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Three Cheap China Stocks to Buy Now: GA, COGO, EJ

Posted Sep 01, 2008 10:00am EDT by Aaron Task in Investing, Electronics, Gaming
As bullish as he is on the U.S. stock market (click here for details), Formula Capital's James Altucher is even more effusive about prospects for Chinese stocks: "I have never seen a market this cheap in an economy growing 8-10% a year," says the fund of fund investor and author.

The Shanghai Index has fallen as much as 60% from its October peak but that is an opportunity, not a sign that the China growth story is over, he says. The growth of its middle class makes investing in China akin to the PC market in the 1980s and 90s, when investors (almost) couldn't go wrong.

In the accompanying video, Altucher reveals his top China stock picks, which each have strong cash positions, no debt and trade at low P/E multiples: online game company Giant Interactive, cell phone manufacturer Cogo Group, and real estate agency E-House. (At the time of interview, Altucher had no position in stocks mentioned.)

22 Comments

Yahoo! Finance User
Yahoo! Finance User - Monday September 01, 2008 10:23AM EDT

I cannot imagine making any investment decision based on what this fruitcake has to say. Who in their right mind would pay any heed to this insane looking nerd yammering on about market rumors and superficial trends. C'mon Tech Ticker - get someone with some kind of believability on here!! Not this nerd-slob.

lise
lise - Monday September 01, 2008 10:27AM EDT

Altucher has it right and he could add many stocks to his buy list like,to name a few, wx, ned,fmcn,aob,stv, fuqi,jrjc,lft and most chinese solar companies.ALTUCHER is one of few persons to say the obviousness i.e.how a stock market like China can be the cheapest in the world with the healtiest growth and prospects for the next decades.A correction to the upside is coming soon and it will be BIG.

__A_YAHOO_USER__
__A_YAHOO_USER__ - Monday September 01, 2008 10:52AM EDT

Fundamental China sounds good,why not take some explosure....Anyhow the name of the game is to gain money not to gain sentiment business has no borderline.......

gao
gao - Monday September 01, 2008 11:26AM EDT

that fruitcake is a total crook. I happen to own both stocks at some point of time and profit handsomely. But don't buy them. GA they only have one game. ZT online. It tanked. The management forced to bring back the older version, which has a much lower monetarization rate. The managment squandered millions buying a stake in non-core websites. They have several similar social networks. I just don't see that investment could translate into cash flow in the next few years.

gao
gao - Monday September 01, 2008 11:30AM EDT

Speaking of EJ. The market is about to crash. Most of the smaller property developers are having cash flow problems. Look at their cash level yourself. It is on their balance sheet. Do me a favor and save your money. 100% growth down to 20% growth?! It is a matter of survival. I am confident that EJ will survive but come on, it is not going to make much money with the whole property industry going into cyclical bust.

gao
gao - Monday September 01, 2008 11:39AM EDT

Aaron, why you keep on inviting him? If he is that smart, why don't ask him some positions that he has actually put money in?

Yahoo! Finance User
Yahoo! Finance User - Monday September 01, 2008 01:05PM EDT

I say just keep shorting them chinese stock like GA, COGO, EJ but don't short CHL. Buy stock like NTES not some chump stock like GA!!

lise
lise - Monday September 01, 2008 01:21PM EDT

Some peoples think the end of the world is near because real estate market crashed in USA ( to convince yourselves of that ,just read all idiot posts on MWatch every day) . They cannot be more wrong and those who are having fun shorting Chinese stocks will seriously get burned .

AaronS
AaronS - Monday September 01, 2008 02:12PM EDT

EJ is a definite buy & just announced a stock buyback

richard
richard - Monday September 01, 2008 03:01PM EDT

EKOJ is a very promising up and coming company to say the least. Great innovations on recyling metals, precious/non-precious. High tech ready to use state of the art equipment, great for the environment and a steal at .03/share. Have seen this stock hit .22/.23 should be flying high soon...

Yuntang
Yuntang - Monday September 01, 2008 03:19PM EDT

EJ 's business is a broker for new house's sale and the new house market will be very bad for next year and EJ has invested in website business in 2007. EJ will do fine but never can go up again.The stock will go down more, around $5.

Yahoo! Finance User
Yahoo! Finance User - Monday September 01, 2008 07:56PM EDT

Who would buy China stocks? I was just over there for the Olympics and that country is the worst country I have ever been too. There are about 100,000 people that are rich and 2.9 billion people that are dirt poor. Talk about not spreading out the wealth. Don't buy stock to help out the rich.

Paul
Paul - Monday September 01, 2008 09:23PM EDT

Gaoshan2k Aaron has already asked this guy if he invests in his recommendations and he said, surprise surprise, "NO". Apparently,he just wants to make everyone else rich. It's like trusting a chef who never eats his own cooking. These guys are no different from car salesmen or real estate agents. They just want you to buy buy buy or at the very least don't sell. Now I have looked at all of the stocks this guy recommends and they certainly don't look expensive. In fact they are all near year lows. The Chinese are others have been dropping them like hot potatoes and you have to ask why. The world is heading into dark and dangerous times and China will be effected as much as anyone. I think this is a time to be very cautious.

Yahoo! Finance User
Yahoo! Finance User - Tuesday September 02, 2008 12:47AM EDT

Why would anyone want chinese stocks when they can own U.S. stocks. China have nice place like Shanghai, Hong Kong, Macau but to own chinese stock is a joke!! COGO, GA, EJ what is this geek thinking. Tell that chump to go home.

Networker
Networker - Tuesday September 02, 2008 02:53AM EDT

the seen int he market is not clear some thing very foggy is there those who have proper vison can get out of it , must analyse and look past history of the particular stok s to earn good.

- Tuesday September 02, 2008 05:38AM EDT

his books are a worthwhile read.

Xi
Xi - Tuesday September 02, 2008 08:48AM EDT

No.12 is a commie!

Sticky P
Sticky P - Tuesday September 02, 2008 09:15AM EDT

James Attucher - his hair is like Ian McCulloch from Echo and the bunnymen :)

Joe C
Joe C - Tuesday September 02, 2008 09:50AM EDT

GA LOL THEY dont know BOUT q3 BUT q4 LOOKS GOOD ?????? SOUNDS LIKE ANOTHER CROX !!!!!!!!!!!!!!!!!!!!!!! SAVE YOUR BUCKS AND RUN FROM THIS !!!!!!!!!!!!!!!!!

willy
willy - Tuesday September 02, 2008 10:11AM EDT

All of China is a buy so buy FXI. Just be investors and buy and hold and reinvest your dividends for the next decade and you will see your wealth compound. Common sense for the common man.

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