eLong, Inc. (ADR) (LONG)

The pitch below shows you that you can live in the country where the gloom and doom is happening and still miss the party. What I see here is the chinese version of priceline.com.

Short term will go down.

This account tracks the performance of the investment firm Ruane, Cunniff, and Goldfarb - the investment manager of Sequoia Fund.

LONG's loss not only widened (-.08 to -.80), but its growth has stagnated. Those holding long term have been banking on the Olympics to give eLong the boost it needed to become profitable, but this has obviously not happened.
Furthermore, The 50% drop in Chinese markets since January has robbed the middle class of expendable money for travel.
The outlook is not good. Investors will flee this company faster than foreigners fled China during the SARS outbreak.

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.

$173 million market cap and sitting on $153 million in cash as of 9/30/2007 with little debt. This one seems cheap when compared to its larger competitor CTRP. The upcoming Olympics in China should increase travel which LONG should be able to benefit from.

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!

They have a new promising CEO in place and sound fundamentals. And with the Olympics drawing close i'm predicting better times lie ahead for this company.

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.

Seem pretty expensive for how much it makes and I think the Chinese market is going to deflate.
A lot.

olympics in china...online travel agency in china...you do the math...while ctrip is the better long term bet, most will participate in the ST gains from the above

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.