© Mr.Thomas
Some analysts believe that the recent pullback in small-cap stocks offers a good entry point for the value investor, while others think that many of these stocks are still overpriced. It can be helpful to look at the market behavior of more sophisticated traders as a way of resolving this debate. Short sellers, for example, are among the most sophisticated investors.
Stocks with a large decrease in short interest are often companies that offer significant upside potential. American Superconductor (AMSC) is one such company in the diversified Electronics Industry. Over the last six months, insiders have been net buyers, and shares shorted have decreased as well. AMAG Pharmaceuticals (AMAG) is another company in the diagnostic substances industry where insiders have been buying up shares and short sellers have been decreasing their positions.
© tobo
Uranium prices have experienced the biggest drop in two years recently, but this may be coming to an end with news of India and China investing heavily in atomic power developments that will more than double global production of nuclear power. Prices for the radioactive metal tumbled as much as 27% in the wake of the Fukushima nuclear power plant crisis in Japan.
However, this has not deterred China and India from leading an estimated 46% increase in consumption by 2020. Soaring energy demand from the world's fastest-growing economies is boosting the prospects of miners such as Cameco Corp and Paladin Energy Inc. According to some experts in the field, the new generation of reactors that will be built in these countries are much safer then older reactors like Fukushima. For China, the decision is clear because they simply cannot satisfy the growth in electricity demand in a singe dimension and must pursue a diverse range of sources.
© Images_of_Money
The Chinese government is reviewing private equity applicants for a pilot scheme to allow foreign investors into yuan-denominated China investing for the first time via private equity funds. American funds Blackstone, Carlyle Group and DT Capital Partners have already been granted approval under the new Qualified Foreign Limited Partners (QFLP) program.
In addition to major buyout funds, the Chinese government is interested in attracting foreign capital from venture capital funds as well, with a preference for those that are co-invested by Chinese companies. The government is hoping that foreign capital and expertise can boost China's nascent private equity industry and help in economic restructuring. However, QLFP investors will still be treated as foreign investors, which means they will be subject to numerous restrictions when it comes to investing in Chinese companies.
