To OTC Journal Members: 
 

Giant Rebound- Three Bargains To Look At Now

Today there's an impressive rebound day in the overall markets. Sort sellers seem happy to cover has last week's complete collapse, which is fueling a nearly 400 point rally in the DOW.

Small cap China stocks continue to trade poorly against the backdrop of some high profile Gurus who continue to expose the concept of a "real estate" bubble in China. There's some truth to it- real estate prices are up nearly 30% over the past year. The Chinese government is taking steps to cool off the overheated market with some new lending curbs and higher equity requirements. The Chinese real estate bubble isn't even remotely close to the US version that nearly caused the complete collapse of the financial system. While prices might be a bit high, there's no excessive leverage for unqualified buyers. Prices might come down a bit, which would make a few individuals lose money on paper. That's about the extend of the downside.

In the meantime, the number of citizens who have migrated from the rural areas to the urban areas has doubled from 5% of the population (65 million) to 10% of the population (130 million) in the last 5 years. The growth rate is accelerating, and the Chinese are the new and growing consumer class.

Short and sweet: Here are three of my current followings that are absurdly oversold and might trade very well after Q1 earnings releases:

• China Recycling Energy (NASDAQ: CREG)- earnings coming out Thursday of this week- the 13th, with a 10AM eastern conference call.
• China Education Alliance (NYSE: CEU)- Earnings Wednesday, the 12th- time unknown yea
• Biostar Pharma (NASDAQ: BSPM)- Earnings release date not known yet, but should be in the next week.

Disclosure: Long All Three Stocks

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