By
Anders Bylund (TMF Zahrim)
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More Articles
October 24, 2011
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Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of telecom software and services specialist AsiaInfo-Linkage (Nasdaq: ASIA ) gained as much as 11.5% on mild trading volume on Monday.
So what: This stock has a history of making large moves on very little news. Today's action falls in that general category, though fellow Chinese networking plays including E-Commerce China Dangdang (NYSE: DANG ) and Youku (NYSE: YOKU ) also notched nearly double-digit gains today on news that China might adjust the value of the yuan.
Now what: That volatility is both the thrill and the downside to investing in AsiaInfo-Linkage or many of its peers. You just never know what you're gonna get. Here's what I'd suggest if you're really interested in Chinese technology stocks: Learn all you can about one sector, identify the absolute top dog in that market, and make sure that the balance sheet will keep it alive for at least a couple of years. Then add that stock to your Foolish watchlist -- and wait for the next massive drop so you can open a low-risk position.
Interested in more information about AsiaInfo-Linkage? Add it to My Watchlist.