November 10, 2011 (Chinavestor) Earnings season is on with most Chinese internet stocks done with 2011 Q3. While some can argue that it has been a mixed bag so far, I am of a view that the glass is at least half full. Yet Sina Corp. (NASDAQ:SINA) and Sohu.com Inc. (NASDAQ:SOHU) continued to deepen losses in the morning session today while 51job Inc. (NASDAQ:JOBS) eked out a miniscule gain.
Yet fundamentals tell me a different story. Let's take a look at Sina Corp. (NASDAQ:SINA), the second largest Chinese website by traffic. The company reported sound revenue growth yesterday but losses mounted due to non-cash related investment write downs and goodwill. Despite mounting paper losses, Jeffrey's maintained BUY rating of the company with target price of $128! To see where they came from, read Sina is buy on dip.
Sina Corp. Top/Bottom Line Growth
Another liquid NASDAQ listing, 51job Inc. (NASDAQ:JOBS) reported very good earnings after the close yesterday, yet the company failed to gain traction today. 51job Inc. (NASDAQ:JOBS) reported healthy top and bottom line growth, strong margins and bullish outlook. 51job 2011 Q3 shines.
51job Inc. (JOBS) Top/Bottom Line Growth
Both Sina Corp. (NASDAQ:SINA) and 51job Inc. (NASDAQ:JOBS) has plenty of cash, little or no debt and sound cash flows from operation. Yet both are trading sideways at best at 1:00 P.M. on Thursday.
We understand that high beta stocks are under pressure right now, including Sohu.com Inc. (NASDAQ:SOHU). But we're fully aware that fundamentals drive stock prices ultimately, and with that these stocks offer investment opportunities for the intelligent investor.