Sealy Corporation (NYSE: ZZ), China Marine Food Group (AMEX: CMFO) and China Shengda Packaging Group (NASDAQ: CPGI) had a good run in the week that is ending today. What is noteworthy is the fact that the northward price movement has come after a long journey in the downside. However, not everything seems to be fine with these stocks.

For investors who stayed put in Sealy Corporation (NYSE: ZZ), it has effectively remained flat with a marginal negative bias. While there is nothing fundamentally wrong with this producer of home furnishings, the stock (and the company) has just failed to take off in a big way. Since the business has largely become stagnant, quarterly results have lately become non-events. When sales grow, the business falls short on the margins front and the benefits of cost cutting get dissolved somewhere in loss of revenue. One consolation, however, is that the management keeps trying. Its current price of $2.55 isn’t too attractive but neither is exorbitantly priced. The stock should only be played for trading gains.

China Marine Food Group (AMEX: CMFO) has been falling since November last year. From the level of $6.75, it has halved in price to $2.77. While the results for the quarter ended March were reasonably good, lately the company has communicated that consumers are becoming increasingly concerned about the nuclear contamination in sea food. China is the biggest market for the company and its geographical proximity with Japan could mean an upside down set of numbers in the June quarter. Although it has gained 10 per cent in the last week, this bounce doesn’t look like a trend reversal, especially as the stock has had these kind of rallies earlier too.

Except a few relief rallies here and there, China Shengda Packaging Group (NASDAQ: CPGI) appears to be breaking down. Since getting listed in December, it has lost nearly 66 per cent in what can be termed as an inverted rally. In this backdrop, a gain of 13 per cent in the last 5 trading sessions also looks unreliable to buy into the story. Revenues and margins took a hit in the latest quarter but investors can find solace in the fact that the company is still profitable. Positive margins are something to cheer for long term investors as the dip in sales is due to an external factor – on account of restrictive financial policies by the People’s Bank of China something that can be imagined receding in future. Current price of $1.35 may be attractive for long term but don’t expect a miracle in the next 6 months.