Replies to post #21226 on China Growth Stocks

[CSykes]

Good post..

..and I have something else to add..

For me it is a moral issue. I'm not putting my money into one single American company until they figure out excessive greed is not acceptable.

What is the difference between an American and China executive of a $100M a year company? The American will make $2M+ a year and his China counterpart may only make $200K a yer..

Until that changes, I'm putting my money in China only because they seem to truly be working to build business... not simply rape everything for profit.

http://money.cnn.com/2009/12/30/news/economy/bonuses.fortune/index.htm?cnn=yes

[morokoy]

I think you may be underestimating your trading velocity. Chances are, there may be a currency revaluation, even a 0.68RMB (small, 10%), which would increase EPS, which in turn may drive more investors into the ECSC arena, giving us a significant multiplier effect.

[Traderfan]

Burp, I kinda know very well what you are talking about in this posting. Been there done that. Made a small fortune back in 98 and 99 and lost it all a year later..... :-)

The clear difference however is that back then (as you already mentioned) many were investing in pipe dreams, mostly companies which grew like hell but most of the times didn't even have a PE ratio because they still lost money but nobody cared about it until someday in april in 2000..... LOL

To be honest I'm not sure what the overall markets are going to do in 2010, will of course depend heavily on the overall economy situation around the world. If the general markets somehow hold up at least I think we will do fine with the right stocks.

I would be more than thrilled if I could double my money in 2010. That would mean I will make the same dollar amount as I did in 2009 due to the increased cash now. That would be more than great but I know that this probably won't be too easy next year. We will see. 2009 was just great.

[Harleyman]

Weel said burp, I echo your sentiments for this board. I was investing in China stocks, CHID and PUDZ (now NEWN and PUDA) this past year and stumbled across this board in October. It is definitely one of, if not the best boards available. I have gained much insight from so many on this board. Unfortunately, I've probably taken more than I've given to the board, but I am grateful to you all none the less. May your fortunes multiply in 2010, God Bless you all!

[grass7319]

Burp,

Congrats on fabulous, fantastic gains in '09!

Could you spell out some of your choices for 2010, so some of the

less talented, (myself particularly), can do some DD on your favs ?

I am not a trader by profession, but think there must be some good buys that one could hold for at least part of the year.

If anyone else wishes to chime in, please feel free!

Many thanks,
Pam

[unpredictable]

I think a word of caution should be introduced in regards to investing in the new year. The single most important investment principal is preservation of capital after an inordinate rise in the stock market. Especially with the malaise in the European and US economies. One (me) could make the argument that the US market has recovered primarily because MM and CD's are paying zip and the stock market is the only game in town (everyone is afraid of the bond market with the exploding US total debt of a little under 55 Trillion dollars.)

My first year of investment was 1966 and the Dow reached 995, then it took 18 years to break 1000, with a 45% drop in the 1970-74 recession. That's 18 years of zero return, if you invested in the 30 bluest chips in the US.

My point is shooting for a 300% return should be left to the experts and smaller investors should employ some caution in their investment disciplines. I do agree China small caps are the place to be. However, my opinion is the US market will sell off the beginning of the new year and money will be pulled out of the market, affecting all stocks, ESCS included.

Again, my opinionthe new investors with a small portfolio should attempt modest returns so they have investment dollars to re-invest if the market turns south.

[twelvebuttons]

burp,
Hi. I have a question...everyone see the same stellar ECSC returns you do ,I fear they will pile into your world and the trade will get very very crowded..it may not be as easy this year..how would that change your trading? Also why does PEG matter if you're only swing or day trading? You don't hold the stocks long enough for earnings to matter - thanks! great board..12buttons