| Stock (Symbol) | Stock Price | |
SouFun (SFUN) |
$39 |
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| Data is as of | Expected to Report | Sector |
August 8, 2013 |
11/8 – 11/12 |
Technology |
| Sharek’s Take | ||
 I’m really excited about SouFun (SFUN)! SouFun has a chance to be my next big winner, and I will add it to the Growth Portfolio and Aggressive Growth Portfolio today. The company runs websites that sell real estate, home improvements, and home goods. Here’s the SouFun site, its the leading real estate website in China.SFUN stock looks great to me. The company keeps whipping earnings estimates, and growing profits rapidly. Still, the stock’s P/E is only 15. I feel SFUN is worth 24 times earnings. There’s huge upside here. |
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| One-Year Chart | ||
 I’m so surprised this stock has a P/E of only 15. Chinese Internet stocks are hot too, I bet this stock gets into the eyes of institutional investors. The problem the institutions have is they will have to get in over time. I’ll have clients in today. Estimates look so-so, but SFUN has been crushing estimates. |
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| Earnings Table | ||
 SFUN just announced earnings yesterday. The company beat the street and the stock broke out to a new all-time high on the news. Profits grew 59% on a 48% rise in sales.The company beat the street by 19 cents last quarter and has been on a roll whipping estimates for the last year. This is a big story, that few investors are aware of.Annual Profit Estimates need time to bake. I feel these will rise in the next week, but I don’t want to wait until next week to get in on the fun. Quarterly estimates are not great, but these have already started to increase since yesterday. SFUN will probably beat the street anyway. |
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| Fair Value | ||
 This company went public in 2010. Note the stock had a P/E of 25 in 2010. I think it deserves one now. I still can’t believe this stock has a P/E of only 15. How cheap. There’s huge upside to Fair Value. |
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| Ten-Year Chart | ||
 The stock shot up during the past month. It deserved to. Look at how great profit growth has been each year (bottom). Revenue has gone from $224 mil (2010) to $343 mil (2011), $430 mil (2012) and is expected to hit $569 mil this year. |
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| Power Ranking | Bottom Line | |
Growth Portfolio
4 of 23 |
SouFun has it all. Excellent growth, low P/E, and a solid estimated long term growth rate of 24% per year. There’s huge upside here, but investors need to be cautious because this is a Chinese stock, and those carry more risk. This can’t be a big position in your portfolio, you could get burned. Still, I feel SFUN is my next big winner. SFUN is ranked 4th of 23 positions in the Growth Portfolio Power Rankings. I’ll sell Celgene (CELG) and Baidu (BIDU) in the Aggressive Growth Portfolio to add SFUN, where it will rank 4 of 13 positions. |
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Aggressive Growth Portfolio
4 of 13 |
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