Our Stock of the Week is 58.com (WUBA). WUBA is based in Beijing China and is often referred to as the Craig’s List of China. It operates an online classified listing platform for merchandise, services, automobiles and real estate.
For the December quarter the company reported earnings of $0.57 per share compared to a loss last year and $0.27 cents ahead of estimates. Revenue were up 41% year over year and have accelerated each of the last four quarters.
The company is unlikely to be impacted by a trade war with China and that is reflected in a very solid chart. The stock has been trading in a range since the last report on March 7 and does not report again until May 24.
Technically the stock keeps hitting resistance around the $85 level but the more often it is tested the higher the odds that it will break through. Overall market conditions are not so hot right now but it is a ‘go to’ name on strong action in China stocks
As always, we would not chase the stock on Monday morning but would look for an entry either on a breakout over the $85 level or on a little volume pullback toward support at $80.
This post is for educational purposes only! This is not advice or a recommendation. We do not give investment advice. Do not act on this post. Do not buy, sell or trade the stocks mentioned herein. We WILL actively trade this stock differently than discussed herein. We will sell into strength, and will buy or sell at any time for any reason. We will actively trade into any unusual activity. At the time of this post, principals, employees and affiliates of Shark Investing, Inc. and/or principals, employees and affiliates of Shark Asset Management, Inc. ("SAMI"), directly or indirectly, controlled investment and/or trading accounts containing positions in WUBA . To accommodate the objectives of these investing and/or trading accounts, the trading in these shares will be contrary to and/or inconsistent with the information contained in this posting.