CDC Corp (CHINA)

mekari9812 (< 20) Submitted: 7/04/07 6:21 AM : Start Price: $8.74 CHINA Score: -41.50

CDC Corp is looking to "unlock shareholder value" by spinning off its online game hosting and developing business from its software business. Its market share in both, online games and software business, is growing tremendously. Its current PE ratio is 75, but its projected 2007 PE ratio is 19 or better. Comparing it with SINA, SOHU, and BIDU, their future PE ratio is 47.8, 47.5, and 97.5 respectively (as of the closing day of July 3rd, 2007). This tells me the China stock could easily double from here, and very soon. The Institutional ownership of the stock has recently increased signaficantly. Short sales have increased lately more than average which indicates the stock is oversold. The upcoming Olympics to be held in China in 2008 will aid the Chinese Internet companies in general to enjoy a nice upward boost in business (increased online advertisement revenue)and consequently in stock price performance. There has been a nice share accumulation by officers of the company (including its CEO). Last, but not least, the high-tech stocks normally observe a nice lift in the fall. DISCLOSURE: I own shares of CDC Corp.

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