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I’ll buy 100 VanceInfo Technologies Inc. (VIT) Shares in 5 minutes May 12, 2008

Posted by deminvest in China stock, growth stock, Internet stocks, investment, nasdaq, Nasdaq stock, Single stocks, stock I own, stocks, VanceInfo Technologies, VIT.
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VanceInfo Technologies is a Chinese software house. I was reading an interesting article about the future of China’s software industry, which is still very small small (about 2 Billions) if compared to India’s 60 Billions Software industry.

Chinese programmers have a great obvious competitive advantage over India’s programmers: Chinese programmers speak the language used in World’s fastest growing economy: China!

Indian programmers need to export the product of their work. They can do it well when selling to English speaking USA, but they are having a hard time developing software for Chines companies.

Suddenly came to my mind an example of a Chinese high tech company that is beating World’s best software engineers on World’s most interesting and fastest growing market just because of its better language and culture knowledge:

Baidu, which is the only company on Earth able to kick Google’s butt.

Once I decided I do want a Chinese software house, I did find a gem:

VanceInfo Technologies Inc. (VIT) that, according to Yahoo finance, has numbers I can’t resist:

P/E around 15

Quarterly Revenue Growth (yoy):114.90%

Quarterly Earnings Growth (yoy):131.70%

Last, but not least VIT has zero debt and cash 78.21M, which is about half of its market value (160M), meaning half of my money is nice plain cash. For the other half I could consider a hefty P/E=7.5.

Let the force be with me, and with Chinese software industry!


1. deminvest - May 12, 2008

Here is my transaction:
VIT VanceInfo Technologies Inc. Buy May 12, 2008 Quantity: 100
Price $10.50 each
Commission 0 ( zero! I’m starting to love zecco!)
total investment $1050

2. Retirein - May 13, 2008

Holy cow! It went up 8% in a few hours after you bought. I’d like to buy some too… but they are now at an all times high. I’m afraid they may be too expensive at 11.35

3. deminvest - June 18, 2009

VIT now has Total Cash: 81.36M

P/E= 27.91

4. I sold 70 Vance Info (VIT) shares today: they’re 40% up since I bought them in May 2008 « Democratic Investments by the people for the people - June 30, 2009

[…] software houses, which ended up losing more than half of their value in a year . Maybe I was right (link). Maybe I was just lucky to hit a well managed software […]

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