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

Increasingly Excessive P/E

Overall, China travel has huge upside!!

Will be a good company to invest in one day, but not at PEM over 100.

Multi-year play on middle income china growth, more travel, more disposable income etc.

Key element right now is that you get to buy this thing near cash value so the downside appears limited with 30% top line growth.

Can't argue with the facts. Chinese travel is going to grow exponetially, and elong will benefit.

Concurrent to ctrip and will be probably buyed by them. Technically very practical to use, great latest technologies use and for internal flights in china the flights are cheaper than on Ctrip. With the olympic games coming their revenue will increase.

Long term play. Much weaker than CTrip, a clumsy, distant second, but will ride on CTrip's coattails up to the Olympics. Then may be bought out by a larger rival, so this stock is a good buy and hold.

The recent flurry of high profile exits among Expedia's international businesses leaves this stock at a severe disadvantage for at least the next two years.

Great potiental on the long run

Likely to be taken over, maybe by CTrip.

Cash represents approx. 75% of market price.

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!

Top 5 reasons.

1. Working with expedia
2. Chinese Olympics
3. Low cost stock
4. Recommended by Fool
5. Because if you buy it...it helps me.

Current Price: $10/share

Book value: $6.33/share

Cash: roughtly $120 million in the bank

Current market cap is only 225 million

The number 2 travel website in China with it's main headquarters in Beijing, elong will post strong earnings in 2008 as a result of the added tourism of the 2008 Beijing Olympic games

It's like a relationship between Coke and Pepsi(maybe I exaggerated a bit here), but there is always a room for the number 2 player. The market is just too big, Elong will be okay and get to the green numbers. I see a good potential of a short term fast gain in this stock and/or a good long term investment.

Software screening pick found mutable strong bullish signals.

Another one of pops cheap chinese stocks that will no doubt get its share of the billions spent in 2008 travel.Although pops and grandma are BIG fans of the fool and he is right (CTRP) at $50 a share is the top dog looking for the gold medal,but at $8 or under a share and listed in the top three and growing,this one gets the pops 360 all around look,and maybe the bronz come late 2008.I travel to china often and this one makes pops list of cheap but under estimated chinese stocks.

Big market. Good customer service. CTRP is the big dog, but plenty of business for others, especially with the Olympics coming to China next year.

I shrt term, this stock will at best stay the same, likely go down.

contra fool