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!

Top China Stocks: Under the Radar

Stocks in this article: CSKI JST ASIA

BOSTON ( TheStreet) -- The People's Republic of China, despite talk of a bubble, still offers investment opportunities superior to those in many developed nations, including the U.S. Here are five U.S.-listed China small-caps with outstanding prospects and "buy" ratings.

5. China Automotive Systems (CAAS) makes power-steering systems and car components.

Numbers: Third-quarter profit more than tripled to $8.6 million, or 28 cents a share, as revenue increased 75% to $65 million. The operating margin expanded from 9.1% to 14%. The company holds $55 million of cash and $60 million of debt.

Stock: China Automotive Systems has advanced 669% in the past year, trouncing U.S. benchmarks. The stock trades at a price-to-projected-earnings ratio of 27, a 31% discount to the industry average. Its PEG ratio, a measure of value relative to growth, is low at 0.6. A PEG ratio below 1 implies cheap shares.

Catalyst: China overtook the U.S. in 2009 to become the world's largest car market. Last year, its domestic industry grew by an estimated 50%. China is spurring growth by offering consumer incentives. Domestic players enjoy preferential treatment.

Consensus: Of five analysts surveyed by Bloomberg, two recommend buying the shares and the remainder advise holding. During the past three years, the stock has gained 37% annually, on average. It ranks in the top 8% of TheStreet's coverage universe.

1 of 5

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 17,959.44 +154.64 0.87%
S&P 500 2,078.54 +7.89 0.38%
NASDAQ 4,781.4240 +16.0440 0.34%

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