Replies to post #916 on CDC Corporation (CHINA)

[EZ2]

Sector Snap: CDC Jumps on Buyback Update
Friday December 28, 12:33 pm ET
By Rachel Metz, AP Business Writer
CDC Shares Rise With Share Buyback Update, Perfect World Rises After Launching Expansion Pack


NEW YORK (AP) -- Shares of CDC Corp. soared ahead of the Chinese Internet sector Friday after the gaming and software company said its directors and executives repurchased about 468,000 of its shares under a prearranged trading program in the last nine trading days.

CDC shares rose 97 cents, or 23.6 percent, to $5.08 in high-volume trading. In the past year, the stock has moved between $3.69 and $11.45.

The buyback adds to the 366,000 shares CDC had already bought back in the current quarter for $2.3 million.

In a phone interview Friday, Pacific Growth Equities analyst Derrick Wood said the share buyback news was a catalyst that caused the stock to rise.

Wood said that the company's specific mentioning of directors and executives buying back the shares surprised him, and shows investors that the buyers have confidence in the company.

"I think that the heavy insider buying as of late has certainly helped people understand the stock is probably undervalued and has been oversold," he said.

Meanwhile, American Depositary Shares of online gaming company Perfect World Co. rose 14 cents to $28.13.

Perfect World said Friday that it released a new expansion pack for the game "Legend of Martial Arts" on Dec. 20 called "Born to Be King." The pack includes new rewards and new content including "Clan Base System" and "Advanced Territory Battle System."

Competitor The9 Ltd.'s ADS declined 55 cents to $21.76, while NetEase.com Inc. declined 9 cents to $18.94.

Elsewhere in the sector, shares of Chinese Internet portal operator Sohu.com Inc. shed 29 cents to $53.85, while rival Sina Corp. declined 90 cents to $44.05.

[MrBankRoll]

A little comforting to know that the insiders are still confident.

[EZ2]

HNY !!!!

Zacks.com
CDC Corp. Remains a Buy
Monday December 31, 9:58 am ET
By Paul Cheung, CFA

A recent pullback in share price on Chinese Internet content provider CDC Corporation (NasdaqGM: CHINA - News) appears to provide a good entry point, according to Zacks senior Chinese market analyst Paul Cheung, CFA:

\'CDC\'s revenue for the third quarter of 2007 increased 27% year-over-year. However, its adjusted EPS missed market expectations by four cents due to lower revenues from its online gaming business and its wireless business. We still think CDC is well-positioned to leverage the growth opportunities in small-to-medium business enterprise software market and China\'s online game market.

\'In addition, its stock is trading at a lower valuation than its peers. Overall, we don\'t think its current stock price fully reflects the company\'s intrinsic value. Therefore, we are maintaining our Buy rating on CDC shares.

\'Based on our estimate for fiscal year 2007 earnings per share, the stock is trading at 15.8x, which is much lower than the industry mean. Based on our estimate for fiscal year 2008 earnings per ADS, the stock is trading at 14.7x, which is also much lower than the industry mean. Using a P/E multiple of 18.0x our fiscal year 2008 earnings per ADS estimate of $0.28 yields a target price of $5.00, which can reflect company\'s great growth prospects, in our view.\'

Read the full analyst report on CHINA.