Doubles, Triples and Even Quadruples – Oh My!

Robert Hsu, August 18, 2009

In this Issue:

Over the past few weeks, we've talked a lot about earnings season and particular Chinese companies with outstanding reports. Well, this week, I'd like to wrap up this discussion, as earnings season is quickly drawing to a close.

If you recall our first talk about earnings season back in July, I noted that Wall Street had lowered the bar for second-quarter earnings, giving companies the opportunity to really surprise to the upside. That's exactly what we've seen happen -- more than 70% of the companies that have reported so far have beaten analysts' estimates.

And as I expected, these positive earnings reports pushed global stock markets higher. Just take a look at global stock market gains during July:

Dow Jones, up 8.6%
India's Sensex, up 8%
S&P 500, up 7.4%
Japan's Nikkei, up 4%

But even these nice gains pale in comparison to the whopping 15% gain in China's A-Share stock market in July. Chinese-traded shares were able to substantially outperform because Chinese companies didn't just post OK results due to cost cutting like most U.S. companies. On the contrary, they posted robust results with incredible forward-looking guidance on solid business fundamentals.

While we covered quite a few of these reports and outlooks in-depth in recent weeks, let's take a few minutes to recap why these companies' shares just continue to push higher.

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Doubles, Triples and Even Quadruples – Oh My!

In this Issue:

Earnings Season Recap

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