But I will say them anyway. You have a dividend declared, an outstanding earnings and revenue report, an equity stake from a notable Chinese media company and an upcoming IPO to unleash shareholder value on the fastest growing part of the business.
And the stock is down about 30% in 9 trading days. Go figure.
Right now all this market wants to see is the uncertainty swirling around concerning how much of a slowdown we see in the Chinese economy. We are now faced with having to see if EJ and SFUN can build a new base in terms of the stock price. Both came off the recent highs in dramatic fashion, and the volatility has also increased dramatically. Both went right through the 50 day, and SFUN tested the 200 day earlier today. No one knows how this ends up, but I would suggest that the 50 day will now become resistance until a solid base is built for what hopefully turns out to be the next leg up. And hopefully the 200 day serves as support on the downside. Personally, I have faith that Tenents recent investment is indicative of long term value in the Chinese market. For that reason I want a core position, and will then invest other funds on a short term basis around the 200 day and 50 day until this base building plays out. If it was easy everyone could do it, but investing your own money is never easy, and always gut wrenching. Hopefully more days are fun than not. KSN was right in one of his earlier posts, for now the stock is broken, and that won't change until we see some strong trading day finishes, that may take some time, but it doesn't mean you can't make some money along the way. There are times to be an investor, and times to be a trader. I want to be both in this particular stock. I don't think the long term growth is finished, but it will most likely be choppy from here on out. Just one man's opinion.
Perhaps SFUN is getting a more severe spanking in that this recent move by EJ to have Tencent on board gives EJ more ammo from which EJ can launch an assault of sorts on the number one player in online real estate Ecommerce, SFUN. Throw in a dividend, and the unleashing of the value of Leju, and you have a double and triple whammy.
I think what most feel now is that for the Chinese economy, bad news IS GOOD NEWS. What will happen is that the more bad economic news that comes forth will allow them to unleash a stimulative package to bolster the economy. Knowing that this is most probably coming is the reason the Shanghai Index has bounced 4% the past few days. That, and the fact that the Index is at an extremely low PE valuation,