This is a logical prediction, but keep in mind that stock market is not logical. So all these may be BS.
Long SOHU:
Internet portal is less affected by economic slowdown. Online advertisement is still a cheap way to promote products.
Online game division is growing and also not affected much by economy.
P/E of 10 is not demanding.
Short Ctrip:
Less flights for business, less flights for tourism = Online air ticket agent will suffer
More airlines sell online themselves, become competitors.
P/E of over 20 is excessive.
Both stocks are listed in the US, and are Chinese internet stocks, sector and market risk is thus mitigated.
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Random thoughts on the markets and anything...
2 則留言:
You certainly look more like a fund man to me than a business manager.. haha...all you say look logical... some quite interesting
Well, this trade is losing money as of Feb 11 to now. But I did not really execute it luckily. I know this is not going to work as logical as I think.
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