51job Shares Plunged, Then Recovered: What You Need to Know

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: Shares of 51job (Nasdaq: JOBS  ) fell 11% in early trading but closed down just 2% as investors appear to have realized that the long-term growth story remains intact.

So what: Just look at the second-quarter results. Revenue increased 27% to $51.4 million while profit improved to $0.44 a share, and was up 45% when calculated in the company's native currency -- the Chinese yuan.

Now what: So why the selloff? Analysts were looking for $0.50 a share in profit in Q2. So be it. As my Foolish colleague Rick Munarriz wrote earlier today, 51job may not be cheap at 29 times this year's projected earnings, but its shift to end-to-end human-resources products and services should deliver plenty of growth to justify the price. Do you agree? Disagree? Weigh in using the comments box below.

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

Fool contributorTim Beyers is a member of theMotley Fool Rule Breakers stock-picking team. He didn’t own shares in any of the companies mentioned in this article at the time of publication. Check out Tim'sportfolio holdings andFoolish writings, or connect with him on Google+ or Twitter, where he goes by @milehighfool. You can also get his insightsdelivered directly to your RSS reader.

Motley Fool newsletter services have recommended buying shares of 51job. Try any of our Foolish newsletter servicesfree for 30 days. We Fools don't all hold the same opinions, but we all believe thatconsidering a diverse range of insights makes us better investors. The Motley Fool has adisclosure policy.


Read/Post Comments (0) | Recommend This Article (0)

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 Report this Comment icon found on every comment.

Be the first one to comment on this article.

DocumentId: 1534905, ~/Articles/ArticleHandler.aspx, 4/19/2014 5:34:24 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement