Top 5 China Companies To Buy For 2016


If it survives another 155 trading days without experiencing a significant drop, the present bull market in the Dow Jones Industrial Average (DJINDICES: ^DJI  ) will surpass that of the 2002-2007 subprime-mortgage bubble as the fifth-longest bull market since 1896. In just more than 1,100 trading days, the index has grown by nearly 140%, better than all but six other bull markets — and it’s within striking distance of sixth place, which would be in reach once the index’s value approaches 16,000 points.


One recent analysis by LPL Financial suggests that this is the strongest bull market since the end of World War II, at least in its first four-odd years of growth. Since only four other bull markets have even survived as long as this latest one since 1945, it’s not all that hard to make the comparison. But this limitation is a bit restrictive. We should look a little further back at the Dow’s century-plus wealth of data to see how all bull markets of similar or greater length have performed in their first four years. This bull market is widely regarded as one of the least trusted in modern investing history, but is that justified, or are investors scared for no reason?

Top 5 China Companies To Buy For 2016: China Gerui Advanced Materials Group Limited(CHOP)


China Gerui Advanced Materials Group Limited engages in the manufacture and sale of cold-rolled narrow strip steel products in the People’s Republic of China. The company converts steel manufactured by third parties into thin steel sheets and strips. It sells its products directly to its customers in a range of industries, including food and industrial packaging, construction and household decorations materials, electrical appliances, and telecommunications wires and cables industries. The company was formerly known as Golden Green Enterprises Limited and changed its name to China Gerui Advanced Materials Group Limited in December 2009. China Gerui Advanced Materials Group Limited is based in Zhengzhou, China.


Advisors’ Opinion:

  • [By Monica Gerson]

    China Gerui Advanced Materials Group (NASDAQ: CHOP) is expected to report its Q2 earnings.

    Ambarella (NASDAQ: AMBA) is estimated to post its Q2 earnings at $0.28 per share on revenue of $44.67 million.

  • [By Jake L’Ecuyer]

    Leading and Lagging Sectors
    On Tuesday, the basic materials sector proved to be a source of strength for the US market after Yellen statement. Huntsman (NYSE: HUN) shares surged 2.62 percent after reporting strong quarterly earnings, while China Gerui Advanced Materials Group (NASDAQ: CHOP) gained around 2.5 percent.

Top 5 China Companies To Buy For 2016: China Automotive Systems Inc.(CAAS)


China Automotive Systems, Inc., through its interests in Sino-foreign joint ventures, engages in the manufacture and sale of power steering systems and other component parts for the automotive industry in the People?s Republic of China. It offers a range of steering system parts for passenger automobiles and commercial vehicles. The company provides 4 separate series, 307 models of power steering, including rack and pinion power steering, integral power steering, electronic power steering and manual steering, steering columns, steering oil pumps, and steering hoses. China Automotive Systems, Inc. was founded in 2003 and is headquartered in Jing Zhou City, the People?s Republic of China.


Advisors’ Opinion:

  • [By Richard Schmidt]

    We admittedly bought into China Automotive Systems (CAAS) too soon. The stock is still down from our original recommendation price, but the future looks very bright.

  • [By Richard Schmidt]

    China Automotive Systems (CAAS), which makes auto systems and components, reported record-high net sales for the third quarter. The report excited investors, who bid the stock up about 30% for the month.

Top 5 China Companies To Buy For 2016: DAQQ New Energy Corp.(DQ)


Daqo New Energy Corp., together with its subsidiaries, manufactures and sells polysilicon in China. The company sells its polysilicon to photovoltaic product manufacturers for use in the processing of ingots, wafers, cells and modules for solar power solutions. It also produces and sells mono-crystalline and multi-crystalline modules to photovoltaic system integrators and distributors in China and internationally under its Daqo brand. The company was formerly known as Mega Stand International Limited and changed its name to Daqo New Energy Corp. in August 2009. Daqo New Energy Corp. was founded in 2006 and is headquartered Wanzhou, the People?s Republic of China.


Advisors’ Opinion:

  • [By Ali Berri]

    In trading on Friday, energy shares were relative leaders, up on the day by about 0.42 percent. Meanwhile, top gainers in the sector included Daqo New Energy (NYSE: DQ), up 9.4 percent, and Goodrich Petroleum (NYSE: GDP), up 6.2 percent.

  • [By Lisa Levin]

    Daqo New Energy (NYSE: DQ) shares gained 12.78% to $33.58 on quarterly results.

    SINA (NASDAQ: SINA) rose 7.26% to $51.29 after the company reported upbeat quarterly results.

Top 5 China Companies To Buy For 2016: Suntech Power Holdings Co. LTD.(STP)


Suntech Power Holdings Co., Ltd., a solar energy company, engages in the design, development, manufacture, and marketing of photovoltaic (PV) products. The company also provides engineering, procurement, and construction services to building solar power systems for certain related party and third party customers. Its products include monocrystalline and multicrystalline silicon PV cells; PV modules; and building-integrated photovoltaics products. In addition, the company provides PV system integration services, including designing, installing, and testing PV systems used in lighting for outdoor urban public facilities, as well as in farms, villages, and commercial buildings; and project development services. Its products are used to provide electric power for residential, commercial, industrial, and public utility applications. The company sells its products through value-added resellers, such as distributors and system integrators; and to end users, such as project develo pers primarily in Germany, Italy, Spain, France, Benelux, Greece, the United States, Canada, China, the Middle East, Australia, and Japan. Suntech Power Holdings Co., Ltd. is headquartered in Wuxi, the People?s Republic of China.


Advisors’ Opinion:

  • [By Paul Ausick]

    Stocks on the Move: BlackBerry Ltd. (NASDAQ: BBRY) is down 16.4% at $6.50 after announcing that no buyout bid will be forthcoming. Penn National Gaming Inc. (NASDAQ: PENN) is down 76.7% at $13.75 after spinning-off its real-estate holdings into a REIT. Suntech Power Holdings Co. Ltd. (NYSE: STP) is up 15.5% at $1.53 following the acquisition of its major operations in Wuxi.

  • [By Michael Lewis]

    Formerly the biggest maker of solar panels in the world, with more than 10,000 employees, China-based Suntech Power Holdings (NYSE: STP  ) has witnessed a long fall from grace. The nail in the coffin came in March, when the company failed to pay a $513 million debt obligation. Shortly following its default, the company sailed into Chinese bankruptcy protection. Fast-forward to this week and the company is trading more than 30% higher on a largely speculative rumor that Warren Buffett is looking to buy it.

  • [By Travis Hoium]

    Is Suntech still alive?
    Rumors swirled this week that Suntech Power (NYSE: STP  ) would be acquired by Warren Buffett’s subsidiary MidAmerican Energy. Suntech has defaulted on U.S. loans, and its Chinese operations are in insolvency, so it’s unknown exactly what Buffett would be buying. Then there’s the fact that Suntech doesn’t meet any of Buffett’s normal investing rules, so there are few industry observers who think an acquisition would go through.

  • [By Wall Street Sector Selector]

    Previous to last week’s solar flare, the sector has suffered through some awful growing pains. The financial crisis resulted in reduced subsidies for development in the rapidly-advancing photovoltaic power industry. Meanwhile, China increased government financing of its solar industry, having already established a strong presence in the sector with such companies as Suntech Power (STP) and LDK Solar (LDK).

Top 5 China Companies To Buy For 2016: Home Inns & Hotels Management Inc.(HMIN)


Home Inns & Hotels Management Inc. develops, leases, operates, franchises, and manages a chain of economy hotels in the People?s Republic of China. The company operates its hotels under the Home Inn brand name. As of April 28, 2011, it had approximately 800 Home Inns in operation and 1,000 Home Inns sealed in franchise agreements. The company was incorporated in 2001 and is headquartered in Shanghai, the People?s Republic of China.

Advisors’ Opinion:

  • [By Jim Jubak]

    We’ve been down this road with Home Inns and Hotels Management (HMIN) before. Which doesn’t make it any less scary.

    The stock is down 22.2% in the last ten days—despite solid—but certainly not spectacular—results for the fourth quarter, reported on March 12.

  • [By Monica Gerson]

    Home Inns & Hotels Management (NASDAQ: HMIN) is estimated to post its Q4 earnings at $2.18 per share on revenue of $1.54 billion.

    Qiwi plc (NASDAQ: QIWI) is expected to report its Q4 earnings at $0.28 per share on revenue of $50.00 million.

  • [By Belinda Cao]

    The Bloomberg China-US Equity Index (CH55BN) of the most-traded Chinese companies in the U.S. slumped 3.4 percent last week to a seven-month low of 89.04. The gauge traded at 13.5 times estimated earnings, 3.6 percent below the S&P’s valuation, data compiled by Bloomberg show. China Southern Airlines Co. (ZNH) and China Eastern Airlines Corp. (CEA) lost more than 6 percent April 5, while Home Inns & Hotels Management Inc. (HMIN) tumbled 16 percent in the week.