Our approach at Chinavestor has been this: let's take a look at current developments from a distance. This helps us to lower the noise.
As the following chart reveals, while latest results came above estimates, revenues and earnings actually fell from previous quarter. Strong guidance makes up for some of the weakness but investors have to ask themselves if promised or proposed numbers are reliable enough. One thing is for sure: the yellow line - price chart -is out of sync with revenue and earnings growth. Now, two scenarios exist. Either KongZhong Corp. (NASDAQ:KONG) has been overpriced since June 2010, explaining why the yellow line stayed above the red earnings growth. If this is the case than current jump is not justified.
Or the price of the stock should be back to where it was earlier in 2009 or just slightly below, based on slightly lower earnings. It's you investor who is to judge.
March 17, 2010 (Chinavestor) Shares of Focus Media Holdings (NASDAQ:FMCN) gaped up +8.9% higher at the open on Wednesday after the company reported much improved profits last night. But the excitem...
March 15, 2010 (Chinavestor) Small cap Chinese property developer, China Housing & Land Development (NASDAQ:CHLN), reported 2009 fourth quarter and full year financial results today. Number di...
March 5, 2010 (Chinavestor) Shares of 51job Inc. (NASDAQ:JOBS) opened 10% higher in the morning with huge volume - but quickly surrendered most of early morning gains. The stock is trading up +3.02...
(Sept. 18, 2009 - Junqiang Zhang) Investors have to pay attention to online game developers and operators when it comes to NASDAQ listed Chinese stocks. Combined revenues of the sector surpass...
