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(NTES): should I invest on Chinese internet growth stock Netease.com? September 20, 2006

Posted by deminvest in growth stock, Internet stocks, investment, NTES netease.com, Single stocks, stock I own, stocks.
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Chinese Internet Users Wall Street has its wonders. Netease.com is one:

  • growing fast
  • booming dot com in Chinese exploding internet market,
  • low P/E around 16,
  • coffers full of cash.

 

NTES’s price is so cheap that Netease.com is buying its own stocks on a large buyback plan, which is very unusual for Internet companies.

But what does Netease.com do? You are welcome to find out yourself on their website… Not easy right? They are so centered on Chinese market, that they don’t even have a page in English.

From what I could understand, NTES is like a Chinese Yahoo (never mind yesterday’s fall of Yahoo stock price). It has a portal, webmail, ecommerce services and stuff like that.

I basically like company numbers, cash and growth:

Trailing P/E: 16.55 good

Forward P/E:13.78 even better

Qtrly Revenue Growth (yoy):40.70% lovely

Qtrly Earnings Growth (yoy):29.40% nice isn’t it?

Well if you like those figure, also look at 0 debt and

Total Cash: 454.60M which is a lot if we relate it to the market cap of netease.com: 2.17B

This means that if I’ll buy NTES, I am also getting a share of this cash, which will probably be used to buy stock of the company itself, making its stock rise.

 

Comments»

1. deminvest - September 20, 2006

I bought $1000 worth of NTES. If you will too… let the force be with us!

2. len - September 21, 2006

good luck deminvest!

3. I just sold 45 Netease (NTES) @ 24.89. Why did I? « Democratic Investments by the people for the people - May 14, 2008

[…] I want back my invested $1066 that I spent in September 2006 when I bought 60  Netease shares at $ 17.77 […]


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