51job Shares Plunged: What You Need to Know

By Cindy Johnson | More Articles
June 7, 2011 | Comments (3)

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Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: 51job (Nasdaq: JOBS ) dropped 15% in intraday trading today after a negative mention in an investment report.

So what: Zacks published a report on mysmartrend.com on the human resource and employment services industry. 51job was criticized for its P/E ratio of 43 times, along with On Assignment (Nasdaq: ASGN ) for its P/E of 69 times, Heidrick & Struggles International (Nasdaq: HSII ) for its P/E of 65 times, Robert Half International (NYSE: RHI ) for its P/E of 46 times, and TrueBlue (NYSE: TBI ) for its P/E of 28 times.

Now what: Disappointing jobs reports and economic news are clouding the outlook for the industry in the United States. 51job focuses on the much stronger Chinese market, however. While a weaker U.S. economy could slow jobs growth in China, investors should think twice before laying off 51job's stock.

Interested in more info on 51job? Add it to your watchlist by clicking here.

The Steve Jobs Betrayal
You may already know that in the final year of his life, Jobs revealed a stunning betrayal — and told his biographer, "I will spend my last dying breath... and every penny of Apple's $40 billion in the bank to right this wrong." What was it that made Jobs so irate — and why could it make a few in-the-know investors some major profits over the coming months and years?

Enter your email address below to find out what made Jobs so enraged!

Fool contributor Cindy Johnson does not own shares of any company named above. Motley Fool newsletter services have recommended buying shares of 51job. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Read/Post Comments (3) | Recommend This Article (5)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment icon found on every comment.

Report this Comment On June 08, 2011, at 12:18 AM, winthrop264 wrote:

When it comes to Chinese stocks its time to throw the baby, the bathwater and the tub as far they can be thrown.
Report this Comment On June 08, 2011, at 12:19 AM, winthrop264 wrote:

Sell first and ask questions later!
Report this Comment On June 13, 2011, at 5:33 PM, tven7 wrote:

another 10% drop today. At what point does this become a compelling buy? Its down 30% from this year highs.

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