Three Chinese based companies, E Commerce China Dangdang Inc (ADR) (NYSE:DANG), Wowjoint Holdings Limited (NASDAQ:BWOW), and Spreadtrum Communications, Inc (ADR) (NASDAQ:SPRD) will give an investor a chance to look at an internet, infrastructure, and semi-conductor play in the Small Cap realm.
While there’s been a lot of talk lately about China engaging a “Stimulus Package” to reinvigorate its growth, it appears that like the U.S. Fed Chairman said today it’s available; but not going to be put into motion just yet.
Today China surprised the global markets by cutting its benchmark lending rates by 25 basis points and that was perceived as a move and a signal that the Chinese economy isn’t shrinking as fast as everyone had thought.
So is it time to rethink investing in China?
For an e-Commerce, Amazon type play; There’s DANG that offers approximately 590,000 book titles on its Website, including more than 570,000 Chinese language titles. The Company also offers other media products and selected general merchandise categories on its Website, including: beauty and personal care products, home and lifestyle products, and baby, children and maternity products.
For an infrastructure play; There’s BWOW that which makes customized heavy duty lifting and carrying machinery used in large scale infrastructure projects in China such as railway, highway, and bridge construction. The Company also has two giant Movable Scaffolding Systems being constructed in Malaysia and a massive tire gantry being built in Peru.
For a semi-conductor play; There’s SPRD that makes and sells mobile chipset platforms for smartphones, feature phones, tablets, and other consumer electronics products that support second generation (2G), third generation (3G) and fourth generation (4G) wireless communications.
SPRD is trading today in the $18.93 range; BWOW is trading in the $0.38 range, and DANG is trading in the $5.49 range. All three are a long way off from their 52-week highs.
A retailer, a heavy machinery maker, and chip maker seem like a good spread to begin with in revisiting the question is time to start thinking China again.
I haven’t, don’t, and do not intend on holding any of the companies mentioned in this article.