Posted
Apr 24 2008, 10:54 PM
by
Dave Dispennette
Foreign Stocks
HMIN @ $21.99 (Home Inns & Hotels) operates 134 hotels with 16,162 rooms and 48 hotels under development covering 50 cities throughout China. Revenues have increased 71%, 75%, 74% and 96% during the last four quarters. earnings are expected to grow 269% this year and another 58% in 2009 to 0.93 cents a share. We originally recommended this stock on 10/29/06 at $25 and watched it double in a few months to $50. We are revisiting it here and will add to position on any weakness that brings us down to $19. We will set our stop loss at $17.75.
JRJC @ $18.45 (China Finance Online) is a Chinese provider of subscription-based online financial data of China's listed companies through www.chinafinanceonline.com. Revenues have increased 184%, 289%, 322% and 252% during the last four quarters. Earnings have accelerated 100%, 267%, 275% and 999% during the same time frame and are expected to grow 47% this year and another 78% in 2009 to $1.39 a share. We originally recommended this stock on 7/13/06 at $5.62 and watched it run as high as $47 in a little more than a year. Since then it has fallen as low as $10 and appears to be trying to recapture its 200 day moving average. We will establish half a position here and enter the remaining half on a pull back to $16 with a stop loss set at $15.
Shorts
IT looks like the rotation out of these Chemical and Fertilizer plays might finally be here. We are short POT and CF, but feel MOS and AGU have the same downside. If you took our advice two nights ago and shorted them, you should tighten up your stops now that they have all fallen $15 to $20.
This newsletter has been sent to you for informative purposes only and in no event should be construed as a representation by The Stock Playbook or its employees as an offer to sell or solicitation of an offer to buy any securities. The factual information given is taken from sources we believe to be reliable, but is not guaranteed as to its accuracy or completeness. The opinions expressed should be given only such weight as opinions warrant. employees and/or family members may have a position in the securities mentioned and may make purchase and/or sales of such securities from time to time in the open market or otherwise Recipients of The Stock Playbook prohibited from, directly or indirectly, distributing, forwarding , plagiarizing or copying any part of this message without expressed written consent from The Stock Playbook. Some content may have been based, at least in part, on material gathered from Investor's Business Daily ® and/or YAHOO!®