Next on the list is Solarfun Power (SOLF), a solar-cell manufacturer that came public almost eight months ago. Shares quickly hit $17 as demand for Chinese solar stocks went through the roof. A few months back, Solarfun reported a horrible quarter, sending shares down as much as 25% in a single day. This, though, in hindsight was a great buying opportunity, as Solarfun now has more than $100 million in cash on its balance sheet.
Last week, Solarfun announced that it has secured three multiyear framework commitments, which should consistently drive earnings for some time. It also announced that it signed its first non-domestic, long-term supply agreement (which starts in 2008). Outside businesses are starting to notice Solarfun, and so should investors.
I also like Aluminum Corp. of China (ACH), PacificNet (PACT), China Precision Steel (CPSL) among others. To see more detailed analysis of the above picks and others, check out the Chinese Rocket Stocks Part III portfolio on Stockpickr.com.
- In July, I compiled the first Chinese Rocket Stocks. Here's the column and the portfolio.
- In August, I compiled Chinese Rocket Stocks Part II. Here's the column and the portfolio.