We’re Out of Qihoo and Dr. Reddy

The recent market volatility has caused us to hit our sell stop on Qihoo 360 Technology (Nasdaq: QIHU). But many of our other holdings are doing well.

Indian bank HDFC (NYSE: HDB) is up over 3% today on good volume. Indian stocks are higher on hopes of an interest-rate cut. But a better reason to own this stock is superb sales and earnings growth. Last quarter the bank posted a 50% increase in profit on a 36% jump in revenue. And with operations expanding into more towns and rural areas in India, there are good reasons to believe this earnings roll will continue.

China Life Insurance (NYSE: LFC) is also making a nice move today. We only added it to our portfolio last week, but our shares are already up 8%. Raise your sell stop to $29 here.

China Mobile (NYSE: CHL) is up three points from our entry price. Plus, it went “ex” a $1.125 dividend on May 17 that will be paid into your account Monday. Raise your sell stop to $49 here.

NetEase (Nasdaq: NTES) is also in the black for us. And a lot of indexers will start buying the stock in the days ahead. Monday, NetEase will be added to the Nasdaq Q-50 Index. Haven’t heard of this one? The Nasdaq Q-50 is designed to track the performance of the 50 securities that are next in line to replace the securities in the NASDAQ-100. (And, yes, many investors and institutions buy this smaller index due to the growth prospects of its 50 members.)

New Oriental Education (NYSE: EDU) is trading just a few pennies away from our entry price. But I still see plenty of upside potential here. Education is a prized resource in China. And the Chinese education system requires students to take a wide variety of standardized tests. New Oriental gets students ready, offering classes in English and test preparation for students, beginning at age 5. The company also runs a full-service private school (with plans to expand nationwide), a book distribution business and an educational Web site.

New Oriental will report quarterly results on July 13. The consensus is that the company earned 12 cents a share in the May quarter, but I believe we’ll see an upside surprise. Keep buying.

Dr. Reddy’s Laboratories (NYSE: RDY) is trading only slightly above our tightened sell stop at $28. Today I’m going to suggest that you go ahead and sell RDY at market and put the proceeds to work in any of the other buy recommendations below.

A particularly attractive one right now – which is also making a nice move today – is Yanzhou Coal (NYSE: YZC). This is China’s biggest coal producer. Coal fires roughly three-quarters of China’s power output – and Yanzhou also supplies much of the metallurgical grade coal for steel furnaces. The stock is very cheap at just five times this year’s estimates.

I’m currently researching several other attractive opportunities in the Pacific Rim and will have a new recommendation in your hands before long. However, the buy recommendations below are well worth adding to at current levels.

If you have any questions, feel free to call one of our VIP Trading Services representatives at 888.570.9830 (toll-free) or email: viptrader@oxfordclub.com, or call Pillar One Advisor Rick Pfiefer at 800.438.3040 or 407.667.4729.

Current Portfolio:

Stock: China Life Sciences (NYSE: LFC)
Country: China
Current Price: $36.02
Comments: Buy. Raise sell stop to $29.

Stock: Yanzhou Coal (NYSE: YZC)
Country: China
Current Price: $15.97
Comments: Buy. Sell stop is $13.

Stock: Qihoo 360 Technology (MUSE: QIHU)
Country: China
Current Price: Stock hit sell stop
Comments: Sell at market.

Stock: NetEase (Nasdaq: NTES)
Country: China
Current Price: $61.09
Comments: Buy. Sell stop is $50.

Stock: New Oriental Education (NYSE: EDU)
Country: China
Current Price: $27.27
Comments: Buy. Sell stop is $23.

Stock: HDFC (NYSE: HDB)
Country: India
Current Price: $31.15
Comments: Buy. Sell stop is $27.

Stock: Dr. Reddy’s Laboratories (NYSE: RDY)
Country: India
Current Price: Trading only slightly above our tightened sell stop
Comments: Sell at market.

Stock: China Mobile (NYSE: CHL)
Country: China
Current Price: $51.09
Comments: Buy. Raise sell stop to $49.