Many China small cap stocks are ripping higher, finally catching fire on the back of a Shanghai major rally (10%+ lately). Large caps like Baidu Inc (NASDAQ:BIDU) and Vipshop Holdings Ltd (NYSE:VIPS) have already rallied insane amounts in 2014, however, until recently, the small cap China ADR's have lagged, staying near/at their 52 week lows. That is now changing. Look at stocks like China Finance Online Co. (NASDAQ:JRJC) and China Green Agriculture, Inc (NYSE:CGA). China Finance Online is up more than 100% in the last three trading days.
While these mentioned above have rallied too much to be a buy at this point, there are plenty of solid, profitable Chinese small caps that are still trading at or near 52 week lows. Be on high alert. Do research and find those trading on the NASDAQ or NYSE that are profitable and at their recent lows. They may just be the next mega mover.
Gareth Soloway
Chief Market Strategist
www.InTheMoneyStocks.com
