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sorry sorry sorry I could not resist: I bought 125 (ASIA) AsiaInfo shares… What is it? February 6, 2007

Posted by deminvest in ASIA Asiainfo, growth stock, Internet stocks, investment, nasdaq, Single stocks, stock I own, stocks.

I don’t really know.

Apparently ASIA is a Chinese software house which has 800 workers and develops software mainly for Telecommunication companies. I was not supposed to buy any more stock this month. I allow myself only to one buy per month but I do often lack in self discipline (like many other simpletons like me do).

I think I bought it for two reasons:

1) I thought it is a bargain: ASIA has market cap 343.82M and cash 150.46M, meaning that half of its price is made by cash it owns.

2) ASIA is growing fast: Qtrly Revenue Growth (yoy): 62.00%

3) ASIA recently switched from losses to gains, which is good 🙂

4) It is an old glory. A stock that in the good old times of the first bubble was around $ 100 can be bought around $8 now. A bargain (… I’m joking)

I should have been more cautious because:

1) My knowledge of this company’s business is very limited

2) Even though ASIAINFO HLDGS INC (NasdaqGM:ASIA) went from losses to earning on last quarter, it does still have a P/E = 60, which is not very cheap.

Let’s hope this company will continue growing its revenue and will at the same time boost profitability, making me and a few other proletarian investors, rich 🙂


1. deminvest - February 6, 2007

I bought 125 ASIA at 7,9899 five minues ago, spending a total of $998,74.
Please Wish me good luck… Considerin my decisioning process outlined above, only luck can help me with this stock!

2. len - February 9, 2007

good luck then and pray hard the company keeps on earning.. and china in itself is a huge market.!

3. deminvest - February 9, 2007

yes China is a huge market, growing fast, but it is also very risky because of inefficient regulators and a very “strange” legal system. An investment in China gives great opportunities, but it is very hard to protect it.

4. len - February 12, 2007

and what market does not have risks in it? the reason i emphasized the huge market is that somehow the company will find a niche or a share in it and be able to earn enough profits. it goes with an assumption that they also know how to play that market environment and protect the investments.

5. Yehh - February 20, 2007

You’re only having “buyer’s remorse.” But don’t worry, this is a great stock on the rise. You will make a lot of money. Hang on to it.

6. deminvest - February 20, 2007

Thanks for your positive attitude!

Do you know this stock well? Why is it great in your opinion?

7. Ok now is time to sell ASIA shares (47% up!) « Democratic Investments by the people for the people - October 29, 2007

[…] 89 ASIA shares at $ 12.10 each casing in $1076.9 . I had bought 125 at $8.14 each spending $1017.5. So I made some extra cash and I still have 36 ASIA shares that I got for free and will try to hold […]

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