Welcome to Episode #11 of the Zacks Market Edge Podcast.
Every week, host and Zacks stock strategist, Tracey Ryniec, will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life.
In this episode, Tracey is joined by John Blank, Zacks Chief Equity Strategist and editor of Zacks International Trader newsletter, as they discuss which are the best Chinese stocks for 2016.
John has been investing in Chinese stocks in the International Trader for several years so he's ridden the ups and downs in that market.
He thinks there's opportunities to get into some Chinese stocks in the new year, but he warns that investors have to be careful about the short sellers, which can decimate some of the small market cap names. He advises investors to stay in the biggest names like Baidu (BIDU), Ctrip.com (CTRP), and Trina Solar (TSL).
Investors also have to be aware of the dangers of these companies going private, as Qihoo (QIHU), a Chinese internet company, just announced. Qihoo traded as high as $124 a share in 2014 before plunging in 2015. But it is going private at just $77 a share, which would be a significant loss for a shareholder who bought at the peak.
Tracey hasn't invested in Chinese stocks, either in her personal portfolio or in her Zacks services, including Value Investor, for several years after getting burned a couple of years ago in some of the fraudulent reverse merger stocks.
Is she letting her past experiences taint her views?
If she had to invest, she shares two Chinese stocks she would be buying for 2016 if she were going to buy Chinese stocks.
Tracey and John also discuss Alibaba's (BABA) mysterious recent acquisition of a Hong Kong English-language newspaper and magazines for $260 million. Tracey dislikes the deal because it is outside of Alibaba's core business expertise but John thinks it will just expand Alibaba's content reach.
Should Alibaba be on your "buy" list for 2016? What other Chinese stocks are the best in their class? Listen to this week's podcast to find out.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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