3 China Stocks That Got Slammed in July

Yingli Green Energy Hold. Co. Ltd. (ADR) (NYSE:YGE), Kandi Technologies Group Inc (NASDAQ:KNDI), and Baidu Inc (ADR) (NASDAQ:BIDU) are set to wrap up a dismal month

Jul 31, 2015 at 11:09 AM
facebook X logo linkedin

It was an absolutely dismal month for mainland stocks -- with China's Shanghai Composite logging it's largest monthly percentage drop since August 2009. The effect was felt by a number of U.S.-listed Chinese securities, including alternative energy issue Yingli Green Energy Hold. Co. Ltd. (ADR) (NYSE:YGE), electric car concern Kandi Technologies Group Inc (NASDAQ:KNDI), and search engine giant Baidu Inc (ADR) (NASDAQ:BIDU).

Not even a mid-July rally was able to save YGE from its steep monthly losses. In fact, the shares are poised to close out July with a 28% loss. What's more, the security has closed 15 of the past 21 sessions in penny-stock territory, and was last seen lingering near $0.88.

Against this backdrop, sentiment has been skewed toward the skeptical side. All of the analysts covering Yingli Green Energy Hold. Co. Ltd. maintain a tepid "hold" rating. Elsewhere, short sellers have been enjoying the fruits of their labor, with short interest accounting for a healthy 9.2% of the stock's available float.

Unlike its U.S. counterpart, KNDI has had a terrible year. Specifically, the shares have surrendered 48% of their value in 2015 -- and 20% in July alone. In fact, the stock bottomed at a new annual low of $6.68 on Tuesday, but was more recently seen hovering around $7.25.

In the options pits, speculators have been quick to initiate long puts over calls in recent months. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), Kandi Technologies Group Inc's 50-day put/call volume ratio of 0.60 sits just 13 percentage points from a 52-week peak.

BIDU is set to end July with a 12.5% deficit -- a loss only exacerbated by Tuesday's poorly received earnings report (which sent the shares tumbling to an annual low of $162). Longer term, the stock has given back 31% since topping out at a record high of $251.99 last November, and was last seen trading near $174.26.

Nevertheless, short-term speculators have rarely been as call-skewed toward Baidu Inc as they are now. The stock's Schaeffer's put/call open interest ratio (SOIR) of 0.60 sits below 98% of all comparable readings taken in the past year. Outside of the options pits, the majority of analysts maintain a "strong buy" toward the underperformer, with not a single "sell" to be found. Should BIDU continue to struggle, an unwinding of optimism could apply additional pressure.

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls



Rainmaker Ads CGI