VNET's TRUE value is now about $30 per share -- here's why
With the stamp of approval from Microsoft to conduct all of Microsoft's business in China, VNET has now gone from being just another China play to being on par with the likes of Equinix, Inc.(EQIX) in the USA. A quick glance at PE ratios for EQIX shows it trading at $192.00 per share at a forward PE ratio of 42.05. Meanwhile, VNET only has a forward PE of 15.10! CLEARLY it should be trading MUCH higher, especially since Microsoft just hired them to handle ALL of their cloud business. According to forward PE ratios, VNET should be trading at around $30 per share MINIMUM but it has not been because of skepticism about Chinese stocks but the Microsoft deal is now a DONE deal and the stamp of approval has been confirmed. Add to this the fact that the guys running this company are the same ones who started ACER computers and I'm sure we have a bonafied winner here. I am long VNET and I will NOT be selling for anything less than $30 per share.
I agree...I am in an putting this one under my mattress. I can't see the Microsoft and VNET partnership not being very profitable for years to come. Cloud computing is a hot industry and Microsoft claiming 2/3 of all software in China pirated. Microsoft should give a nice boost to VNET's earnings.