E-House (China) Holdings Limited (EJ)

balabanovj (< 20) Submitted: 9/16/2008 3:40:05 AM : Start Price: $8.35 EJ Score: +163.83

China in the world of capitalism is a nascent market. Relatively speaking, buying in on any well managed publicly traded company is a ground floor opportunity in this "wild west" burgeoning market. EJ has been growing revenue and earnings hand over fist. They are self described as being "asset light," which means they the cash flow comes from their research, services, and sales. They also have a healthy amount of cash on the books to take advantage of any market downturns, whether it's scooping up competitors or investing in distressed properties. While China is not experiencing quite the same degree of downturn as the rest of the world, the financial sector, including the real estate market, are quite sluggish right now. Yet even under these conditions, EJ met estimates and there is every indication that Q3 show continued revenue and earnings growth. When the market rebounds, and the Chinese masses start snapping up properties, EJ may well be one of the best growth stories around and with real estate, there are few limits to their growth in a market like China's. On average, I'm looking for continued growth in the 40-50% range over a very long stretch for this company.

James Balaban, M.D.