Category Archives: China

Next Hot China Auto Stock? China Auto Logistics (CALI)

China stocks have been one of the best places to profit for traders and longer term investors alike over the past several years and that continues today.  Granted, the risk increases with each passing day as the market continues to push higher off the March lows, but the longer term opportunities are here to stay.  The longer term investor may just want to practice a little patience before diving in after such a torrid run 🙂

I like to focus on niches of the China market and certainly my focus in the coming years will be on companies in the green energy space, which would include everything from solar, to wind, to electric cars to water conservation and treatment.  China is leading the way in alternative energy technology and will continue to pour billions into it to ensure they remain on top.  Back in June, I focused on the China water industry with a look at Duoyuan Global Water (DGW) ahead of its IPO.   It’s just one of a few China water plays that have been on fire in recent months, with gains of 100 – 300%.  For news, analysis and tracking of all the China alternative energy play, you might like to have a look at a new site I launched last year called Green Stocks Central.

Today, I shift gears a bit and focus on the China auto industry which has seen tremendous growth over the past year. 

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Sina (SINA): China’s Largest Internet Portal Breaks Out

Sina.com (SINA) is China’s largest internet portal with over 200 million registered users across not only China but Taiwan, Hong Kong, North America.  The company continues to post outstanding growth each quarter despite a slumping global economy and beginning to tap into the trend of user generated content with the launch of SINA Blog and SINA Podcasting.  Considering that collectively, Chinese internet users spend more than 10x the amount of time online as US users do, that’s a whole lot of user generated content and potential ad revenue.

What stands out to me in terms of its financials is the fact the company has been posting accelerating quarter over quarter revenue growth over the past two years.  Ok, well not quite .. in the last quarter the company reported revenue growth of 44% vs the previous quarter growth of 64% so the streak has stopped, but still mighty  impressive growth.  Quarter over quarter earnings growth is equally as impressive over the past 8 quarters with growth of 19%, 29%, 28%, 31%, 74%, 59%, 38% and 44%.  The company will report its 1Q 2009 results within the next couple weeks.

Continue reading Sina (SINA): China’s Largest Internet Portal Breaks Out