The market is behaving pretty mediocre after that big Austerity vote. An early rally has mostly fizzled.Among the standouts? Some Chinese names that have been getting slammed.
- Spreadtrum, the fabless semiconductor firm that’s come under attack from Carson Block, is up over 11% today.
- DangDang, the big e-commerce company, is up 10%.
- Harbin Electric — another one that’s made enemies of short-sellers — is up 3%.
- Ren-Ren (The Facebook of China, as it’s called, and a stock that’s been getting killed since its IPO) is up over 5%.
Some of it is being ascribed to a “short squeeze.”
Also helping: Bullish commentary from Piper Jaffray’s Gene Munster on Baidu, SINA, and DangDang:
Over the past month, Chinese Internet stocks have been under pressure due to a few factors including Alibaba Group’s spin-out of Alipay, which contributed to an underlying theme around corporate governance. We believe concerns around governance have begun to calm and expect investors to return to high quality names in China. As a result, we reiterate our Overweight ratings on BIDU, SINA, and DANG. We continue to expect BIDU to see residual benefits from the switch to Phoenix Nest; SINA continues to introduce new improvements to Weibo, which we believe better positions it to be the leading social platform in China; insider purchases by DANG management make us feel more comfortable about corporate governance, and we believe the quarter is tracking to plan.
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