China-Based Beaten-Down Stocks
Finally, it's a smart move for investors to start hunting around the China-based equities for short-squeeze and rebound opportunities since so many of these names have been absolutely annihilated over the past couple of weeks. Some stocks I would consider here are Sina (SINA), Baidu.com (BIDU), Sohu.com (SOHU), Yoku.com (YOKU), Changeyou.com (CYOU) and E-Commerce China Dangdang (DANG).
Sina and Sohu.com are two of the more heavily shorted China names, at 8.6% and 10.5%, respectively. That said, I think all of these could rebound sharply since almost every China-based stock is hated by the market right now. Understand that this is a trading call and not a call to invest in these longer-term, since China still holds a lot of risk at current levels.To see more beaten-down and heavily shorted rebound plays, including A123 Systems (AONE), Tellabs (TLAB) and Clean Energy Fuels (CLNE), check out the Rebound Potential Plays portfolio on Stockpickr. -- Written by Roberto Pedone in Winderemere, Fla.
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