Rick Pendergraft's Avatar
Rick Pendergraft
published in Blogs
Jun 02, 2020
Chinese Internet Firms are in the Spotlight as Trade Rhetoric Heats Up

Chinese Internet Firms are in the Spotlight as Trade Rhetoric Heats Up

There is an ongoing competition between China and the United States for worldwide economic supremacy. One particularly fertile battleground in the competition is technology. Data indicates that the gap in venture capital funding between Chinese and American companies is closing fast. China has used grand ambitions and careful government planning to create powerful, profitable companies uniquely positioned to take advantage of their market – and beyond.

Home to the largest internet and mobile markets in the world, Chinese companies tend to be more transaction-based than their Western counterparts. Many of these companies have become skilled at leveraging rapid adoption rates and a tech-savvy population to sell virtual and physical goods. E-commerce, gaming, and social network businesses are particularly successful – big names include Alibaba, Weibo, and Tencent – but the space is diverse. Some companies, like Huami, create wearable devices; others, like Baidu, traffic in A.I. and internet services (including the largest search engine in China).

While the trade wars and questions about Chinese technology companies’ ability to innovate remain, many economic experts see a positive future, driven in part by the impending arrival of 5G technology. Whether this is the impetus for the next great wave of Chinese tech companies remains to be seen, but its big names are proven successes, making them accessible, enticing options for investors.

In addition to the increased attention due to the barbs being traded between Beijing and Washington, a couple of members of the group are set to report earnings this week. Autohome (NYSE: ATHM) is set to report on June 1 and Baozun (Nasdaq: BZUN) is set to report on June 2. Both companies are expected to see earnings decline slightly compared to last year.

Looking at the fundamental ratings for the companies in the industry, the Tickeron screener shows that NetEase (Nasdaq: NTES) is the highest rated among the 18 stocks in the group. It scores very highly in its Valuation Rating, Profit vs. Risk Rating, and the SMR Rating. It also scores well in the Seasonality Rating. The only area where it is below average is in the PE Growth Rating.

The other four companies in the top five for fundamental ratings are JOYY Inc. (Nasdaq: YY), JD.Com (Nasdaq: JD), Bitauto Holdings (Nasdaq: BITA), and Alibaba (NYSE: BABA).

The technical ratings show three of the same companies in the top five for their various ratings—Alibaba, NetEase, and Bitauto Holdings. The top company for its overall technical ratings is Vipshop Holdings (Nasdaq: VIPS). The stock scores well in its Stochastic indicators, MACD, Momentum, and the Moving Averages. The only area where the stock doesn’t score well is with the AROON indicator. Alibaba scores highly in four out of five as well with its only subpar rating being from the MACD.

NetEase scores highly in four of the seven categories with one neutral reading and two below average ratings. Tencent Music Entertainment Group (NYSE: TME) is the second company that makes it in to the top five, but wasn’t in the top five in the fundamental ratings. All five of the companies score highly in at least four technical categories.

With political tensions high between China and the United States, all Chinese stocks that trade on U.S. exchanges could be volatile in the coming months. There are also concerns about accounting practices after the recent events at Luckin Coffee (Nasdaq: LK) raised red flags about the filing requirements of foreign companies on U.S. exchanges.

These stocks could be volatile in the coming months and quarters. If investors try to stick with the stocks that the screener ranks as the highest ones, both for fundamental and technical analysis, they should fare better than investing in the stocks that don’t rank as highly.

Related Tickers: ATHM
Related Portfolios: CHINA COMPANIES
Sergey Savastiouk's Avatar
Sergey Savastiouk
published in Blogs
Mar 07, 2021
4 Tricks Hedge Funds Use to Get Ahead

4 Tricks Hedge Funds Use to Get Ahead

If the stock market were Major League Baseball, hedge funds and institutional investors would be the pros on championship teams while everyday self-directed investors (SDIs) are the benchwarmers in the minors.It’s how they get ahead, and it’s why 90% of SDIs lose money trying to play (invest and trade) in the major leagues. The 4 tricks we discuss below are rooted in one common theme: they all use Artificial Intelligence and algorithms to generate data and ideas.
John Jacques's Avatar
John Jacques
published in Blogs
Mar 22, 2018
A.I. Stock Market Predictions: Head & Shoulders

A.I. Stock Market Predictions: Head & Shoulders

Statistics for the Head-and-Shoulders Bottom Pattern The days where only hedge funds used algorithms to trade stocks are officially over. Now retail investors can use Artificial Intelligence (A.I.  Here’s an example of the algorithm in action: Late last year, Tickeron’s A.I.
Sergey Savastiouk's Avatar
Sergey Savastiouk
published in Blogs
Jul 10, 2020
3 Stocks to Buy if Coronavirus Second Wave Hits

3 Stocks to Buy if Coronavirus Second Wave Hits

By analyzing market trends from the first wave, you can predict behavior for the second. Technology stocks have performed at historic levels this year, but the market is severely overbought.To compensate for that, look at performance during Q1 and Q2, the height of global Covid shutdowns.
Edward Flores's Avatar
Edward Flores
published in Blogs
Feb 06, 2021
How to Become the Millionaire Next Door

How to Become the Millionaire Next Door

The Golden Gate Bridge is always a fixture of these walks too, one of man's most beautiful creations.  As we were walking, at one point she turned to me and said, "Man, I'll never have a million dollars."" My girlfriend is 27 years old and works as a graphic designer, making about $75,000 a year.
Alla Petriaieva's Avatar
Alla Petriaieva
published in Blogs
Feb 23, 2021
Is Ethereum’s Bomb about to Explode?

Is Ethereum’s Bomb about to Explode?

Ethereum’s software is set for an update in October.Until it is finished, participants in the Ethereum blockchain must determine how to delay the difficulty bomb – code that necessitates a steadily increasing amount of computer power to mine blocks and unlock rewards – that is already in place.
Sergey Savastiouk's Avatar
Sergey Savastiouk
published in Blogs
Aug 07, 2018
When Is the Next Recession Coming?

When Is the Next Recession Coming?

However, we also know that economists predicted 22 recessions out of 11 that took place since 1945. Are there real recession signs we should watch for?Indeed, the answer is yes, and here are a few very important ones: The first one is almost obvious and known to everyone – it is the Fed.
Abhoy Sarkar's Avatar
Abhoy Sarkar
published in Blogs
May 22, 2020
Central banks have been buying $2.4 billion in assets every hour for the past two months

Central banks have been buying $2.4 billion in assets every hour for the past two months

Some $17.8 billion has been poured into  bond markets over the past week, the biggest move in more than three months.Around $3.5 billion has been invested into gold, the second largest on record. 
Rick Pendergraft's Avatar
Rick Pendergraft
published in Blogs
Feb 07, 2021
Mid-January Short Interest Report Shows 8 Stocks with Good Fundamentals and High Short Interest
Sergey Savastiouk's Avatar
Sergey Savastiouk
published in Blogs
Mar 10, 2021
How to Start Trading Penny Stocks

How to Start Trading Penny Stocks

Penny stocks have long been marginalized within the professional investment community, oftentimes being painted with a broad brush of simply being “too risky.” Leonardo DiCaprio’s depiction of the penny stock peddling conman, Jordan Belfort, in the Wolf of Wall Street certainly didn’t help.Here are four reasons to start trading them now. Reason #1: Let’s State the Obvious -- Penny Stocks are Cheap A single share of Apple Inc. costs over $350.
Abhoy Sarkar's Avatar
Abhoy Sarkar
published in Blogs
May 08, 2020
US unemployment rate jumps to 14.7%, the highest in series history

US unemployment rate jumps to 14.7%, the highest in series history

The U.S. economy’s employment fell by -20.5 million in April. The coronavirus crisis led to unemployment rate soaring to 14.7% in the U.S, the highest rate in the Bureau of Labor Statistics-tracked series history that goes back to 1948. However, the figures were better compared to several economists'/analysts' forecasts of 22 million job losses and 16% unemployment rate.  Another unemployment measure that includes those who have stopped looking for work as well as those holding part-time jobs for economic reasons also touched an all-time high of 22.8%.