China Finance Online Co. (ADR) (JRJC)

Great balance sheet and great growth prospects. This stock was beaten down due to a bad earnings report. The company would've posted profits if it didn't pay out the bonuses. Huge upside potential.

50 % of the valuation is cash.
The corrected P/E ratio is between 5 and 6.
What an undervaluation

China is encouraging investment amongs its new middle class and this company assists users in evaluating stock market trends and corporation performance. Its a winner.

China neverending potential

SaraGen - Target near 20?

low p/e (sub 10) for a growing China investment reseach company -- the fool of the middle kingdom.

a china internet company at a low stock price...think about it

what negative earnings surprise? which earnings are you looking at? i'm looking at the most recent quarter where they blew out earnings and then guided conservatively so they will now will also blow out next quarter as well

this stock is now trading for far below 10x earnings and it is dirt cheap vs its larger peers

strong buy

First off, this was originally an advertising revenue website. Now, however, it is subscription based.

Two, half the market cap is cash. That P/E of 10 is really 5.

Three, it is profitable has 100,000 subscribers and has been putting on 25,000 over the last 2 quarters.

Four, financial information is contrary to the market. If things are going bad we want more information not less. Subscribers have continued to be added even though the Chinese market popped. It's the fear that makes us interested and there's plenty of that around at the moment.

Five, this is serving the Chinese readership. The majority will be in China and are, at least, partly insulated from the recession by the stimulus package and strong Chinese growth.

Is that enough to be getting on with?

JRJC's efforts are currently coming to fruition. The numbers speak for themselves and the last three or four quarters of revenue and earnings accelleration is phenomenal. They are clearly doing something right and it's certainly got my attention. I also believe the brokerage acquisition is a good move on their part to provide steadily improving incremental revenue. It's all about garnering market share and the Chinese market is huge, dynamic and evolving in a positive direction. Financial markets are also nascent in China and represent a new vice, as well as a new way for the Chinese to invest for the future. It's not one they probably understand all that well yet, but given their propensity for gaming, one they have and will continue to embrace. As more Chinese emerge from poverty into the middle classes, more of their 1.3B strong will be placing their financial futures at hands of their various markets. I've recently taken out a small position and averaged lower on the dips. This is one stock that when the market re-bounds, will likely triple or quadruple from it's present valuation and if the revenue momentum continues, it will certainly be one of the really big winners IMO over the next 5-7 years. The margins are good and they've clearly find a niche into which they are rapidly expanding.

JBB

+

China is on the up and up. People are becoming more financially responsible. This stock will not sit on the global sidelines. *Real player*

Based on the most recent results, I get $21.2 million in FCF for the past nine months. That works out to a run-rate of just under $28.3 million, and a probable price-to-free cash flow ratio of 17.

Now, no analysts are on record with 5-year predictions for growth. Really, there's just one guy out there, spitballing a 120% growth prediction for next year. But here's the thing. Take that analyst's prediction of $1.61 per share next year, but assume it takes not one, but five years for CFO to get there. Want to guess what that works out to?

That's right: 17% compound annual growth. Meaning CFO is fairly priced (P/FCF/G = 1.0) if it takes five years to hit next year's target, or if it hits it, then flatlines for the next four years. Either way, this looks like a pretty wide margin of safety.

Maybe a day late pick, but still think momentom will shove far enough for this sort pick. will be watching closely for R W purchase.

Decent cash flow, very little debt, impressive deferred revenues averageing out to about 9 million a quarter. The recent deal with CT in January will only help as they expand their telemarketing force.

Going--going--going--Get in now!

CLOSE TO 400% GAIN IN 2007

This stock was picked by TMFBrich for the 2008 Stockpicking Contest.

Way overvalued