China Growth Stocks

[rru2s]

LLEN: if today had been the only day down, I'd agree that it is due to the announcement of a 2011 freeze, but since the downdraft started 2 days before earnings, more likely this is just the collective behavior of many investors' trading behavior around the time of earnings release, which way too common in all China stocks right now. They are all taking profits after the recent run at the beginning of the peak coal seasons which had the advantage of being right before earnings, and now they are all thinking that next earnings is pretty far off and without a new catalyst the macro effects in China will push PPS down just a bit. I don't have any doubts that we wil exceed the previous highs but depending on the macro effects it might not runup again until a month before next earnings.