Today, we offer up one more "China confounds the skeptics" chart – one near and dear to our hearts. The chart displays the past five years of trading in one of China's largest airline companies, China Southern Airlines (ZNH).
The Chinese stock market is one of our favorite markets to trade. Since China is the world's greatest growth story, it attracts an enormous amount of speculative trading capital. This makes stocks there boom and bust like crazy. You can ride 'em up, and you can ride 'em down.
In mid-2007, China stocks were in the middle of a historic boom. When this boom turned to bust, we picked on China Southern as a stock that would get crushed. The stock went on to fall from $35 per share to just $6 per share as our prediction came true.
But as we've recently noted, high-profile "China plays" are surging right now… including our old friend China Southern. The stock is up 62% this year and sits at a 52-week high. We're sure this big boom will end brutally – just as the one in 2007 did. But for now, it's "game on" in Chinese stocks.