eLong, Inc. (ADR) (NASDAQ:LONG)

CAPS Rating: 1 out of 5

The Company is an online travel service provider in China. It utilizes a centralized modern call center and web-based distribution technologies to provide our services.


Player Avatar sfarley1 (< 20) Submitted: 1/6/2008 9:57:07 PM : Outperform Start Price: $7.89 LONG Score: +81.79

eLong has a prestine balance sheet with $164 million in cash, no debt, and just a $200 mil market cap. US based stocks are under a ton of pressure right now and elong actually is a safe value play. At the same time it is in the white hot Chinese Internet industry. They are the #2 travel play in china behind Ctrip. They have 2000 employees vs Ctrips 5550. The most important stat is that their market cap is just $200 million versus Ctrips $4 billion. eLong is bound to close this gap. I think smart money moves out of Ctrip and into eLong in 2008 as the Beijing Olympics approach. Barry Diller from Expedia/Interactive Corp has start a turnaround at eLong. His Expedia division owns 52% of the stock so they want to see it go up so it can be a multi billion dollar holding for them. The $164 mil cash cushin is a big time floor on the stock. It can;t go much lower but it can go much higher!

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