China Investor King's approach is to invest in small- and microcap companies that are in the early stage of getting attention. The last months the China space is over flooded with negative reports from short sellers and other entities. Because markets have a tendency to be irrational, extreme investor behavior has created conditions where a stock's price is most likely to be significantly different than its fair value.
This will not last forever. By patiently accumulating undervalued companies with a view to long-term ownership when their valuations are depressed because of investor's inability to look beyond near-term, China Investor King believes you can produce above-average returns over time.
Stocks like Renhuang Pharmaceuticals (CBP), Lotus Pharmaceuticals (LTUS), Weikang Bio-Tech (WKBT), China Agriculture Business (CHBU) and a lot more of US-listed China stocks will reach realistic valuations in the future.
Do your Due Diligence when you invest and look for businesses that have proven and consistent operating histories.
Sunday, September 26, 2010
Subscribe to:
Post Comments (Atom)
Posts
No comments:
Post a Comment