Sell China Automotive (CAAS), Wonder Auto (WATG), and China Yuchai (CYD), Cramer Says (LEA, JCI, MGA)

Cramer believes that China Automotive Systems Inc. (NASDAQ: CAAS), Wonder Auto Technology, Inc. (NASDAQ: WATG), and China Yuchai International Limited (NYSE: CYD) are all sells. Crames thinks that they are not as good as the American auto parts plays right now. He believes you should swap out of China and into America in this sector.

The three stocks are up an average of 403% since the end of 2008, and may have reached their peak.

Jim C. believes that after an 80% run in the Chinese stock market last year, there are a lot of bubbles that have formed. The Chinese auto parts suppliers were not in as distressed of a state as the US counterparts during the market downturn, and therefore the current and future growth in their auto sector is pretty much already priced in to the stocks.

Additionally, he notes that the Chinese government is already beginning to reverse their stimulus for the auto industry, and it will only reduce it more in the coming months.

Finally, there is lots of room for competitors to enter the marketplace. North American companies may have even "amassed" the firepower to enter the Chinese market.

Companies he suggests you go with in America are:

• Magna International (NYSE: MGA);
  
  
• Johnson Controls Inc. (NYSE: JCI); and
  
  
• Lear Corp. (NYSE: LEA).

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