This Day On The Street
Continue to site right-arrow
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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

China Stocks for the Holidays, Part 3

Stocks in this article: TSTC CHOP ZSTN

This is the last part of my series on China stock picks for next year. (Here's part 1 and part 2.)

One of my core beliefs is that as companies grow the tendency is that more people own them. In other words, more people own larger companies. Going along with this philosophy, as companies grow they get more shareholders. I feel that the more shareholders a company has the more likely it will trade around what it is worth and shareholders may experience the winner's curse.

The way to take advantage of this is to own small companies priced to be small companies that are on the path to becoming larger companies. The same applies to exchanges. The larger the exchange, the more likely the company is closer to intrinsic value. I'll illustrate briefly three potential values using this framework.

Starting on the Pink Sheets, which is the lowest of the lows, is Sino Agro Foods. The rumor is that the company is going to be paying a dividend and uplisting to the OTC. Shares are currently selling at less than book value, and I don't find them excessively cheap by my absurd standards, but nonetheless they are worth more.

You might be interested in the company's January 2010 presentation, which is out this week. Click here to take a look. One thing that might interest you is the intent to pay a dividend. You can barely find that in the OTC, not to mention the Pinks. This suggests that Sino means business.

China Armco (CNAM.OB) is on the OTC, but in my opinion, not for long; it's moving up. This is my "grand slam" breakfast meal and part of my daily diet. If you are able to crunch numbers on the back of a napkin or envelope, I would recommend doing so here. Keep it, you might just find yourself stopping by the framing store a couple years from now or maybe this next year looking to frame your first grand slam as well.

1 of 2

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs