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E-House (China) Holdings Limited Message Board

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  • ksn_44 ksn_44 Feb 27, 2008 11:54 AM Flag

    Earnings date???

    i'm sour on the stock and that is an understatement. oh, the alliance is real, but nothing is monetized off of it so it is mostly a bunch of fluff. nice hype though, wouldn't be surprised if something really negative came out in the next week though based on what they did last time. in fact, ANY good news from here on out is to not be trusted and sold on a pop.

    you should have tight stops on all third tier chinese outfits with shady ownership. i personally have screwed up twice now with these low level chinese companies. i think most folks will be dumping on any upside, at least for the next 6 months to a year while the effect of the dilution abates. i would not be surprised at a new 52 week low here if the overall market takes a big hit. we're officially bagholders.

    someday they will finagle it to rise again with a more substantive announcement, and then follow it with more dilution, be sure of that. they're going sell out to keep doubling revenues, they have to. i don't know when it will go up again, but i am pretty sure it won't last long and you'll have to be nimble to get your money out. no place for anything but the high risk part of your portfolio. just my opinion, but you can smell this one, even on your computer screen.

    anything that China Miracle guy Hsu says is mostly garbage, he makes his own decisions long before he tells us, but i must say, he has quite a gig going. he is what you would call a "modern day p t barnum-type huckster".

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    • I must respectfully disagree (at least at this point) with the conclusion that EJ's recent secondary offering will be dilutive to the share price. While it certainly may prove to be the case, only time will tell whether the transaction is truly "accretive" or "dilutive" to the existing shareholders.

      If management is able to invest or employ the new funds in such a manner that the return realized on those funds is higher than the return that was being realized by the company prior to the secondary offering, then the transaction will prove to be accretive to the old shareholders and management should not only be applauded for the secondary, but should probably be encouraged to enter into another such transaction if it is anticipated that the return realized on the new funds will be greater than the average rate of return realized on the IPO and the secondary offering. Of course, if the secondary funds are invested in such a manner that the overall rate of return realized on the secondary funds is not as great as the rate of return that the company was experiencing immediately prior to the secondary offering, then the transaction will prove to have been dilutive to the old shareholders.

      Again, only time will tell. Quite honestly, it appears to me that management has done a pretty good job overall building a strong infrastructure for this organization. Are they perfect? Absolutely not. But, based on their operating achievements thus far, I am willing to give them the benefit of the doubt for now.

      Again, let me stress that my comments are not meant to be antagonistic or mean spirited. I only seek to offer another perspective from a CPA's point view.

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