This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Three U.S.- Listed China Stocks to Watch

Editor's note: The following article was written by Maj Soueidan, the founder of The Markets Edge Hedge Fund and GeoInvesting. Soueidan's "GeoTeam" of researchers and analysts uses fundamental criteria to analyze micro- and small-cap stocks.

NEW YORK ( TheStreet) -- The avalanche of U.S.-listed Chinese stocks with the potential for above-average returns shows no sign of stopping.

Three companies that we are currently tracking are China MediaExpress (TMI), Winner Medical Group (WWIN) and China Yida Holding (CNDH).

China MediaExpress

Last Thursday, TMI Entertainment & Media approved its business combination with China MediaExpress Holdings. China MediaExpress operates the largest television advertising network on intercity express buses in China and generates revenue by selling ads on its network of television displays installed on express buses.

This is exciting for two reasons. First, on June 25, we coded TMI Entertainment as a bargain at $7.91. We were somewhat leery of doing so because the consummation of a merger was not yet a done deal.

However, based on the company's aggressive financial performance targets and clean balance sheet, we felt that TMI Entertainment offered a nice opportunity to participate in a hot China industry sector. Based on financial targets, set by the company's management, that call for net income of $42 million in 2009, $83.5 million in 2010 and $130 million in 2011, we believe investors may find value in TMI shares.

Second, the approval of the business combination justified the warrant arbitrage strategy we highlighted on Sept. 1, 2009.

The warrants saw an increase in price from 16 cents to $1.81 in roughly six weeks from our first mention. Ironically, as of Monday's close, TMI ended the day at $8.02, meaning that the warrants were still mispriced with an intrinsic value of $2.52 (warrant strike price is $5.50).
1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $118.88 0.96%
FB $105.74 -1.13%
GOOG $748.28 -1.02%
TSLA $218.25 0.23%
YHOO $32.96 -1.20%


Chart of I:DJI
DOW 17,812.19 +19.51 0.11%
S&P 500 2,089.14 +2.55 0.12%
NASDAQ 5,102.8080 +0.33 0.01%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs