ChinaNet Online Holdings: Bound To Fall Back To $1 A Share
- ChinaNet Online Holdings skyrocketed from $1 per share to a high of almost $4 per share on news that they are cooperating with Baidu and are in talks with Taobao.
- The public relations that ChinaNet Online Holdings put out last week detailing talks with Baidu and Taobao is not substantial enough to justify the tripling of the companies market cap.
- This price action follows the trend of many Chinese companies that have skyrocketed on news stories only to fall back to the prior levels in the coming days.
- ChinaNet Online Holdings gross profit on internet advertising has been cut in half when compared to the same quarter last year.