More bad news for Chinese jeweler FUQI. Among my largest losers. I had bet it could have been a competitor to Tiffany in the Chinese market. Maybe not a close competitor, but with a p/e 1/4 that of TIF's and an apparently strong balance sheet and growth, a growing profitable company.
It may still overcome its issues. That's it for me though for a while. Out now.
finance.yahoo.com
Something just not right with these stocks. Too many are down. And it's not just my picks, because I have too many different companies for it to be stock specific. Either the Chinese small cap market is out of favor with investors as a macro call on China economy and/or fear of government intervention, or the system is so suspiciously corrupt that we are seeing company after company with accounting issues, fraud issues, insiders roughshod over small outsider investors, etc.
I'm selling because of the pain and losses, and because I want to redeploy monies elsewhere. My opinion is that my sales at max pain might be a very good indicator that people here might consider it a good contrary indicator and should maybe consider buying into this sector now. There is continuing growth in China, and these small caps will grow.
I'm keeping some of these stocks on my watch list, and if I see some good news or regain some of my confidence, I may buy back in. |
