China Growth Stocks

[ratobranco]

Evidence of how pathetic this space is

I went to do a value screen to start building a shopping list, as I think markets are about to take a plunge and I want to be ready in terms of what to buy (my target is to start buying at SP 950, which I think will be a good entry point for investors with a longer term mindset, though we will probably still go lower).

Almost every single company that came back on the deep value screen was some China RTO piece of crap. The screen was literally infested with names like GURE and BORN and Guanwei Recylcing. It was alphabetized, so the C section was nothing but China ____ China ____ China ____. Uggh. Just disgusting.

Obviously, the screen doesn't know that these names are frauds, so I was in somewhat of a bind. How do I look for low PE, high ROIC, high growth stocks and yet keep this fraudulent garbage out of my screens?

Then I had a moment of brilliance. Just add the requirement that the dividend yield be greater than zero.

Bingo. Problem solved. Not a single China RTO name comes up. There were like 85 China RTO names on the other screen. (Not sure why DEER, KEYP and AERL didn't come up, but I won't argue with that )