YOKU and DANG are going get listed on NYSE today.
YOKU (China's version of Youtube) is the leading player in China's online video market, boasting a 40% share of user time and over 260 million unique visitors per month. The company licenses professional content such as movies and TV shows, which account for the majority of traffic, as well as user-generated content. Like its US-based counterparts, Youku generates revenue from ads placed on its site by both domestic and global companies, which include Procter & Gamble and Coca Cola. Though Youku is still losing money, it booked a positive gross profit in the most recent quarter, and its scalable online platform should provide for rapid margin expansion as it benefits from the fast-growing online video market (76% CAGR through 2013).
IPO Details
Deal Size - $146.0 mm
Price Range - $9 - $11
Shares Offered - 15.4 mm
Lead Manager(s) - Goldman Sachs (Asia)
Recommendation - I am not going to jump on it as there will be a lot of hype involved with this IPO. I also think it is going to open way above the range. I am going to put it on my radar and will trade accordingly.
DANG (China's version of Amazon) - E-Commerce China Dangdang was founded in 1999 by a husband-and-wife team with experience in the publishing industry, and is now the country's leading online book seller with an impressive 50% share. Over the past decade, the company has expanded its product offering to include over 590,000 book titles, developed a nationwide distribution network of 10 warehouses, built brand recognition and developed a loyal customer base (repeat customers were 78% of YTD sales). Going forward, E-Commerce China Dangdang plans to focus on general merchandise products such as beauty, personal care and home decor, and is well-positioned to benefit from China's rapidly growing e-commerce market, which is forecasted to hit $30 billion by 2013 (90%+ CAGR
IPO Details - DANG raised $272 million by selling 17 million ADSs at $16, above an upwardly revised range of $13 to $15. The company originally filed with a price range of $11-$13 per ADS. The $16 offer price, which represents a 33% increase from the original midpoint, puts Dangdang's fully diluted market value in excess of $1.3 billion. Often referred to as the Amazon.com of China, Dangdang generated $218 million in sales in 2009, an increase of 90% over 2008. In the first nine months of 2010, the company's sales jumped 56% to $235 million. E-Commerce China Dangdang is expected to open for trading on Wednesday on the NYSE under the symbol "DANG". Credit Suisse and Morgan Stanley acted as lead managers on the deal
Recommendation - I am not going to jump on it as there will be a lot of hype involved with this IPO. I also think it is going to open way above the range. I am going to put it on my radar and will trade accordingly.
Other Chinese IPOs - LEDS, TUDO (YOKU's competitor), China Shengda Packaging Group (CPGI), film distributor Bona Film Group (BONA), auto retailer Lentuo International (LAS) and mobile application store Sky-mobi Limited (MOBI).
A general Caution and Advise -As I always advise in my posts, Do not chase stocks. please keep in mind that I am not a Stock Market Analyst or an Investment Adviser to count on my recommendations/alerts. As always please do your DD before investing or speculating, start with a small position, always keep your stop losses in place and emotions out. Finally thank me for your profits but do not blame me for your losses because you are the one who pulled the trigger!!!
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Who is Mr.Incredible?
- Mr.Incredible
- New Jersey, United States
- Mr.Incredible is a Momentum/Technical Breakout player who trades small/micro cap plays and who saw a 600% Growth since 2006, Yes even in this down market. I am going to post my real trades (including profits/losses) soon...As a general caution and advice Please start with a small position and always keep your stop losses in place just in case....As usual Do your DD before investing. Thank me for your profits and don't blame me for your losses because you are the one who pulled the trigger!!!
what are your thoughts on urg here?
ReplyDeletethanks
-Cashese
Hi Cashese - I am still holding on to URG. I actually added couple of thousand at @2.17 today. This is not for day trading. You will be nicely rewarded if you hold it for a few months. I am confident that it will easily double by next Feb.
ReplyDeleteBTW, I said I am not going to jump on YOKU or DANG but I was so tempted and bought 1K DANG at $29.5. I think we are going to see $34 tomorrow. Will get out of it at that price or if I see reversal I will take a small loss. I think if you carefully follow the trend of these two stocks you can make some quick buck on them.
Good luck
I was gonna jump on yoku at 27 but didnt have enough equity to make it worth it. But shit 100 shares....... its at 34!!! Thanks on urg i added some as well as i had none
ReplyDelete-Cash
Regarding Uranium - The spot price is going to shoot through roof in the future. The recent downtrend is due to correction and accornding to a report - "In the past week, buyer interest diminished and while purchases are still considered, parties looking to buy substantial quantities are exercising significant discretion. On the supplier side, prices are holding firm as near-term supply stocks have been reduced by the recent spate of buying activity."
ReplyDeletehttp://www.commodityonline.com/news/India%E2%80%99s-pact-with-France-to-lift-uranium-prices-34229-3-1.html
Buy as much as URG, URRE, UEC, and some other value uranium picks as you can. This is going to be like gold. Once we get to the parabolic trend, I can confidentally say that we will see 50% or even more profit margin on these picks. Again before jumping on any recommendations, please do your DD and take your risk appetite into consideration.