|
CHINA - (recommended
to subscribers
on 8/28/05)
BOUGHT
at $3.13 SOLD
at $6.28
On August
19th 2005 CDC Corporation, a provider of enterprise software and
services to medium and large businesses, as well as a provider of
wireless services and internet media, reported 2nd quarter 2005 revenue
of $64.6 million, up 44% from the $44.9 million reported in the 2nd
quarter of 2004. Net income was $36,000 or 0 cents per share which
compares to a net loss of $2 million or 2 cents per share in the 2nd
quarter of 2004. Gross margins were 56% which compares to 58% in the
year ago period.
The company said it expects growth in the 2nd
half of 2005 as it rolls out more 2.5G mobile products. The company
also expects traffic gains at it's internet portals will attract more
advertising dollars in coming quarters. CDC's enterprise software
subsidiary reported it's highest quarterly total revenue in five years
during the just completed 2nd quarter.
In fiscal 2004 no single customer accounted
for 10% or more of total revenue.
CDC Corporation has cash and investments worth
$247 million or $2.22 per share. The company has $26.5 million of debt.
The net cash position ($247 million - $26.5 million) is $220.6 million
or $1.99 per share. Book value is $1.54 per share. At the current price
the stock has a low price-to-sales ratio of 1.5 and a price-to-book
ratio of 2.
Above is a 2 year chart of CHINA with the 200
day moving average. Just over a week ago the stock showed strength by
breaking above it's 200 day moving average, the first time in more than
a year. The recent pullback with the overall market looks like a buying
opportunity.
10/17/06-
SOLD AT$6.28 FOR A GAIN OF 101%. DURING THE SAME TIME PERIOD THE NASDAQ
WAS UP 10%.
Next
Closed Pick
Back to Closed
Positions List
|
