InvestIdeas

WUBA tests support

58.com Inc. operates an online marketplace for local merchants and consumers in the People’s Republic of China.

Its online marketplace enables local merchants and consumers to connect, share information, and conduct business.

The company’s online marketplace contains local information in approximately 485 cities in various content categories, including jobs, real estate, used goods, automotive, and yellow pages.

Source: Wealth Blueprint Letter
http://wealthblueprintletter.com/wuba-tests-support/

not vested

58.com

This is the “Craigslist of China,” with two big differences.

First, 58.com Inc. WUBA is a publicly traded company. Next, it cares more about growth. There’s no shortage of that.

Sales grew 33% in the third quarter to $410 million compared with the year before, beating guidance. The company projected 25%-30% sales growth for the fourth quarter.

A lot of 58.com’s revenue comes from real estate listings. So its stock can get hit whenever the government makes noises about cooling off growth in super-hot real estate markets.

58.com is dealing with this by trying to build a presence in smaller cities where real estate markets are less vulnerable to the sharp price gains that attract government attention.

It’s a play on the migration of more consumers online, and the increase in consumption as China’s middle class grows, says Thomson at T. Rowe Price, who cites this as one of his favorite China stocks.

Source: Market Watch