Fundamentals of NetEase.com

  • Posted by
  • on January 19th, 2012

In this episode of Brewing Wealth we break down the fundies on Chinese ‘netter NetEase.com

 

Ranked #11 in the BeanScreen, we decided to start a position in NetEase ($NTES) back on Jan. 9 at $42.25. Yes, they are Chinese, so proceed with a little caution if you’re thinking about getting long.

 

1 year chart (Y! Finance)

 

Our New Year’s resolution for 2012 was to refrain from buying any more stock in small-cap Chiners (see $GURE, $CSKI, $TSTC). We feel pretty good about NTES though. They have a market cap of about $6 billion and are becoming a legit player in the online gaming industry.

Here’s a nifty blurb from Reuters about how China’s online gaming market grew by more than 32% last year.

 

source:  China’s online game mkt hits $6.8 bln – Reuters

disclosure:  we currently own shares in NTES, GURE and TSTC

 


The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

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