Best,of,CER,Alpha|Best of me

　　Go long on China’s trina solar to ride out sector downturn　　February 24, 2012　　Trina Solar reported higher fourthquarter losses than analysts expected, leading the stock to decline 12% to US$8.63 at close. The solar sector has taken a drubbing in the past year based on oversupply that has virtually halved prices. Some players will need to go out of business or consolidate before the industry rights itself, and it is unclear how long that process will take. In the meantime, there may be opportunities to purchase solar stock on the cheap with the aim of riding out the downturn. After taking a hit Thursday, Trina is one such opportunity. The company is China’s fifth-largest solar manufacturer but has among the clearest balance sheets. That helps ensure that Trina will stay afloat and is even allowing it to expand in the downturn, leaving it better positioned for when the industry regains its feet. The takeaway: Consider buying Trina Solar (TSL.NYSE) after Thursday’s slump as it seems likely to emerge from the downturn in good position.
　　Plays on China could strengthen gold bets
　　February 17, 2012
　　China appears set to surpass India to become the world’s largest market for gold, industry group World Gold Council said Thursday. Chinese demand for gold is growing at roughly 20% per year, with roughly a third of gold purchased for investment purposes. This bull story is nothing new, and many analysts expect the metal – currently trading at about US$1,733.70 – to inevitably hit US$2,000 per troy ounce. The even older bear story is that someday we will all come to our senses that gold is a useless, shiny material with little inherent value. But the bull story remains persuasive as the metal is both a hedge against inflation – a continuing concern in China – and against general stock market uncertainty, which China has in spades. Betting on gold by way of China therefore seems likely to offer larger returns than individual bets on both. The takeaway: Investors can consider buying into the just-launched Hang Seng RMB Gold ETF (83168. HKG) that tracks the price of gold and– by virtue of being denominated in yuan– will add to returns with the currency’s likely appreciation. Stocks to consider include China’s leading gold suppliers Zijin Mining Group (2899.HKG) and Zhaojin Mining Industry (1818.HKG).
　　China bakery chain christine international a buy in ipo
　　February 21, 2012
　　Christine International Holdings, owner of the mainland bakery chain, will go forward with its Hong Kong IPO on Thursday, raising up to US$70.9 million. The bakery chain has ridden the trend of increasing middle-class demand for breads and cakes. Along the lines of KFC’s strategy in China, Christine has tailored its food to the market by offering Western-style cakes with Chinese characteristics, including meat floss and lower amounts of sugar. Same-store sales growth at its nearly 900 locations in China appears steady, and it plans to open more than 300 stores by the end of 2013. With locations in only 22 cities, the company has plenty of room for expansion. The only caveat on growth is rising ingredient prices, but that problem is hardly unique to the baking business. The takeaway: Consider buying Christine International Holdings (1210. HK), which if priced near the top of its range at HK$2.22 will come at a bit of a premium compared to where it may be in six months time. In typical Hong Kong fashion, the stock price may rise quickly out the gate, but solid fundamentals should bring long-term growth.