Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Why ChinaCache International Holdings Ltd. Shares Soared

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 ChinaCache International Holdings, Ltd.  (NASDAQ: CCIH  )  rose more than 10% during Thursday's intraday trading, then settled to close up around 4% after the company announced it has won a contract to provide additional content delivery network services to China Eastern Airlines.

So what: After becoming China Eastern Airlines' first CDN partner early last year, ChinaCache was already providing services within China. This new contract, however, expands the scope of the agreement to a global scale, which will enable ChinaCache to help "improve the speed, reliability and security of China Eastern Airlines' website for users worldwide."  

Now what: To be sure, this is great news for ChinaCache investors, who endured a 17% plunge after the company reported disappointing quarterly earnings in November. Even so, those numbers were largely due to the effects of a one-time bad debt provision stemming from a contract renewal disagreement with China Mobile, so shouldn't be an issue going forward.

However, it's worth noting that the company still isn't consistently profitable, and shares have rallied more than 60% during the past month alone. As a result, and while ChinaCache could certainly have plenty of upside left, I personally prefer to see how ChinaCache's next quarterly report turns out before making any decisions regarding purchasing the stock at today's levels.

Consider the six impressive growth stocks in this free report
ChinaCache could very well have plenty of growth ahead, but that doesn't mean it's the only great growth stock out there.

To be sure, co-founder David Gardner has proved skeptics wrong, time, and time, and time again, with stock returns like 926%, 2,239%, and 4,371%. In fact, just recently, one of his favorite stocks became a 100-bagger. And he's ready to do it again. You can uncover his scientific approach to crushing the market and his carefully chosen six picks for ultimate growth instantly, because he's making this premium report free for you today. Click here now for access.

Read/Post Comments (1) | 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.

  • Report this Comment On January 16, 2014, at 9:11 PM, enihcam wrote:

    1. I don't know whether Akamai have overseas business, but ChinaCache is the only CDN provider in China that can help US companies to cache their data/apps to China local (e.g. iOS App Store), and more and more worldwide companies are becoming their customers.

    2. If ChinaCache were 'consistently profitable', the stock price would be >40$ already, and it would never be in my investment list now.

Add your comment.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2798669, ~/Articles/ArticleHandler.aspx, 9/1/2015 2:14:06 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...

Steve Symington

Technology and consumer goods specialist for the Fool. Steve looks for responsible businesses which positively shape our lives. Then, he invests accordingly. Enjoy his work? Connect with him on Twitter & Facebook so you don't miss a thing.

Today's Market

updated 4 hours ago Sponsored by:
DOW 16,528.03 -114.98 -0.69%
S&P 500 1,972.18 -16.69 -0.84%
NASD 4,776.51 -51.82 -1.07%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

8/31/2015 3:59 PM
CCIH $7.13 Down -0.18 -2.46%
ChinaCache Interna… CAPS Rating: *