| Stock (Symbol) | Stock Price | |
SouFun (SFUN) |
$77 |
|
| Data is as of | Expected to Report | Sector |
December 4, 2013 |
2/3 – 2/7 |
Retail & Travel |
| Sharek’s Take | ||
 Owning SouFun (SFUN) has been so fun! We just got the stock August 8th (see Get in on the Fun!) and its already gone from $39 to $77. What’s even better is now I see an even bigger move ahead. This quarter (2013 Q4) no earnings table has impressed me more than SouFun’s. The company crushed estimates last qtr, gave a big boost to profit estimates, and is estimated to grow profits 49% the next three-quarters. ECommerce sales on SFUN’s site have gone from $3.6 billion in ’11 to probably $26 billion in ’13. At 19 times earnings, this stock has huge upside and is one of my top investments for 2014. |
||
| One-Year Chart | ||
 Wow, a P/E of 19. Doesnt’ make sense. The P/E should be 40. Nice Est. LTG of 30% but this company is growing wicked fast right now, my bet is SFUN grows way faster than that. Estimates look great and these could get beat down big time. |
||
| Earnings Table | ||
 69% profit growth on 45% sales growth. The big news is the co. raised 2013’s revenue est. from $543 million to $610 million.The company gave yet another beat down to earnings estimates, and this was the worse beating yet — 30 cents. The prior quarter the company beat by 19 cents, 12 cents the one before that. Annual Profit Estimates surged! Dramatic increases all the way around. The best increases of any stock I follow. Quarterly estimates also leapt higher. Rapid growth is expected until Summer. |
||
| Fair Value | ||
 It’s conceivable SouFun can make $5 a share in 2014 or 2015. A 35 P/E on that is a $175 stock. My 2014/2015 Fair Values are $160/$194. At $77 this stock is an absolute bargain. I think it’s trying to catch up now. |
||
| Ten-Year Chart | ||
 I wish to warn you of two bad things in regards to this stock. First, SFUN is on a parabolic move higher. This swift move has too much angle and can result in a collapse. Second, the stock is Chinese, and regulations aren’t as strict there as they are here. There’s a lot of fraud in China. |
||
| Power Ranking | Bottom Line | |
Growth Portfolio
2 of 25 |
SouFun has the most momentum of any stock I own going into 2014. But enough of the fun, let’s talk business. I feel SFUN will make the biggest jump of any stock I own in 2014, but I cannot trust it to be my largest holding, it but will probably be my 4th largest. SFUN now ranks 2nd of 25 positions in the Growth Portfolio Power Rankings with Facebook on top, as it’s on a roll and is safer than SFUN. In the Aggressive Growth Portfolio Power Rankings, SouFun ranks #1 but this is a concentrated portfolio and I wish to stress there’s too much risk here for individual investors to make it their largest position. | |
Aggressive Growth Portfolio
1 of 11 |
||
