LONG...what do you stock guys think?

[GreenDoberman]

Stumbled on this one researching another of my stocks.
It's a Chinese travel internet company. Play on the fact Chinese have more money and will in future.
Just now turning a profit. With estimates of 0.21 this year, 0.32 next year.
It is a company with a 233mm market cap, 155mm in cash and ZERO debt.
Can't have too much downside and seems to be a good grower.

Any thoughts?

 

[Texas-Winners]

i think i got this email too. i do not mess with stocks that cheap, but don't listen to me.


tw

 

[GreenDoberman]

TW,
It was not a penny stock being touted in an e-mail. I found it doing some research.
I think you misread my earnings estimates as the stock prices.
It is around $9 a share right now, and the company is called e-long.

 

[Presto]

Not really a stock guy but FWIW, as you pointed out, the fundamentals look good especially the balance sheet. Institutions are also increasing their ownership. The executives have reasonable salaries. That's a rarity nowadays.

A few things that don't look so good. The first is less important but worth mentioning: insiders have virtually no stock ownership.
The second is the stock is currently close to its 52 week low.
The third is the 3 month chart looks awful going from $14 down to $9.
The fourth is this downtrend is happening with good volume.

Bottom line. The rewards look to be greater than the risks. If LONG can get above say $10.25 and hold for a few days, I might buy a few shares.

ps Great call on JSDA.

 

[GreenDoberman]

Thanks for the input Presto.
It is definitely one I will investigate further.
Their website is unnavigable for me because it is in Chinese, so the info I am getting is strictly from the financial sites.

I agree on the bad points. Hard to see a $9 stock going down so much if they have like $6.50 in cash. I know there is another competitor that is priced in the $60's.
Seems like Chinese economy is flourishing and that could translate to more luxury expenses for the consumers.

I hate investing in products I don't know much about, but may take a small chunk into this.

PS. The JSDA is getting ridiculous, up 5-10% every day. I just got an investment report on it. It was dated March 12, 2007. The price quoted was $12.50, less than a month later it is double that.
Simply a case of seeing a product, liking it, and investing in the company. Classic Peter Lynch investment technique.

 

[GreenDoberman]

LONG just appointed a new interim CEO. I think a management change is a huge plus here and it looks like this stock is bouncing up from its bottom last month.
Definitely a stock that should be a 20% gainer from $9.50 this year and with the right management moves a double in 2-3 years.

 

[Presto]

JSDA was over 30 a couple of weeks ago. I sold mine at 25 about a week ago. Today it is 23. Cramer is saying buy if it goes below 19. I doubt it gets that low. Are the momentum guys done with this one? The shorts can't be having a big impact because there aren't any more shares to be shorted. Does JSDA continue down,is it range bound, or is it gearing up for another run?

I see LONG is at 10 now. The 3 month chart on LONG looks good. If it could just get past 10.5.

 

[GreenDoberman]

Presto,
Big day for JSDA is Thursday when they report earnings. That will determine the short-term trend.

Huge infighting with momentum players and short sellers on JSDA. Lots of volatility in the short-term.

Wish there were options on this one, so we could pull an AMZN-like straddle.