China Growth Stocks

[Rames]

CGS (ECSC) INDEX REVISION

It's time now for the quarterly revision of our list of CGS Board AMIGOS

Going with bogus07's original post that started it all:

TEN AMIGOS for the NEXT 12 MONTHS

Post your list of (up to) 10 China Growth Stocks as your personal top picks for the next twelve months (hold for a year, no quick in and outs). Please reply ONLY to this post, so I can find all your submissions easily.

Deadline is next Friday, April 9. I will then rebalance our index on the weekend of April 10/11 with April 9 closing prices.

It would be great if you take the time to post a few comments with your picks, I'm sure most people here would appreciate this, especially if you are not a frequent poster here and people might not know you. Anyone reading this post with an iHub account as of today (April 3) is welcome to submit their picks.

Some answers to questions that might come up:

- ECSC stands for Emerging China Small Caps, the previous name of this board
- Revision is quarterly, always the first full week after quarterly earnings deadlines (First Week of April, Last Week of May, Last Week of August, Last Week of November)
- The picks you submit will not be ranked, each stock submitted gets one point, those 10 stocks with the most points will make the revised index
- You can submit less than 10 stocks. If you can't think of more than a few that will do well in the next 12 months then don't submit the full 10 names
- If you submit more than 10 stocks I will just take the first 10 tickers in your post and ignore the rest
- The final index will be composed of 10-15 stocks, it depends on where it makes sense to do a cut

And now some facts about the CGS (ECSC) Index:

Since inception on November 27, 2009, 12 of the 15 index stocks are up. Average return is 40.11% so our picks have significantly outperformed all comparables/references as the S&P 500 (+8%), HAO Claymore China Small Cap ETF (+11%) and Hang Seng and Shanghai Composite which are both up less than 2% since late November.

However, and that's a big "but", the CGS (ECSC) Index is down for the year 2010 so far (-1.5%). This is caused by a huge drop last Thursday when then index lost a whopping 4% as many of the picks (BSPM, CCME, TSTC, LTUS) were sold off hard. Our picks were underperforming the general US markets (SPX, NASDAQ) and also the average US-listed China Small Cap stock.

The big winners in the China space so far this year have been profitable OTC-listed stocks. I'm tracking them as a group of the 40 OTC stocks with 2 profitable recent quarters and highest market capitalization, and this group of stocks is up more than 24% YTD.
http://www.fixyou.co.uk/index_china_otc.php

For 2010 YTD, 11 of the 15 CGS (ECSC) Index stocks are down, most dramatically CKGT, CPQQ, CSGH and TSTC. Without the huge gains of LLEN (90%) the index would be much deeper in the red.

Here are some charts and links:


http://www.fixyou.co.uk/screen_ecsc.php

Chart since Nov 27, 2009


2010 Chart

http://www.fixyou.co.uk/screen_ecsc2.php