The entire Chinese Web space has had a big run, which brings it
to our attention on this week's installment of Trading the Globe.
You can seek out value here but remember, these stocks are all
about growth -- and they are delivering it. Facebook's entrance
tells you how important social networking will be in China, not to
mention how important China will be to social networking. It may
end up a very different form of social networking, but how high and
mighty will Facebook be after we have all seen what Beijing can put
) through? A few notes on the big players:
) is not cheap, trading at 63 times 2011 estimated earnings, but
continues to broaden out. This stock is running at a ROE rate above
50% and has been a 12-bagger since hitting its post-recession lows
two years ago. Operationally, its new licensed music service "Baidu
Ting" will keep copyright issues at bay and its new online
advertising system creates an interesting open platform.
offer the best valuation opportunities and ROEs of 25% to 30%.
Perfect World (
) is trading at 9 times 2011 earnings, Giant Interactive (
) at 12.4 times, Shanda (
) at 25 times and Shanda Game (
) at 9.8 times 2011 earnings.
) has 1.8 billion people to recruit into human resource departments
in both online and print formats. Operating margins are great at
27% and there are already 45 million registered users -- and 36
million resumes -- in the system.
) is up 73% year to date even though it is trading at 135 times
earnings. Buy this one on weakness related to the Facebook