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.
The company reported earnings overnight of $0.49 per share compared to a loss last year and 16 cents ahead of estimates of 33 cents. Revenue were up 33% year over year. The company raised guidance for the fourth quarter.
The stock has been trading in a range since the last report and we are now looking for it to establish a new higher trading range as the information is digested.
We would not chase the stock higher at the open but would look for entry on either a dip toward support at $69 support or on a good close with a new high on good volume.
China stocks are seeing some ‘sell the news’ action so we would not be too quick to chase it.
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.
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