China Growth Stocks

[ratobranco]

DANG / YOKU - it's crazy. Typical hedge fund games, like we saw with MCOX recently, and even SCOK awhile back.

Those companies are priced at internet bubble valuations. The average P/S for an internet stock at the height of the internet bubble was around 45X, YOKU is at 50X.

Right now, it's like every company is playing the "we are the X of China" game to secure large amounts of capital at attractive multiples. BIDU was the GOOGLE of China (legitimately), now DANG claims to be the AMZN, YOKU the Youtube--this is nothing but a bunch of hype used to raise money.

Herb Greenberg was even joking about the NFLX of China. When is that going public in an IPO? How about the Salesforce.com of China? It's just silly.

So I think those names are fine for a trade, especially if you got in on the IPO, but to buy one of them as an investment is insane IMO.