Chinese Micro-Caps to Own Now

NEW YORK (TheStreet) -- Uncertainty is everywhere. If you recognize this, you can make it work in your favor by buying companies that are priced to shrink but are set to grow. Leave it to others to make uncertainty work against them. They can buy stocks where growth expectations are already priced in and a failure to meet expectations can cause the stocks to crash.

If you've been reading my articles regularly -- in addition to seeing returns of more than 100% far this year -- you know that I've been preparing for the wave of uplistings of unloved Chinese stocks for quite some time. Well, it's time to ring the bell, because we are in the middle of the madness.

While much attention is being paid to mergers and acquisitions and huge IPOs, I'm glad to focus on these stocks that are set for uplisting. They offer opportunities that are simply to great to pass up. For example, Oriental Paper(OPAI.OB) is conducting a 1-for-4 reverse split. This is great news, because this company is priced in for shrinking but it's set to grow. I pointed out this stock when it was trading at 22 cents. After the reverse split, it will likely fetch $10-plus, and I think it could even go to $20 or more. My target exchange for uplisting: Amex.

Elsewhere, take a look at MystarU.com(MYST.OB). This company is undergoing a ton of changes, including a 1-for-100 reverse stock split, a spinoff of noncore assets, an acquisition, a name change -- to Subaye -- and an increase in authorized shares. These are ways to turn a penny stock into a $10-plus stock. I suspect that this one will be looking to uplist by the end of the year, and my target is Nasdaq. The fear here is the dilution of common equity, and this fear is justified. But I think it is offset by explosive growth potential on the cheap. Pay a little, get a lot. On Monday the stock saw its highest volume in two years. This name won't be undiscovered for much longer.