Jul. 9, 2015, 11:25 AM
- With local regulators continuing to scramble to halt plunging equity prices - among other things, investors with 5%+ stakes have been barred from selling shares for 6 months - Chinese markets reversed course last night. Shanghai rose 5.8%, Shenzhen rose 3.8%, and Hong Kong rose 4.5%. The Nasdaq is currently up 1.2%.
- Not surprisingly, U.S.-traded Chinese tech firms are flying higher. Big gainers include Sina (SINA +13.6%), Sohu (SOHU +11.1%), JD.com (JD +8.1%), Vipshop (VIPS +8.3%), Qunar (QUNR +9%), ChinaCache (CCIH +14.1%), Renren (RENN +9.5%), Wowo (WOWO +11.9%), Leju (LEJU +9.1%), China Mobile Games (CMGE +8.3%), Xunlei (XNET +9.7%), Sky-mobi (MOBI +9%), and eLong (LONG +18.1%).
- Also up strongly (previously covered): Qihoo, 21Vianet, E-House, Youku, Baozun, NQ Mobile, Weibo, Cheetah Mobile, Jumei, and Momo. In addition, YY and Dangdang are rallying after becoming the latest Chinese companies to receive going-private offers.
- The Guggenheim China Tech ETF (NYSEARCA:CQQQ) is now up 19% from a Wednesday low of $30.09; it's still down 22% from a May peak of $45.74.
- ETFs: KWEB, QQQC, EMQQ
- Two days ago: Chinese tech stocks crater; many names down over 10%
Jul. 9, 2015, 9:14 AM
- Shares in Youku Tudou (NYSE:YOKU) are rebounding, +13.3% premarket, along with China stocks that finally arrested a slide and made up ground today (though in a landscape of suspended trading).
- In NYSE ADR trading, Youku had lost 20% so far this week and more than 37% over the past month.
- China's taken steps to halt a slide and calm investors, with bans in place against major shareholders selling stock and a pursuit of "malicious" short sellers.
- Also rebounding premarket among Chinese media: Xunlet (XNET +9.9%), NetEase (+5%), China Mobile Games & Entertainment (CMGE +2.5%)
- Previously: China halts stock plunge for now (Jul. 09 2015)
- Previously: YY receives going-private offer from chairman, CEO (Jul. 09 2015)
Jul. 7, 2015, 10:42 AM
- The selloff in Chinese equities refuses to let up: Shanghai fell 1.3% overnight, Shenzhen fell 5.3%, and Hong Kong fell 2.7%. The declines come amid a backdrop of frantic government efforts to halt the plunge, and requests by hundreds of Chinese companies for trading halts.
- The lion's share of U.S.-traded Chinese Web and mobile firms are down at least 5%, and many are down more than twice that. In alphabetical order by ticker, major decliners include Autohome (ATHM -10.6%), Bitauto (BITA -18.7%), Baozun (BZUN -22.7%), ChinaCache (CCIH -14.6%), Cheetah Mobile (CMCM -15.2%), China Mobile Games (CMGE -13.2%), Ctrip (CTRP -10.1%), Changyou (CYOU -12.6%), Dangdang (DANG -13.8%), iDreamSky (DSKY -15.4%), E-House (EJ -15.9%), Jumei (JMEI -20.2%), Leju (LEJU -12.1%), eLong (LONG -12.6%), Momo (MOMO -9.4%), NQ Mobile (NQ -16.7%), NetEase (NTES -12.2%), Qihoo (QIHU -10.3%), Qunar (QUNR -14.2%), Renren (RENN -17.8%), SouFun (SFUN -16.3%), Sohu (SOHU -10.9%), Taomee (TAOM -15.1%), Vipshop (VIPS -9.7%), Weibo (WB -10.9%), 500.com (WBAI -26.2%), Wowo (WOWO -26.7%), 58.com (WUBA -17.3%), Xunlei (XNET -14%), Youku (YOKU -12.2%), and YY (YY -9.4%).
- The plunge seen over the last two months (aided by panic selling and margin calls?) has led multiples for U.S.-traded Chinese tech names to compress dramatically, with forward P/E and P/S ratios often below those of U.S. peers sporting similar growth profiles. The Guggenheim China Tech ETF (CQQQ -9.3%) is down 29% from a May peak of $45.64.
- ETFs: KWEB, QQQC, EMQQ
- Yesterday: Chinese tech stocks tumble again in spite of fresh government support
- Earlier today: Chinese phone firms decline as country's markets sink
- Update: The group pared its losses a bit in afternoon trading. CQQQ closed down 5.8%.
Jun. 9, 2015, 9:46 AM
- China Mobile Games & Entertainment (NASDAQ:CMGE) is up 4.8% on announcing it's entered a deal to be taken private by Pegasus Investment Holdings, for $1.5714 per ordinary share, or $22/ADS.
- With the move up, CMGE American depositary shares are trading at $21.
- The board unanimously approved the deal, which is subject to closing conditions including a two-thirds approval by shareholders
- Form 6-K
Jun. 5, 2015, 7:15 AM
- China Mobile Games (NASDAQ:CMGE): Q1 EPS of $0.42 beats by $0.05.
- Revenue of $71.3M (+106.4% Y/Y) beats by $0.23M.
May 18, 2015, 8:39 AM
- The proposal from Orient Hongtai Investment Management is for $21.50 in cash per ADS.
- CMGE closed at $20.38 on Friday and is currently on trading halt.
Apr. 9, 2015, 3:18 PM
- Only a handful of non-microcap tech companies are posting outsized gains or losses today amid a 0.4% rise for the Nasdaq.
- Notable gainers include 4G modem/M2M module vendor Sierra Wireless (SWIR +5.1%), online money transfer provider Xoom (XOOM +4.6%), authentication hardware/software provider Vasco (VDSI +4.8%), and RFID/electronic document tech provider SuperCom (SPCB +7.9%).
- Notable decliners include a couple of Chinese tech firms that soared yesterday: Sungy Mobile (GOMO -5.4%), and China Mobile Games (CMGE -7.4%). Cheetah Mobile (CMCM -9.8%), a Chinese name that rose moderately yesterday but soared on Tuesday, is also a casualty.
- Sierra has risen to its highest levels since early March, and close to where it traded before tumbling in February due to the mixed guidance provided with a Q4 beat.
- SuperCom is now up 11% since posting Q4 results on March 26; the company missed estimates, but also stated it's open to a buyback and that it has major deals in the pipeline that aren't factored into current 2015 guidance.
- Previously covered: SolarCity/Vivint, Silicon Motion, Solar3D, Smith Micro, Turtle Beach, Taser, Highpower, Paylocity/Fleetmatics/Five9
- Update: Possibly helping Sierra: Today is 2015's IoT Day.
Apr. 8, 2015, 10:58 AM
- Following a big overnight rally in Hong Kong (followed a 3-day holiday during which Shanghai rallied), beaten-down Chinese Internet and mobile stocks have soared in U.S. trading.
- The biggest gainers include many names that are far below their 2014 highs: The group includes Qihoo (QIHU +10.5%), YY (YY +14.9%), Taomee (TAOM +14.3%), Sina (SINA +8.7%), and Weibo (WB +12.1%). Mobile game publishers Sky-mobi (MOBI +12.6%), China Mobile Games (CMGE +8%), and iDreamSky (DSKY +13.4%) are also sharply higher, as are online real estate plays SouFun (SFUN +13.1%), E-House (EJ +6.1%), and Leju (LEJU +9.8%).
- Giants Alibaba (BABA +3.4%) and Baidu (BIDU +4.1%) aren't being left out. Neither are Youku (YOKU +7.5%), 21Vianet (VNET +7.4%), Momo (MOMO +6.8%), Sohu (SOHU +7.7%), Changyou (CYOU +4.5%), Dangdang (DANG +7.3%), Vipshop (VIPS +4.8%), JD.com (JD +3.9%), Jumei (JMEI +6.6%), Sungy Mobile (GOMO +5.8%), China Techfaith (CNTF +7.1%), and KongZhong (KZ +5.5%).
- Alibaba has proposed an asset injection into its money-losing Alibaba Pictures (+36% in Hong Kong) film arm. Sky-mobi has seen Rosenblatt (Buy) hike its target to $11, while noting many Chinese mobile game developers have been bought out; it thinks Sky-mobi's investments in developers could be worth $140M. NetEase has been upgraded by CICC Research.
- Over in Hong Kong, software/cloud services provider Kingsoft (OTCPK:KSFTF) rose 24.2% to HKD$29.50. Messaging/gaming giant Tencent (OTCPK:TCEHY) rose 3.3% to HKD$154.80.
- ETFs: KWEB, CQQQ, QQQC
Mar. 26, 2015, 7:47 AM
- China Mobile Games (NASDAQ:CMGE): Q4 EPS of $0.45 beats by $0.05.
- Revenue of $67.3M (+178.2% Y/Y) misses by $5M.
Mar. 25, 2015, 5:30 PM
Mar. 23, 2015, 3:15 PM
- Today's notable tech gainers include OLED materials/IP provider Universal Display (OLED +5.7%), salvage auction site Liquidity Services (LQDT +6.2%), auto site TrueCar (TRUE +8.5%), touchscreen tech developer Neonode (NEON +10.4%), hard drive assembly supplier Hutchison (HTCH +7.1%), Web site owner/ISP United Online (UNTD +5.5%), software outsourcing firm Luxoft (LXFT +5.6%), optical component vendor NeoPhotonics (NPTN +8.3%), and U.S. solar installer Solar3D (SLTD +15.2%).
- Many Chinese names are also rallying today. Standouts include online real estate plays SouFun (SFUN +6.9%), E-House (EJ +4%), and Leju (LEJU +8.1%), online beauty product retailer Jumei (JMEI +5.9%), online classifieds platform 58.com (WUBA +5%), and app developers/publishers Sungy Mobile (GOMO +4.7%), Cheetah Mobile (CMCM +7.6%), and China Mobile Games (CMGE +5.9%).
- The list of major decliners is smaller: It includes cloud healthcare software firm Castlight (CSLT -4.8%), microcontroller maker Atmel (ATML -3.1%), supply chain software vendor Manhattan Associates (MANH -4.3%), Chinese solar cell/module maker ReneSola (SOL -5.9%), and RF filter tech developer Resonant (RESN -8.6%).
- Universal Display is rallying to new 52-week highs yet again amid Galaxy S6 enthusiasm. Solar3D is now up 42% over the last 3 trading days. Heavily-shorted Cheetah Mobile is reversing Friday's post-earnings losses. Castlight is adding to the losses seen on Friday following a neutral Wells Fargo launch.
- Previously covered: Digital Ally, Sonus, xG Technology, IPG Photonics, CyberArk, Immersion, Nvidia, EZchip
Feb. 25, 2015, 2:57 PM
- A slew of Chinese Web/mobile firms are seeing heavy selling pressure on a day the Nasdaq is nearly flat. Search/security/browser/app store provider Qihoo (QIHU -3.9%) is among the decliners. As are game developer NetEase (NTES -5.8%), game publisher China Mobile Games (CMGE -3.7%), and online real estate plays SouFun (SFUN -3.7%), E-House (EJ -5%), and Leju (LEJU -3.3%).
- YY is also off today, as is 500.com, which disclosed sports lottery license suspensions from provincial authorities.
- Qihoo was hammered last week following a Jefferies downgrade. NetEase is a day removed from announcing it's setting up a U.S. HQ in Silicon Valley to build "a strong pipeline of mobile games for Western audiences from the ground up."
Feb. 4, 2015, 2:05 PM
- In a fresh monetary easing move, the PBOC has cut its reserve requirement ratio for banks by 50 bps to 19.5%, its first cut since 2012. Many Chinese Internet and mobile stocks are posting healthy gains on a day the Nasdaq is near breakeven.
- Carriers China Mobile (CHL +2.3%), China Unicom (CHU +4.5%), and China Telecom (CHA +1.9%) are among the gainers. As are online retailers Vipshop (VIPS +4%) and Dangdang (DANG +5.1%).
- Other notable gainers include online video giant Youku (YOKU +3.9%), mobile game publishers Sky-mobi (MOBI +7.8%) and China Mobile Games (CMGE +2.6%), chat app/social network owner Momo (MOMO +4.1%), microblogging leader Weibo (WB +2.7%), online/mobile game developer NetEase (NTES +2.4%), online classifieds leader 58.com (WUBA +2.3%), and #2 online travel agency Qunar (QUNR +3.4%).
- ETFs: KWEB, CQQQ, QQQC
- Previously covered: SouFun, E-House
Jan. 16, 2015, 12:45 PM
Dec. 8, 2014, 2:51 PM
- Though Shanghai was up 2.8% overnight following positive trade surplus data, Chinese Internet stocks are off sharply in U.S. trading amid a broader equity selloff. The Nasdaq is down 0.9%.
- Major decliners: WUBA -11.9%. QIHU -6.9%. MOBI -6.8%. YY -5.9%. WBAI -7.7%. CCIH -9.3%. VNET -8.9%. JMEI -8.9%. ATHM -8.5%. DANG -6.5%. SOHU -4.6%. SFUN -4.3%. EJ -4.4%. CMCM -6.9%. CMGE -8.3%.
- Valuations for the group are generally much lower today than they were in spring.
Dec. 1, 2014, 10:38 AM
- Chinese Internet and telecom names are among the biggest tech decliners as the Nasdaq registers a 0.9% drop. A soft November PMI print isn't helping.
- Giants Alibaba (BABA -4.3%) and Baidu (BIDU -2.8%) are among the casualties. As is Qunar (QUNR -5.8%), which reports after the bell.
- Other Internet decliners: BITA -12%. QIHU -4.4%. CTRP -4.3%. SFUN -7.2%. LEJU -7.5%. RENN -6.3%. SINA -3.8%. WB -3%. YY -3.9%. VIPS -3.8%. SOHU -3.5%. MOBI -4.3%. CMGE -8.6%.
- Telecom decliners: CHL -3.6%. CHU -3.9%. CHA -4%.
- ETFs: KWEB, CQQQ, QQQC