Chimin Sang

E-House Holdings IPO Offers Investors Risks, Rewards

I don't like the valuation of this company.

Q1 it made 4.4 million; it expects to make 6.0 to 6.5 million in Q2. An educated guess for the full year is probably 25 million, compared to 18 million last year.

Total shares 75 million, that gives 33 cents EPS for 2007. The current price made a 54x 2007 PE, however, its growth ratio is only at 40% this year.

The stock has to be cheaper to attract serious investors.