Short Sellers Are Optimistic About these 8 Chinese Stocks

Looking for rebound candidates? We screened a universe of Chinese stocks for those with significant levels of short covering. Clearly short sellers thing these names are set to rise higher, do you agree?

Short Covering: Short sellers profit when stocks decrease in price, and lose when they rise. So it’s considered a sign of optimism (or decreased pessimism) when short sellers start to reduce their short positions. We screened for a decrease in short positions month over month.

Here are the stocks that made it though our screen. Use this list as a starting point for your own analysis.

List Average 1-Year Return: -9% 

1. AsiaInfo-Linkage,Inc. (ASIA, Earnings, Analysts, Financials): Provides telecommunications software solutions and information technology (IT) products and services to telecommunications carriers and other enterprises in the People’s Republic of China. Market cap at $876.77M, most recent closing price at $12.09.  Shares shorted have decreased from 4.39M to 3.72M over the last month, a decrease which represents about 1.43% of the company’s float of 46.82M shares. Days to cover ratio at 14.54 days.

2. E-Commerce China Dangdang Inc. (DANG, Earnings, Analysts, Financials): Operates as a business-to-consumer e-commerce company in the People’s Republic of China. Market cap at $399.55M, most recent closing price at $5.0.  Shares shorted have decreased from 8.18M to 7.44M over the last month, a decrease which represents about 2.19% of the company’s float of 33.79M shares. Days to cover ratio at 7.99 days.

3. Fushi Copperweld, Inc. (FSIN, Earnings, Analysts, Financials): Develops, designs, manufactures, markets, and distributes bimetallic wire products, principally copper-clad aluminum (CCA) and copper-clad steel (CCS). Market cap at $348.31M, most recent closing price at $9.08.  Shares shorted have decreased from 2.97M to 2.70M over the last month, a decrease which represents about 1.3% of the company’s float of 20.81M shares. Days to cover ratio at 6.85 days.

4. Mindray Medical International Limited (MR, Earnings, Analysts, Financials): Through its subsidiary, Shenzhen Mindray Bio-Medical Electronics Co., Ltd., develops, manufactures, and markets medical devices worldwide. Market cap at $4.11B, most recent closing price at $34.84.  Shares shorted have decreased from 10.44M to 8.61M over the last month, a decrease which represents about 2.18% of the company’s float of 83.86M shares. Days to cover ratio at 16.21 days.

5. Qihoo 360 Technology Co. Ltd (QIHU, Earnings, Analysts, Financials): Provides Internet and mobile security products in the People’s Republic of China. Market cap at $2.86B, most recent closing price at $24.0.  Shares shorted have decreased from 16.87M to 15.96M over the last month, a decrease which represents about 2.09% of the company’s float of 43.44M shares. Days to cover ratio at 8.31 days.

6. Renren Inc. (RENN, Earnings, Analysts, Financials): Operates a social networking Internet platform in China. Market cap at $494.81M, most recent closing price at $3.77.  Shares shorted have decreased from 14.74M to 11.94M over the last month, a decrease which represents about 1.08% of the company’s float of 258.12M shares. Days to cover ratio at 5.73 days.

7. Sohu.com Inc. (SOHU, Earnings, Analysts, Financials): Engages in the brand advertising, online gaming, sponsored search, and wireless businesses in China. Market cap at $1.56B, most recent closing price at $41.0.  Shares shorted have decreased from 4.64M to 4.11M over the last month, a decrease which represents about 1.78% of the company’s float of 29.70M shares. Days to cover ratio at 5.09 days.

8. Trina Solar Limited (TSL, Earnings, Analysts, Financials): Designs, develops, manufactures, and sells photovoltaic (PV) modules worldwide. Market cap at $344.24M, most recent closing price at $4.23.  Shares shorted have decreased from 13.52M to 12.16M over the last month, a decrease which represents about 2.06% of the company’s float of 66.11M shares. Days to cover ratio at 7.62 days.

Short data sourced from Yahoo! Finance, all other data sourced from Finviz.

Use Kapitall’s Tools: Looking for ways to analyze this list?

Use this article snapshot as a launch pad (click here for help): Simply click on the links, and use Kapitall’s tab navigation to browse through the data…

Analyze These Ideas: Getting Started

• Read descriptions for all companies mentioned
• Access a performance overview for all stocks in the list
• Compare analyst ratings for the companies mentioned
• Compare analyst ratings to annual returns for stocks mentioned
• Real-Time Opinion: Scan the latest tweets about these companies (feed will open in a new window)

Dig Deeper: Access Company Snapshots, Charts, Filings

• AsiaInfo-Linkage,Inc. (ASIA, Chart, Download SEC Filings)
• E-Commerce China Dangdang Inc. (DANG, Chart, Download SEC Filings)
• Fushi Copperweld, Inc. (FSIN, Chart, Download SEC Filings)
• Mindray Medical International Limited  (MR, Chart, Download SEC Filings)
• Qihoo 360 Technology Co. Ltd  (QIHU, Chart, Download SEC Filings)
• Renren Inc.  (RENN, Chart, Download SEC Filings)
• Sohu.com Inc.  (SOHU, Chart, Download SEC Filings)
• Trina Solar Limited  (TSL, Chart, Download SEC Filings)

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