either lower prices or lower demand. But shares of GCL Poly, who manufactures in China and is the biggest polysilicon maker in the world, jumped 4% on Friday after the news was announced.�Renesola� (NYSE: SOL ) and LDK Solar� (NYSE: LDK ) also have lots of unused polysilicon capacity that will likely experience more demand because of the move. The question is if they have sufficient quality to supply the industry.
Top 10 China Stocks To Buy For 2014: Ctrip.com International Ltd.(CTRP)
Ctrip.com International, Ltd., together with its subsidiaries, provides travel services for hotel accommodations, airline tickets, and packaged tours in the People?s Republic of China. It also sells independent leisure travelers bundled package-tour products, which include transportation and accommodation, as well as guided tours covering various domestic and international destinations. In addition, the company offers Internet-related advertising, aviation casualty insurance, and air-ticket delivery services. Further, it sells Property Management System, a hotel information software; travel guidebooks, which provide information for independent travelers; and VIP membership cards that allow cardholders to receive discounts from various restaurants, clubs, and bars. The company was founded in 1999 and is headquartered in Shanghai, the People?s Republic of China.
Advisors' Opinion:- [By Yiannis Mostrous]
Ctrip.com International (CTRP)
With a 48% market share, Ctrip.com holds the crown as China's leading online travel agency, offering a one-stop shop for booking hotels, flights, and packaged tours.
- [By Jim Jubak]
Among stocks that are available to US investors through a listing in New York, the list includes Ctrip.com International (CTRP), China's biggest online travel retailer; Qihoo 360 (QIHU), a leading mobile security company; 58.com (WUBA), the Craigslist-like operator of a classified site, and SouFun Holdings (SFUN), the owner of China's biggest real-estate site.
Top 10 China Stocks To Buy For 2014: Qihoo 360 Technology Co. Ltd.(QIHU)
Qihoo 360 Technology Co. Ltd. provides Internet and mobile security products in the People's Republic of China. Its principal products include 360 Safe Guard, an Internet security product for Internet security and system optimization; 360 Anti-Virus, an anti-virus application to protect users? computers against trojan horses, viruses, worms, adware, and other forms of malware; and 360 Mobile Safe, a security program for the Google Android, Apple iOS, and Nokia Symbian smartphone operating systems. The company?s platform products comprise 360 Safe Browser, a Web browser; 360 Personal Start-up Page, a default homepage of 360 Safe Browser and a key access point to popular and preferred information and applications; 360 Application Store, a key access point to securely obtain and manage software and applications; and 360 Safebox, a solution that protects users against thefts of personal account information. It also provides online advertising services, including online marketi ng services and search referral services; and Internet value-added services comprising the operation of Web games developed by third-parties, remote technical support, and cloud-based services. The company was formerly known as Qihoo Technology Company Limited and changed its name to Qihoo 360 Technology Co. Ltd. in December 2010. Qihoo 360 Technology Co. was founded in 2005 and is based in Beijing, the People?s Republic of China.
Advisors' Opinion:- [By Brian Nichols]
Baidu continues to lose PC market share
In China, Baidu is the leader of Internet search with a 54.5% share of the market in PCs, according to Chinese statistics site CNZZ. While good, Baidu's share has shrunk from a high of nearly 80% in late 2012 and 67.7% last year. The beneficiaries of Baidu's loss are Qihoo 360 (NYSE: QIHU ) and Sohu (NASDAQ: SOHU ) . - [By Mark Hulbert]
Also receiving at least two buy recommendations from these market-beating advisers are two non-U.S. companies: Yandex (YNDX) �, the Russian search engine, and Qihoo 360 Technology (QIHU) �, the Chinese Internet company. Both also sport P/Es that are well above the market: Yandex�� is 28 and Qihoo�� is 51. Yet their PSRs are also lower than Twitter��, at 12 and 15.9, respectively.
- [By Rick Munarriz]
Baidu (NASDAQ: BIDU ) was the dot-com darling of China until last year, when the arrival of Qihoo 360's (NYSE: QIHU ) �rival search engine began to cast doubt on the theory that Baidu had the lucrative market all to itself.
Top 10 China Stocks To Buy For 2014: ATA Inc.(ATAI)
ATA Inc., through its subsidiaries, provides computer-based testing services in the People?s Republic of China. It offers services for the creation and delivery of computer-based tests utilizing its test delivery platform, proprietary testing technologies, and testing services; and provides logistical support services relating to test administration. The company?s computer-based testing services are used for professional licensure and certification tests in various industries, including information technology (IT) services, banking, securities, teaching, and insurance. Its e-testing platform integrates various aspects of the test delivery process for computer-based tests ranging from test form compilation to test scoring, and results analysis. ATA also provides career-oriented educational services, such as single course programs, degree major course programs, and pre-occupational training programs focusing on preparing students to pass IT and other vocational certification tests; test preparation and training programs and services to test candidates preparing to take professional certification tests in securities, futures, banking, insurance and teaching industries; online test preparation and training platform for the securities and banking industries; and test preparation software for the teaching industry. In addition, the company offers HR select employee assessment solution, an online system that utilizes its proprietary software and an inventory of test titles to help employers improve the efficiency and accuracy of their employee recruitment process. As of March 31, 2010, it had contractual relationships with 1,988 ATA authorized test centers. The company serves Chinese governmental agencies, professional associations, IT vendors, and Chinese educational institutions, as well as individual test preparation services. ATA Inc. was founded in 1999 and is based in Beijing, the People?s Republic of China.
Advisors' Opinion:- [By Jake L'Ecuyer]
Leading and Lagging Sectors
Industrials stocks gained Friday, with ATA (NASDAQ: ATAI) leading advancers. Meanwhile, gainers in the sector included Plug Power (NASDAQ: PLUG), with shares up 22 percent, and Korn/Ferry International (KFY), with shares up 12 percent. In trading on Friday, basic materials shares were relative laggards, down on the day by about 1.36 percent. - [By Jake L'Ecuyer]
Leading and Lagging Sectors
Industrials stocks gained Friday, with ATA (NASDAQ: ATAI) leading advancers. Meanwhile, gainers in the sector included Plug Power (NASDAQ: PLUG), with shares up 22 percent, and Korn/Ferry International (KFY), with shares up 12 percent. In trading on Friday, basic materials shares were relative laggards, down on the day by about 1.36 percent.
Top 10 China Stocks To Buy For 2014: CNOOC Limited(CEO)
CNOOC Limited, through its subsidiaries, engages in the exploration, development, production, and sale of crude oil, natural gas, and other petroleum products. The company?s oil and natural gas properties are located in offshore China, which include Bohai Bay, western south China Sea, eastern south China Sea, and east China Sea, as well as in Indonesia, Iraq, and other regions in Asia; and Oceania, Africa, North America, and South America. As of December 31, 2010, the company had net proved reserves of approximately 2.99 billion barrels-of-oil equivalent, including approximately 1.92 billion barrels of crude oil and 6,458.3 billion cubic feet of natural gas. It also provides bond issuance services; and has a joint venture with Bridas Energy Holdings. CNOOC Limited was founded in 1982. The company is headquartered in Central, Hong Kong, and is considered a Red Chip company due to its listing on the Hong Kong Stock Exchange. CNOOC Limited is a subsidiary of China National Of fshore Oil Corporation.
Advisors' Opinion:- [By Paul Ausick]
Endeavor owns assets onshore in the U.S. and in the U.K. region of the North Sea. The company expects to begin production ��mminently��at the Rochelle field which will be operated by Nexen, the former Canadian firm that was acquired by China�� Cnooc Ltd. (NYSE: CEO) earlier this year.
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