Prohost Biotech submits:
After all we wrote about Sequenom (SQNM), it looks as if we are somehow destined to further tackle this firm. Sequenom’s story is still unfolding. What happened to this firm’s stock this month reflects a general reality that goes beyond Sequenom, on Wall Street and off Wall Street. When some influential leaders decide to become misleaders, sincere observers and followers must develop protective strategies that help them accept or reject what the influential try to feed them. In the stock market, negative speculators have the advantage of possessing a superior weapon called fear, which positive analysts do not really have. Under some circumstances, by definition, negative becomes the synonym of fear. When people fall to fear, they cannot wait for rational explanations of negative speculation. They believe they have no time to lose in resorting to common sense. They feel compelled to escape from the source of their fears. In the stock market, this translates into selling the stock that somebody labeled as bad.
Assessment of public firms by positive and negative analysts is the kinetic energy behind the millions of shares traded daily, which makes the stock market so interesting and attractive. The war between the two opposing groups is excellent for traders who know how to synchronize their buying and selling with optimistic and pessimistic articles. Serious investors, though, those who really care about investing in promising firms, must have a plan to protect themselves from developing unfounded fear or baseless euphoria. The plan is simple. Look for facts that support the claims.
Complete Story »
Xiaofan Zhang submits:
The June 11 kick-off of 2010 Soccer World Cup is rapidly approaching us. I believe this mega sports event provides investors with great opportunities to trade Chinese Web portal stocks including Sina (SINA), Sohu (SOHU), Tencent (TCTZF.PK), and NetEase (NTES). Recent history has demonstrated mega sports events’ positive financial impact on Chinese Web portals. Sina Corporation is my favorite stock to play the World Cup theme due to the fact that it has the highest exposure to online ads among major Chinese portals.
What can we learn from history? In the past, mega sports events proved very effective in stimulating advertising spending on Chinese Web portals. For example, the 2006 World Cup (June 9-July 9, 2006) was a major catalyst for Web portals’ 2Q06 and 3Q06 financial results. Thanks to the event, in 2Q06, Sina, Sohu, Tencent, and NetEase grew online advertising revenue by 45%, 35%, 29%, and 150% year-over-year, respectively. In 3Q06, Sina, Sohu, Tencent, and NetEase grew online ad revenue by 42%, 27%, 14%, and 132% year-over-year, respectively. The 2008 Beijing Olympics was the major catalyst for 3Q08 results: Thanks to the event, in 3Q08, Sina, Sohu, Tencent, and NetEase grew online ad revenue by 66%, 66%, 72%, and 32% year-over-year, respectively.
Complete Story »
China OTC Player submits:
China MediaExpress (
CCME) announced its FY2009 results Tuesday, and it is very clear from market action that investors are liking what they see. The earnings highlights are as follows:
- Revenue increased 52.3% to $95.9 million
- Gross margin was 65.7% for the year and an excellent 68.9% for Q4
- Net income increased by 58.2% to $41.7 million
- Cash position at the end of 2009 was $57.2 million
In addition, the company is expecting a very strong FY2010. Net Income is expected to come in between $71 million and $75 million, and this excludes the impact of "any possible acquisitions, addition of new buses and new investments in other media projects in 2010".
If this projection holds, we’re talking about a 2010 fully-diluted EPS of $1.75 to $1.85, representing a net income growth of 70%-80% YOY. My previous estimates of CCME’s 2010 EPS was $1.73, so this is very much in line with my expectations. Still, bearing in mind possible accretive acquisitions, this estimate could well be on the low end.
Complete Story »
Stephen Castellano submits:
Like some others, I am a bit surprised by the continuing strength in the market. Our emotionally driven caveman-era brains are still waiting for some other shoe to drop. On the other hand, I believe I do understand a portion of what is going on, based on my work with developing basic quantitative relative-value models. Maybe we will even see another 20% move higher in the market indices.
Many quantitative models do not care what is happening in the economy, the unemployment rate, or if a health care bill was passed or if taxes are going up. And these stocks do not care about stock prices — where prices were yesterday or a month ago. Instead, these programs look at a multitude of fundamental metrics from a bottom-up and relative basis to every other stock. If a company’s reported fundamentals are improving and if sell side analysts are raising estimates and raising targets, these programs are going to buy these stocks.
Complete Story »
Investing, Long Term Investment, stock market | admin March 24, 2010 | 
Comments (0) 