Thursday, April 15, 2010

Where Do We Go From Here?

By Eric Jackson
RealMoney Contributor

4/15/2010 9:15 AM EDT
Click here for more stories by Eric Jackson

Earlier this week, I reviewed my long picks and macro predictions from the start of the year. They did pretty well as a group, assuming you held them through the quarter: up 22% through earlier in the week from the publication date.

This is my updated list for the current quarter. I included only China-based U.S.-listed stocks last time, this being a focus of mine. For balance, I'm presenting five China and five non-China picks. Here they are:

Top 5 China Picks

Orient Paper (ONP - commentary - Trade Now): Iprofiled the paper-printing company a couple of weeks ago. This is my top China pick at the moment. It will be interesting to see the company's first-quarter results and possible analyst upgrades or research initiation.

Puda Coal (PUDA - commentary - Trade Now): This is a holdover from my initial list. It has performed well in the first quarter and still looks appealing. It is still transitioning from a coking-coal company to owning and operating thermal-coal mines in China's Shanxi province. The market hasn't yet digested a local government move to encourage consolidation of the many small mines operating in this coal-rich province. As one of the beneficiaries of this policy, Puda has already acquired a handful of mines, but more should develop this year.

China-Biotics (CHBT - commentary - Trade Now): This is a new position. I met with its new chief financial officer, Travis Cai, in Shanghai a couple of weeks ago, but I hadn't had the opportunity to write up my notes for RealMoney(although I will, soon). This probiotics company sells to three key markets: Retail, through a chain of shops, mostly in Shanghai, that sell health supplements; dairy, supplying additives to China-based milk and yogurt producers; and feed, via health-supplement additives for livestock feed. It has more than $150 million in cash from a recent secondary issue. It has opened a new production facility, and could easily open a second one. It also has strong opportunities in the dairy and feed segments.


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