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Wednesday, June 29, 2011

E Commerce China Dangdang Inc (DANG) - Too cheap to not buy?

The market has not been friendly to Chinese ADRs this year as some US listed Chinese companies revealed questionable accounting practices.  Shorters saw the opportunity and punished any stock with headquarter in China - including quality ones.  And this may very well be the opportunity to discover these decent Chinese stocks that were the wrong target for shorters.

One such company is E Commerce China Dangdang Inc. (NYSE: DANG).  To those of you who've never heard of the company, just like is the Google of China, Dangdang is a well know business-to-consumer(B2C) e-commerce company in China equivalent to Dangdang began as an online book retailer and became the largest book retailer in China. With strong customer base, the company later tap into broader market by selling general merchandise. By now you've probably seen the similarity with as the US online retail giant also followed the same path to success.
However when you look at the stock price and market cap, dwarf Dangdang Inc with market cap of $92 billion at $204.18 per share while the Chinese counterpart is a mere market cap of $189 million at $12.09 per share. Dangdang did have a successful IPO with shared traded as high as $36 per share end of last year. Unfortunately great company like this that generate annual revenue of $2.2 billion in 2010 also can get investor confidence and is now traded way below the IPO price. So seeing how did and there is a lot of hope in this beaten down stock.

Monday, June 27, 2011

Pandora Media - The Next Big Internet Stock

The first wave of internet revolution took place back in 2000 with superstars like Amazon,com (AMZN) and  Although both internet giants were traded in single digit after the internet bubble burst, both are now today traded in triple digits with share prices at $201 and $487 respectively.  If you missed the opportunity in investing either of those internet superstar, now maybe a good time again with the emerging of social media brings new players.  

One of the companies worth looking at is Pandora Media (NYSE:P), which provides automatic music recommending service - the social media in the music entertainment space.  Since going public in mid-June and reached $26 per share, stock has dropped as low as $12 per share and is now trading at $16.52 per share.  With trading volume now at only a fraction of its IPO day volume, the all the hypes probably have evaporated so it should be saver to buy the stock.  

Although the company has yet turn a profit, it is growing rapidly with annual revenue at $137 million ending January 2011, up from $55 million in 2010 and $19 million in 2009.  Pandora has 90 million registered users in April and growing with over 50% market share of the internet radio market.  Three months earlier there were 80 million registered users which translates to about average 3 million new registered users per month.  At the current growth rate, we could see another internet superstar in making.

Tuesday, June 7, 2011

Corinthian Colleges(Nasdaq:COCO) Back to Life

With year long slide in price, most people have abandoned shares of Corinthian Colleges (Nasdaq:COCO) with uncertainty grows over government's probe on the entire for-profit college sector.  However the Department of Education's release of a softened version of the "gainful employment" rule recently clears away the uncertainty that has been hammering the stock price.  Shares of Corinthian Colleges surged 30% following the announcement and is now trading at $5 per share, still more than 30% above the 52 weeks low.  We should definitely see more buyers coming back for this hard beaten stock.