Thursday, June 26, 2008

Investing in Chinese Stocks - Some great resources

How do I find out about fast growing chinese companies, listed on the AMEX, NYSE or Nasdaq (ie. they have to comply with SEC standards vs. OTCBB stocks)? A ffew folks have asked me this in recent days so I'll toss some of my tools out here since anyone can access them.

Here are two resources - Between the two of them you can find tons of info. about the companies, those that worth a darn, etc.

What do I look for in a company?
1) HUGE revenue growth - 50% + annual with 75%-100% desired. I'd like to see $25 million + in sales as well.

2) I want reasonable prices (growth at a reasonable price - GARP investing)

3) I want PROFITS. I HATE buying companies that don't make $$$. It wreaks of not managing a business/bottom line. Companies that have a profit orientation (like the $$$ were their own) have higher ROE (return on equity) and generate larger shareholder returns over the long-term (just my 2 cents/opinion from what I have seen over the years.)

Resources I use

I use that site and check growth rates, info. about the company, etc.

Another great resource for looking at Q-Q trends, Y-Y trends, key stats and income statement/balance sheet info. is

Here is what I look for <--annual income growth <--quarterly growth to look for growth or lack thereof

Balance Sheets - I don't like companies with tons of debt. Heck, I would like to see nearly no debt at all! I would also like to see positive cash flow from operations

Great stockchart websites with technical analysis capabilities and good views/snapshots.

Sometime this weekend I'll post a list of Chinese companies listed here that are growing fast and furious, by sector. Maybe I can help you find a great company to invest in. To each their own re: investment style/thesis.

Dan Ross

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