Top 5 China Companies For 2014

The latest earnings report from Nokia Corporation (NYSE: NOK) was a mixed bag for investors as there was some good news along with other news that�wasn�� so good or could even be considered bad.�I should mention that�we have Nokia in our�SmallCap Network Elite Opportunity (SCN EO) portfolio and we are up over 12% since early May. Nevertheless, an investment here is not for the risk adverse. With that in mind, here is a quick rundown as to where investors stand after the Nokia earnings report:

The Latest Earnings Report: Good and Bad. The Nokia earnings report was a mixed bag for investors. For starters,�Nokia shipped 7.4 million Lumia smartphones in the quarter for a 32% sequential rise, but that was fewer than the 8.1 million units analysts had�expected according to�a Reuters poll�while sales of regular mobile phones were also weaker than expected at 53.7 million units verses expectations of 56.2 million units. Nokia�� sales�fell to 5.7 billion euros ($7.49 billion) from 7.5 billion euros for the same�period last year, but cost cutting has helped the company to trim its net loss to 227 million euros verses a net loss of 1.41 billion euros a year earlier. However, sales of Lumia phones increased by 32% sequentially to 7.4 million handsets. Nokia�� CEO Stephen Elop also said the mobile phones business unit started to demonstrate "some signs of recovery in the latter part of the second quarter following a difficult start to the year��and he added that the�Lumia 520 has "enjoyed a strong start in markets like China, France, India, Thailand, the UK, the US and Vietnam." Finally, Nokia Siemens Networks, the�network infrastructure company, was a clear bright spot as�operating margins came in at 11.8%, well above the 5%�the company had been expecting and much better than the negative 1.2% operating margins in the core handset division. Some Analysts Are Optimistic. Although Greger Johansson with research firm Redeye in Stockholm said he was worried about the rapid sales decline of the feature phones,�noting that�Nokia has to keep launching new Lumia models at a rapid pace to keep up client interest in the Windows phones, he also added that the company:�

"��as a few more quarters to make it. They are now more or less breaking even, that's a good starting point. The company has to keep on releasing new, very attractive products to catch market share from Samsung and Apple. I think Nokia still does have pretty good chance of doing that."

Top 5 China Companies For 2014: Top Image Systems Ltd.(TISA)

Top Image Systems Ltd. provides enterprise solutions for managing and validating content entering organizations from various sources. It develops and markets automated data capture solutions for managing and validating content gathered from customers, trading partners, and employees. The company?s solutions deliver digital content to the applications that drive an enterprise by using technologies, such as wireless communications, servers, form processing, and information recognition systems. It offers eFLOW Unified Content Platform that provides the common architectural infrastructure for its solutions. The company also provides Smart, an automated classification solution, which is the eFLOW plug-in for unstructured content providing single point of entry for information entering the organization; and Freedom, the eFLOW plug-in for semi-structured content that enables customers to identify and capture critical data from semi-structured documents, such as invoices, purchase orders, shipping notes, and checks. In addition, it offers Integra, the eFLOW plug-in for structured content, which provides a solution for data capture, validation, and delivery from structured predefined forms; eFLOW Ability, an integrated module interfacing with SAP systems for automated parking, approval, and posting of invoices and other document within SAP systems; and eFLOW Invoice Reader, an invoice capture and approval solution, which could be deployed and integrated in enterprise accounting environment, such as SAP, Oracle, and other financial systems. Top Image Systems Ltd. sells its products through a network of value-added distributors, systems integrators, original equipment manufacturers, and partners in approximately 40 countries worldwide. It has strategic partnership with SQN Banking Systems (SQN) to incorporate SQN's fraud detection solutions with its eFLOW Banking Platform in the Asia Pacific market. The company was founded in 1991 and is headquartered i n Ramat Gan, Israel.

Top 5 China Companies For 2014: Bona Film Group Limited(BONA)

Bona Film Group Limited distributes films in the People?s Republic of China. It distributes films to movie theaters, as well as to non-theatrical distribution channels, including DVD and Blu-ray and other home video products; Internet and digital distribution; in-flight entertainment; and cable, satellite, and broadcast televisions. The company also invests in the production of Chinese and Hong Kong films in order to obtain the distribution rights for movie theaters and non-theatrical channels. In addition, Bona Film Group operates six movie theaters in five cities of the People?s Republic of China; operates a talent agency business that represents artists; and involves in film advertising and television production businesses. The company was founded in 2003 and is headquartered in Beijing, the People?s Republic of China.

Advisors' Opinion:

• [By Seth Jayson]

  Calling all cash flows
  When you are trying to buy the market's best stocks, it's worth checking up on your companies' free cash flow once a quarter or so, to see whether it bears any relationship to the net income in the headlines. That's what we do with this series. Today, we're checking in on Bona Film Group (Nasdaq: BONA  ) , whose recent revenue and earnings are plotted below.

• [By Bryan Murphy]

  With just a quick glance at the chart, Bona Film Group Ltd (NASDAQ:BONA) doesn't look like anything other than an erratic mess. When you take a step back and take a look at the longer-term chart of BONA, however, you can see the last several weeks have ushered in a major bullish change of direction for the stock... meaning now's a great time to start wading into a position.

Hot Bank Stocks To Buy Right Now: China Security & Surveillance Technology Inc. (CSR)

China Security & Surveillance Technology, Inc., together with its subsidiaries, manufactures, installs, distributes, and services surveillance and safety products, systems, and software in the People?s Republic of China. The company?s products include standalone digital video recorders (DVRs); embedded DVRs; mobile DVRs; real-time hard-compression coding cards; DVR compression boards; digital cameras; intelligent high-speed dome cameras; intelligent control system software platforms; perimeter security alarm systems; monitors; and radio frequency identification terminals and data collectors. It serves various customers, which include governmental entities, such as customs agencies, courts, public security bureaus, and prisons; non-profit organizations, including schools, museums, sports arenas, and libraries; and commercial entities consisting of airports, hotels, real estate, banks, mines, railways, supermarkets, and entertainment venues. The company is headquartered in S henzhen, the People?s Republic of China.

Top 5 China Companies For 2014: Suntech Power Holdings Co. LTD.(STP)

Suntech Power Holdings Co., Ltd., a solar energy company, engages in the design, development, manufacture, and marketing of photovoltaic (PV) products. The company also provides engineering, procurement, and construction services to building solar power systems for certain related party and third party customers. Its products include monocrystalline and multicrystalline silicon PV cells; PV modules; and building-integrated photovoltaics products. In addition, the company provides PV system integration services, including designing, installing, and testing PV systems used in lighting for outdoor urban public facilities, as well as in farms, villages, and commercial buildings; and project development services. Its products are used to provide electric power for residential, commercial, industrial, and public utility applications. The company sells its products through value-added resellers, such as distributors and system integrators; and to end users, such as project develo pers primarily in Germany, Italy, Spain, France, Benelux, Greece, the United States, Canada, China, the Middle East, Australia, and Japan. Suntech Power Holdings Co., Ltd. is headquartered in Wuxi, the People?s Republic of China.

Advisors' Opinion:

• [By Dan Carroll]

  China's companies now have even less wiggle room to operate, considering lending's either expensive or hard to come by. As investment flows out of the country, unstable companies won't survive, even with government support. Solar-power company Suntech Power's (NYSE: STP  ) recent bankruptcy is an early sign of things to come. Suntech was the first Chinese solar-power company to go public when it hit the market in 2005, and generous public subsidies helped propel its growth. With money tightening across the country, Suntech's questionable business practices sank it -- the first of what could be more troubles to come for weaker Chinese company.

• [By Gary Bourgeault]

  Other companies of note that will be hurt will be LDK Solar (LDK), Suntech Power (STP), JA Solar Holdings Co., Ltd. (JASO) and Renesola (SOL) among others. Some these are already hanging on by a thread because of taking on too much debt and defaulting on bonds.

• [By Travis Hoium]

  It's been a little over a month since Suntech Power (NYSE: STP  ) refused to pay bondholders the money they were owed, which eventually left the company's Chinese operations in insolvency. The company isn't quite bankrupt yet, but all indications are that it's headed that way, because even Chinese banks want to liquidate operations.

Top 5 China Companies For 2014: Trina Solar Limited(TSL)

Trina Solar Limited, through its subsidiaries, designs, develops, manufactures, and sells photovoltaic (PV) modules worldwide. The company offers monocrystalline PV modules ranging from 165 watts to 185 watts in power output; and multicrystalline PV modules ranging from 215 watts to 240 watts in power output that provide electric power for residential, commercial, industrial, and other applications. It also involves in the design and production of various PV modules, such as colored modules for architectural applications and larger sized modules for utility grid applications based on customers? and end-users? specifications. Trina Solar Limited sells and markets its products primarily to distributors, wholesalers, power plant developers and operators, and PV system integrators. The company was founded in 1997 and is based in Changzhou, the People?s Republic of China.

Advisors' Opinion:

• [By Michael Lewis]

  To be fair, the industry is showing signs of improvement. Another China-based manufacturer, Trina�Solar (NYSE: TSL  ) , announced that it is targeting a return to profitability in the back half of this year. American firm First�Solar (NASDAQ: FSLR  ) soared this week on similar news. But does any of this suggest that Buffett would want to own one of these businesses?