Skip to main content

January 2007 Pick o' the Month - PacificNet (PACT)

With this month's pick I am continuing a trend of identifying lesser-known stocks that are undergoing a reversal and appear to be moving up.

Stock markets have been red hot in China and India for the past year. This month's pick is a Chinese stock, PacificNet (PACT). The TradeRadar BUY signal was first flashed on 12/19/06 at $5.23. Since then, the stock has seen more good news and has moved up to $6.18 as of the last trading day of 2006. To see this TradeRadar BUY signal, click here. Note that the signal strength is pretty decent and the signal shape is quite well-defined. This leads me to believe we have a real reversal underway and that the newly established trend upward will continue. PACT has exhibited plenty of volatility over the years though so I am sure the path upward will not be smooth.

PACT had recently taken a hit as a result of taking charges for exiting a business segment related to telecommunications. They are continuing with their involvement in providing CRM products and services for large companies doing business in the Asia-Pacific region. They currently have a roster of clients that includes Motorola, Nokia, HSBC, American Express and China Telecom.

More significantly, they are now concentrating on electronic gaming in the region, especially Macau, and have recently landed some contracts from major casinos there. This upswing in business activity is lending credence to the message management gave concerning focusing the company on areas of higher growth. Macau is projected to surpass Las Vegas in total gambling revenue within a year or two and, in anticipation of this, PACT has established an office in Macau which, it appears, is already beginning to yield fruit.

PacificNet employs over 1,400 people in its various subsidiaries throughout China with offices in Hong Kong, Beijing, Shenzhen, Guangzhou, Macau, and branch offices in 28 provinces in China. It is headquartered in Beijing and Hong Kong.

Comments

Popular posts from this blog

Brazil - in a bubble or on a roll?

A couple of years ago, no one recognized the real estate bubble even though it was under everyone's nose. Now, analysts and bloggers are seeing bubbles everywhere they look. One of them, they say is in Brazil whose Bovespa stock market index has doubled in the last 12 months. Does the bubble accusation hold water? I don't think so and here are 7 reasons why Brazil is by no means a bubble economy: Exports have held up over the past year thanks to demand from China for Brazil's soya exports and iron ore. This was helped by the the Brazilian government's drive to improve trade links with Asia and Africa. Export diversification, spurred by a more active trade policy and increased focus on "south-south" trade under current president Lula, helped mitigate the decline in demand from OECD (Organization for Economic Co-operation and Development) countries A "sensible" economic framework has been in place since the 1990's. This has included inflation

Trade Radar gets another update

Some of our data sources changed again and it impacted our ability to load fundamental/financial data. In response, we are rolling out a new version of the software: 7.1.24 The data sourcing issues are fixed and some dead links in the Chart menu were removed. So whether you are a registered user or someone engaged in the free trial, head over to our update page and download the latest version. The update page is here:   https://tradingstockalerts.com/software/downloadpatch Contact us if you have questions or identify any new issues.

Interactive Ads - Google one-ups Yahoo again

Google's ( GOOG ) press release describing the expansion of a beta program for what are being called Gadget Ads has again shown that Google is unparalleled at melding technology and advertising to benefit its bottom line. Gadget Ads are mini-web pages or "widgets" that can be embedded within publisher pages. I have written in the past on Yahoo's ( YHOO ) Smart Ads and how, by more precisely targeting site users and adjusting ad content accordingly, they provide a much desired evolution of the banner or display ad format. Though Smart Ads and Gadget Ads are not really the same, I think it is fair to say that Google has seen the challenge of Smart Ads and has chosen to leapfrog Yahoo by rolling out its own update to the display ad format. The evolution of the Gadget Ad -- One of the trends on the Internet over the last year or so involves software developers creating "widgets" which can be hosted within web pages and blogs. Widgets can be pretty much anything