Ninetowns Internet Technlgy Grp Co Ltd. (NASDAQ:NINE)
A PRC software company that enables enterprises and trade-related PRC government agencies to streamline the import/export process in China.
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market value is below cash in the bank, so you are literally buying a dollar for $.95.
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way under priced for this high cash flow stock, bargain at $5.50+
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Fear has created a vacuum for a rising stock price in the short/mid term.
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Their B2B plateform is set to dominate the market due to their monopoly in B2Governement plateform, their B2Gov clients will simply be ported to their B2B plateform. Byebye Alibaba :)
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To much cash on the balance sheet not to be trading at $6 before long, still profitable, great margins, looks like a no brainer
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Yes, NINE is a player in the Chinese markets, but the problem is that the PRC is giving away its software product. NINE can only count on selling maintenance and service agreements to earn their revenue.
On top of that, their EPS has been dropping each quarter.
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Manufacturing sector in China is growing from strength to strength forming the backbone to its enviable GDP growth. This flourishing industrial sector is forcing Chinese firms to import raw materials from across the globe. Chinese products are fast capturing market share across the world, thus taking its export volume and revenue to great heights. One of the major hurdles facing this increasing demand is the delay in import and export procedures.
Ninetowns is a specialized Chinese firm providing enterprise solutions to streamline these procedures using internet. The company provides electronic applications; submission and electronic data transfer thus helping to cut down the delay involved. They are the leaders with 90% of market share. Enterprise solutions software sales has been contributing about 86% of market share for the last 2 fiscals with software development and computer hardware sales making up the rest.
As China’s growth story is going to stretch into coming years, so is the need for Chinese products. Thus the import and export scenario is going to get lucrative with more firms, both domestic and foreign joining for a share of the pie. Currently only around 27% out of total registered firms in China is using the online solutions for their import/export procedures. Another important factor for growth is the Three Digitalization Project, an initiative by Chinese government to enhance procedural transparency by making use of internet. This means more firms will be switching over to electronic solutions for their import/export procedures. Since, Ninetowns is the largest player, it is expected to corner the maximum. Thus factoring in these developments, the company share is expected to scale new heights.
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Growth has stagnated due to the governments move on the companies primary product. With that obvious statement out of the way; with a healthy balance sheet, in a growing and dynamic market, not immensely capital intensive I'm placing my bets on UP!
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huge potential. HUGE
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with $3.50 per share in cash, this stock is deeply undervalued
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