Chinese Ipos Already Too Hot?

Can Solar Stocks Continue Their Hot Streak?

SCTY Total Return Price Chart

NEW YORK (CNNMoney) After a long hiatus, Chinese companies have started to go public again. But the market may be getting too hot too fast. Of the eight companies that began trading on the Shenzhen Stock Exchange Tuesday, seven were halted twice after breaching the percentage gain limits adopted last year as part of China Securities Regulatory Commission’s trading reforms for new listings . Those thresholds, which first go into effect when a stock rises 32% and also caps a daily gain at a maximum of 44%, were designed to improve the initial public offering process and reduce speculative trading on new shares.

shenzhen stock exchange

Doubling again this year isn’t out of the question if they perform well operationally. High quality is winning We don’t know exactly where solar stocks are headed over the next year, but it’s reasonable to predict that high quality companies will continue to outperform low quality companies. Despite the incredible year solar had last year, LDK Solar and Suntech Power are essentially insolvent and won’t survive long-term. On the flip side, SolarCity, SunPower, and First Solar are thriving and lowering costs. Long-term, that will keep them competitive in solar and should help push their stocks higher.

Hot Stocks: Fresh Healthy Vending International Inc(OTCBB:VEND), Axa SA , International Stem Cell Corp(OTCMKTS:ISCO), Deutsche Telekom AG

The stock had earlier jumped as much as 72 sen to RM4.20. Yesterday, SAB rose 41 sen or 13% to RM3.48 after Public Investment Bank Bhd said SAB is undervalued. This is because SAB’s share price has not factored in the group’s plantation land in Kota Kemuning, Selangor Public Investment said SAB which is also in the healthcare and logistics business, could be worth at least RM1 billion or RM7.77 a share. This compares with SAB’s latest reported book value of RM3.34 per share. Today, TA Securities Holdings Bhd said in a note that SAB is among the research firm’s top 20 break-out stocks.

Hot Stock: Southern Acids top gainer, soars 21% on undervaluation

The total number of shares changed hands during the day was 25.30 million. After opening at $2.87, the stock hit as high as $3.09. However, it traded between $0.17 and $4.05 over the last twelve months. Fresh Healthy Vending International, Inc., a franchise development company, operates vending machines.


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