- THE STREET SHEET
- Posts
- 🐉 Choose Your Chinese Stocks Wisely
🐉 Choose Your Chinese Stocks Wisely
Plus, how much money you would save if you did dry January.
Happy Friday afternoon to everyone on The Street. Here's a snapshot of where markets ended the trading session, plus tomorrow's trade idea delivered to you today.
🟩 | US stocks moved higher Friday. With that said, all three major averages broke a nine-week winning streak.
📈 | One Notable Gainer: Revelstone Capital Acquisition Corp (+91%). Shares are trading higher after the company canceled its special meeting to approve the business combination with Set Jet.
📉 | One Notable Decliner: Applied Therapeutics (-40%). Shares fell after the company released its latest Phase 3 test results for heart failure.
🐉 | Tomorrow's Trade: Choose Your Chinese stocks wisely. Scroll down for more.
Plus: today’s partner is helping you upgrade your home security.
YESTERDAY’S POLL RESULTS
Are you bullish or bearish on real estate stocks over the next 12 months?
🟩🟩🟩🟩🟩🟩 🐂 Bullish
🟨🟨⬜️⬜️⬜️⬜️ 🐻 Bearish
S&P 500 Heatmap. Credit: Finviz.
All stocks listed on US stock exchanges. Credit: Finviz.
Foreign ADR stocks on NYSE, NASDAQ, AMEX. Credit: Finviz.
MARKET MOVERS
PTON: Peloton shares continued to soar Friday, jumping nearly 10%. The company added roughly 14% on Thursday after announcing a partnership with TikTok.
STZ: Constellation Brands stock advanced 2% after earnings came in better than expected. Revenue fell short of estimates, however.
ELAN: Shares of Elanco Animal Health popped 6% on an upgrade from Stifel. The bank said the animal health company has opportunities to expand thanks to a robust pipeline.
AGL: Agilon Health’s stock plummeted 29% after cutting its 2024 revenue guidance due to increased expenses from specialist visits. The CFO also retired and J.P. Morgan gave the company a downgrade.
MPW: Medical Properties Trust shares tumbled 29% after the REIT said it’s working with its largest tenant to recover $50 million in unpaid rent.
TOGETHER WITH LOREX
Lorex has been a leading innovator in the security industry for over 30 years. Today, Lorex is proud to introduce the industry's first 4K video doorbell. This is NOT like other doorbells; it is full of unique features that separate it from the competition:
- Expansive head-to-toe 9:16 aspect ratio
- Color Night Vision
- Smart Motion Detection (Person, Vehicle, Animal, Package)
- Two-Way Talk and the ability to pre-program quick responses
- Motion-activated night light
Additionally, footage is saved locally, keeping it private and in the user’s control without monthly fees. For a more robust security ecosystem, this Doorbell can be recorded around-the-clock by connecting it to a Lorex Fusion Recorder along with other wired or wireless Lorex security cameras.
OVERHEARD ON THE STREET
Fox Business: The winter tourism industry in the U.S. typically brings in billions of dollars for the economy, but businesses in many cities across the country are struggling because of record-breaking warm temperatures.
WSJ: “Grand Theft Auto: San Andreas,” drove 11% of Netflix’s video game downloads in 2023, according to Sensor Tower. With that said, as of October, fewer than 1% of Netflix’s global subscribers were playing its games daily, Apptopia estimates.
BBG: Investors put $123 billion into cash funds in the week through Jan. 3, according to Bank of America. This was the largest sum ever for the first week, strategists led by Michael Hartnett wrote in a note, citing EPFR Global data.
Yahoo! Finance: In 2023, companies planned 721,677 job cuts, a 98% jump from 2022, according to a new report from professional outplacement firm Challenger, Gray, and Christmas. The number marks the highest annual total since 2020.
CNN: Consumers spent a record $222 billion online during the holiday season, up 4.9% from a year earlier, according to Adobe Analytics.
TOMORROW’S TRADE IDEA, TODAY
If you've been investing in Chinese stocks in recent years, chances are luck hasn't been on your side. Stock performance was disappointing in 2023, mirroring the trends of 2022 and 2021. The MSCI China Index has witnessed a substantial 60% decrease during this period.
The real estate sector is still on shaky ground, to put it lightly, and could continue to hinder the overall market’s performance.
However, 2024 could also present some surprising opportunities in the Chinese market, especially if you’re looking in the right places.
Red Tape, Red Market
Last year was supposed to be a big one for Chinese companies (and their stocks) as the country finally began to emerge from strict COVID-era lockdowns. Unfortunately for investors, the rally was short-lived mostly as a result of strict regulatory crackdowns across multiple sectors.
Confronted with yet another dismal year, Beijing is anticipated to initiate the rollback of certain regulations. This move could pave the way for undervalued Chinese stocks.
EVs and Semis
Some China watchers think that what goes down eventually needs to come back up. Analysts think two sectors, in particular, appear promising: Electric vehicles and semiconductors.
China's EV industry has experienced explosive growth, surpassing its competition. Li Auto (LI) saw its shares jump 83% last year. BYD, the market leader, saw an 11% surge in 2023.
Semiconductor production has become a focal point for the country in response to US tech sanctions. ACM Research (ACMR), a leading producer, tripled its performance in 2023.
While the notion of a turnaround in the overall Chinese market in 2024 is met with skepticism, there is undoubtedly the potential for lucrative opportunities in the nation's thriving companies and undervalued stocks — if you choose wisely.
Are you bullish or bearish on Chinese stocks over the next 12 months? |
A MESSAGE FROM OUR PARTNERS
It's not just a doorbell; it's a leap into the future of home security. Lorex, a trailblazer in the security industry for over 30 years, proudly introduces the industry's first 4K Video Doorbell.
Here’s just a few features that separate it from the competition:
- Expansive head-to-toe 9:16 aspect ratio
- Color Night Vision
- Smart Motion Detection (Person, Vehicle, Animal, Package)
- Two-Way Talk and the ability to pre-program quick responses
- Motion-activated night light
Even better, Lorex puts your privacy first by saving all footage locally, eliminating the need for monthly fees. But the innovation doesn't stop there – for a complete security ecosystem, seamlessly integrate your 4K Video Doorbell with a Lorex Fusion Recorder and other Lorex cameras, ensuring your home is protected around the clock. Upgrade your home security – choose Lorex.
ON OUR RADAR
BBG: Claire Exley, head of wealth services at investment company Nutmeg, calculated that if you save just $126 by doing dry January and invest it in a savings account with a 5% annual return, it will be worth $880 in five years, and $1,849 in 10.
WaPo: A poll conducted last month found that 36 percent of respondents believe that President Joe Biden’s election was illegitimate—a 7-point increase from two years ago.
The Guardian: According to 82 studies across 150,000 participants it’s estimated that over 25% of people worldwide had “smartphone addiction”.
The Information: OpenAI is launching a marketplace next week for the exchange and sale of customized artificial intelligence models.
Yahoo! Finance: Ken Griffin’s Citadel posted a 15.3% return in its main Wellington hedge fund last year, a person with knowledge of the matter said. Izzy Englander’s $61 billion firm Millennium Management gained about 10%, another person said.
Join the conversation