Shares of this energy sector company's stock reached a new high, partly as a result of some big news coming from the US Department of Energy, writes MoneyShow's Jim Jubak, also of Jubak's Picks.
Yesterday, September 12, shares of Cheniere Energy (LNG) hit a new 52-week high of $33.76. As of the close, they'd dropped back slightly to $33.10. That still puts the stock up 18.5% from its August 30 close.
A big part of that is Wednesday's news that the US Department of Energy had approved a permit for Dominion Resources (D) to export liquefied natural gas from an existing liquefied natural gas import terminal in Maryland.
It's unusual, I grant you, for a company's stock to rise on news that a competitor has received approval to enter the market. And it's even more unusual when that company's stock rises more on the approval than the competitor's does.
But it actually makes sense here. The permit for Dominion Resources is the fourth liquefied natural gas permit that the Department of Energy has approved (and the third this year). Cheniere's Sabine Pass export terminal, scheduled to begin exports in 2015, was the first plant to win Department of Energy approval. As the first company to begin exports from the United States, Cheniere will have the ability to secure a major portion of the price difference between cheap US natural gas ($3.34 per million BTUs) and the price of liquefied natural gas exports as landed in Japan ($15.50 per million BTUs), India ($13.32), or China ($14.95). Dominion's terminal isn't projected to begin exports until 2017, so it certainly won't cut into excess first-mover profits at Cheniere. (Alert for income investors: Dominion has said it will form a master limited partnership that hold its natural gas assets-the Maryland terminal and natural gas pipelines-next year.)
Top Building Product Companies To Own For 2015: AsiaInfo-Linkage Inc.(ASIA)
AsiaInfo-Linkage, Inc. provides telecommunications software solutions and information technology (IT) products and services to telecommunications carriers and other enterprises in the People?s Republic of China. The company offers business and operation support systems product suites, including OpenBilling, a billing solution for telecommunications operators; OpenCRM, a CRM solution suite for telecommunications operators; OpenBOSS, a carrier-class business operation support system solution; OpenBI, a carrier-class operating analysis and decision support system platform; OpenPRM, a system that calculates, manages, and reconciles payment for intercarrier network access. It also provides network management solutions comprising NetXpert, a data and Internet protocol network management solution; and OpenXpert, an integrated telecommunications network management system. In addition, the company offers service applications products, such as Mail Center, an online messaging softwa re; Spam Patrol software for real time anti-spam control; and Net Disk, a network hard disk product, which facilitates Internet-based file transfer, sharing, and management, as well as supports other functions, such as data processing of short message folders and synchronization of mobile devices. Its service applications products also include Internet Short Messaging Gateway, a business support platform for value-added short messaging services; and Device Management Platform that enables mobile operators to manage various mobile devices and perform remote mobile device management, such as remote diagnosis and parameter setup. In addition, it offers software enhancement and maintenance, system integration, and other value-added IT consulting and planning services. The company was formerly known as AsiaInfo Holdings, Inc. and changed its name to AsiaInfo-Linkage, Inc. in July 2010. AsiaInfo-Linkage, Inc. was founded in 1993 and is headquartered in Beijing, the People?s Republ ic of China.
Advisors' Opinion:- [By Bloomberg News]
��he prospects of Chinese equities are positive for the long-term, but near-term there are some execution risks with regard to implementing reforms,��said Teresa Chow, a Hong Kong-based money manager who helps oversee about $1.5 billion at RBC Investment (Asia) Ltd. ��ainland investors seem to have more reasonable expectations.��
10 Best China Stocks To Buy For 2014: Bona Film Group Limited(BONA)
Bona Film Group Limited distributes films in the People?s Republic of China. It distributes films to movie theaters, as well as to non-theatrical distribution channels, including DVD and Blu-ray and other home video products; Internet and digital distribution; in-flight entertainment; and cable, satellite, and broadcast televisions. The company also invests in the production of Chinese and Hong Kong films in order to obtain the distribution rights for movie theaters and non-theatrical channels. In addition, Bona Film Group operates six movie theaters in five cities of the People?s Republic of China; operates a talent agency business that represents artists; and involves in film advertising and television production businesses. The company was founded in 2003 and is headquartered in Beijing, the People?s Republic of China.
Advisors' Opinion:- [By Seth Jayson]
Calling all cash flows
When you are trying to buy the market's best stocks, it's worth checking up on your companies' free cash flow once a quarter or so, to see whether it bears any relationship to the net income in the headlines. That's what we do with this series. Today, we're checking in on Bona Film Group (Nasdaq: BONA ) , whose recent revenue and earnings are plotted below.
10 Best China Stocks To Buy For 2014: Sina Corporation(SINA)
SINA Corporation provides online media and mobile value-added services (MVAS) in the People?s Republic of China. It provides advertising, non-advertising, and free services through SINA.com, Weibo.com, and SINA Mobile. SINA.com offers free interest-based channels that provide region-focused format and content, including news, sports, automobile-related news, finance, entertainment, luxury, technology, digital, tools, collectibles, video, music, and wireless application protocol, as well as interactive platform for fashion-conscious users to share comments and ideas on a range of topics, such as health, cosmetics, and beauty. The company's microblogging platform, Weibo.com, enables its users to follow the hottest topics being discussed online, as well as discussions related to people they know. Weibo accounts consist of celebrities, commercial enterprises, government entities, and grass root Internet users. Its SINA Mobile service allows users to receive news and informatio n, download ring tones, mobile games and pictures, and participate in dating and friendship communities. The company also offers SINA Game, which serves as an interactive platform that provides users with downloads and gateway access to popular online games; SINA eReading, a shop for book reviews; SINA.net, an enterprise solutions platform to assist businesses and government bodies; and SINA Mall, an online shopping Website. In addition, it provides a platform for Chinese bloggers; photo-sharing platform; free email, VIP mail, and corporate email for enterprise users; audio and video-based instant messaging tools; proprietary search technology; and classified advertising services, as well as hosts topic-specific discussion forums in Chinese language; and creates user-maintained and supported online communities. The company has strategic cooperation agreement with China Unicom (Hong Kong) Limited. SINA Corporation was founded in 1997 and is headquartered in Shanghai, the Peop le?s Republic of China.
Advisors' Opinion:- [By Anna Prior]
Chinese Internet company Sina Corp.(SINA) said it was hit by a $815,000 fine and received notices from the government that certain licenses would be revoked over “unhealthy and indecent content.” The company separately said it expects first-quarter revenue and adjusted per-share earnings that topped analysts’ expectations. Shares fell 3.4% premarket.
- [By Michael Cintolo]
In addition, Sina Corp. (SINA) is one of the most successful Internet portals in China. And its unit, Weibo, a microblogging service, is at the top of Chinese social media.
10 Best China Stocks To Buy For 2014: New Oriental Education & Technology Group Inc.(EDU)
New Oriental Education & Technology Group Inc. provides private educational services primarily in the People?s Republic of China. It offers a range of educational programs, services, and products consisting primarily of English and other foreign language training; test preparation courses for admissions and assessment tests; primary and secondary school education; development and distribution of educational content; software and other technology; and online education. The company?s language training courses primarily consist of various types of English language training courses, and other foreign languages, including German, Japanese, French, Korean, and Spanish. It offers test preparation courses for language and entrance exams used by educational institutions in the United States, the People?s Republic of China, and commonwealth countries. The company also operates primary and secondary schools in Yangzhou. In addition, New Oriental Education & Technology Group Inc. deve lops and edits content for educational materials for language training and test preparation, such as books, software, CD-ROMs, magazines, and other periodicals. It distributes these materials through various distribution channels consisting of own classrooms and bookstores, as well as third-party distributors. Further, the company offers various online education programs on its Web site, koolearn.com. Additionally, it provides consulting services to help students through the application and admission process for overseas educational institutions, as well as post-secondary educational programs to help students seek career opportunities; and operates two pre-schools. The company offers educational services under the ?New Oriental? brand name. As of May 31, 2010, it offered education programs, services, and products through a network of 48 schools, 319 learning centers, and 25 bookstores. The company was founded in 1993 and is headquartered in Beijing, the People?s Republic of China.
Advisors' Opinion:- [By Jake L'Ecuyer]
Equities Trading DOWN
Shares of New Oriental Education & Technology Group (NYSE: EDU) were 8.55 percent to $23.76 after the company reported FQ3 results. New Oriental's quarterly net income surged 50.2% y/y to US$42.1 million versus US$28.0 million. - [By Belinda Cao]
New Oriental Education & Technology Group Inc. (EDU), China�� largest private educational company, fell 11 percent last week to a one-month low of $16.07. Oppenheimer & Co. analyst Ella Ji said April 2 that students may avoid large gatherings because of the flu, impacting New Oriental.
- [By Seth Jayson]
New Oriental Education & Technology Group (NYSE: EDU ) reported earnings on April 24. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Feb. 28 (Q3), New Oriental Education & Technology Group met expectations on revenues and beat expectations on earnings per share. - [By Jake L'Ecuyer]
Equities Trading DOWN
Shares of New Oriental Education & Technology Group (NYSE: EDU) were 9.62 percent to $23.48 after the company reported FQ3 results. New Oriental's quarterly net income surged 50.2% y/y to US$42.1 million versus US$28.0 million.
10 Best China Stocks To Buy For 2014: Yanzhou Coal Mining Company Limited(YZC)
Yanzhou Coal Mining Company Limited engages in the underground mining, preparation, and sale of coal. It involves in manufacturing, washing, processing, and selling steam coal used in the electricity power sector; and metallurgical coal used with coking coal in the process of pulverized coal injection, as well as operates six coal mines. The company also engages in the provision of railway transportation services; production and sale of coal chemicals, primarily methanol; and generation of electricity and heat. In addition, it involves in the manufacture and sale of mining machinery and engine products; and development of integrated coal technology. Further, the company engages in the transportation via rivers and lakes; sale of construction materials; and trading and processing of mining machinery. It has operations primarily in China, Japan, South Korea, and Australia. The company was founded in 1973 and is based in Zoucheng, the People's Republic of China. Yanzhou Coal Mining Company Limited is a subsidiary of Yankuang Group Corporation Limited.
Advisors' Opinion:- [By Belinda Cao]
Yanzhou Coal Mining Co. (YZC), China�� fourth-largest coal producer, lost 3.6 percent last week to $10.33. The company posted its eighth weekly slump, the longest stretch of declines since August 1998. Bank of America Corp. cut the stock to the equivalent of sell from neutral May 3.
- [By MarketWatch]
Treasurer Joe Hockey said Yanzhou Coal Mining Co. (YZC) no longer needed to meet a Dec. 31 deadline for reducing its stake in Yancoal Australia Ltd. (YAL.AU) below 70%, citing the downturn in global coal prices. Yanzhou, which owns 78% of Yancoal Australia, had made the commitment in 2009 to complete its 3.5 billion Australian dollar (US$3.2 billion) takeover of Felix Resources Ltd.
- [By Roberto Pedone]
Yanzhou Coal Mining (YZC) engages in the underground coal mining, as well as preparation, processing, sale and railway transportation of coal. This stock closed up 7.6% to $7.31 in Thursday's trading session.
Thursday's Range: $7.14-$7.31
52-Week Range: $6.68-$18.57
Thursday's Volume: 391,000
Three-Month Average Volume: 370,383From a technical perspective, YZC bounced sharply higher here right off some near-term support at $6.77 with above-average volume. This stock has been downtrending badly for the last six months, with shares plunging from its high of over $14 to its recent low of $6.68. During that move, shares of YZC have been consistently making lower highs and lower lows, which is bearish technical price action. That said, shares of YZC have recently formed a double bottom chart pattern at $6.68 to $6.77. This stock now looks ready to reverse that downtrend and possibly trigger a near-term breakout trade. That trade will hit if YZC manages to take out some near-term overhead resistance levels at $7.76 to $8 with high volume.
Traders should now look for long-biased trades in YZC as long as it's trending above its recent low of $6.77 and then once it sustains a move or close above those breakout levels with volume that hits near or above 370,383 shares. If that breakout triggers soon, then YZC will set up to re-test or possibly take out its next major overhead resistance levels at $9 to $10. Any high-volume move above those levels will then give YZC a chance to tag its next major overhead resistance levels at $10.67 to $11.11.
10 Best China Stocks To Buy For 2014: Home Inns & Hotels Management Inc.(HMIN)
Home Inns & Hotels Management Inc. develops, leases, operates, franchises, and manages a chain of economy hotels in the People?s Republic of China. The company operates its hotels under the Home Inn brand name. As of April 28, 2011, it had approximately 800 Home Inns in operation and 1,000 Home Inns sealed in franchise agreements. The company was incorporated in 2001 and is headquartered in Shanghai, the People?s Republic of China.
Advisors' Opinion:- [By Jim Jubak]
The New York traded ADRs of China's Home Inns and Hotels Management (HMIN) have climbed 15.5% from September 24 to the close on October 11.
Part of the reason is a October 10 recommendation from Goldman Sachs that added the ADRs to its top pick list. And part of the reason is a huge surge in domestic travel during China's recently concluded National Day holiday week. (Home Inns and Hotels Management is a member of my Jubak's Picks portfolio.)
- [By Belinda Cao]
The Bloomberg China-US Equity Index (CH55BN) of the most-traded Chinese companies in the U.S. slumped 3.4 percent last week to a seven-month low of 89.04. The gauge traded at 13.5 times estimated earnings, 3.6 percent below the S&P�� valuation, data compiled by Bloomberg show. China Southern Airlines Co. (ZNH) and China Eastern Airlines Corp. (CEA) lost more than 6 percent April 5, while Home Inns & Hotels Management Inc. (HMIN) tumbled 16 percent in the week.
- [By Monica Gerson]
Home Inns & Hotels Management (NASDAQ: HMIN) is estimated to post its Q4 earnings at $2.18 per share on revenue of $1.54 billion.
Qiwi plc (NASDAQ: QIWI) is expected to report its Q4 earnings at $0.28 per share on revenue of $50.00 million.
10 Best China Stocks To Buy For 2014: Bitauto Holdings Limited (BITA)
Bitauto Holdings Limited provides Internet content and marketing services for the automotive industry primarily in the People?s Republic of China. The company offers subscription services to new automobile dealers that enable them to list pricing and promotional information on its bitauto.com Website and partner Websites, and to interact with consumers through its virtual call center, as well as provides advertising service to dealers and automakers on its bitauto.com Website. It also offers listing services to used automobile dealers, which enable them to display used automobile inventory information through its ucar.cn Website and partner Websites; and advertising services to used automobile dealers and automakers with certified pre-owned automobile programs on its ucar.cn Website. In addition, the company provides digital marketing solutions, including Website creation and maintenance, online public relationship, online marketing campaigns, and advertising agent service s. Bitauto Holdings Limited was founded in 2000 and is headquartered in Beijing, the People?s Republic of China.
Advisors' Opinion:- [By Jake L'Ecuyer]
Leading and Lagging Sectors
Technology stocks gained Tuesday, with Ku6 Media Co (NASDAQ: KUTV) leading advancers. Among leading tech stocks, gains came from Rubicon Technology (NASDAQ: RBCN), Bitauto Holdings (NYSE: BITA) and Sify Technologies (NASDAQ: SIFY). - [By Jake L'Ecuyer]
Leading and Lagging Sectors
Technology stocks gained Tuesday, with Ku6 Media Co (NASDAQ: KUTV) leading advancers. Among leading tech stocks, gains came from Rubicon Technology (NASDAQ: RBCN), Bitauto Holdings (NYSE: BITA) and Sify Technologies (NASDAQ: SIFY). Utilities shares dropped by 0.11 percent in the US market today. - [By Victor Selva]
The firm is currently Zacks Rank # 3��old, and it also has a longer-term recommendation of ��eutral�� A Hold rating indicates that the stock, over the next 1 to 3 months, will perform at an annualized rate of 10.56%, very similar to the S&P 500. For investors looking for a better Zacks Rank, Bitauto Holdings Limited (BITA), E-Commerce China Dangdang Inc. (DANG) and Vipshop Holdings Limited (VIPS) could be better options.
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