Watch stocks you care about
The single, easiest way to keep track of all the stocks that matter...
Your own personalized stock watchlist!
It's a 100% FREE Motley Fool service...
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 Chinese real estate services company E-House (China) Holdings Limited (NYSE: EJ ) climbed as high as 12% today after Leju Holdings Limited, its wholly owned real estate listings subsidiary, signed a strategic deal with investment holding company Tencent Holdings to develop software and tools.
So what: The stock has rocketed over the past year on excitement over E-House's growth trajectory, and today's announcement only reinforces those good vibes. Specifically, Tencent's popular social networking platforms should offer Leju plenty of opportunity to expand its digital presence and, in turn, drive more transaction-based revenue.
Now what: E-House is naturally extra bullish on the agreement. "Developing and broadening Leju's mobile platform is an integral part of our growth strategy," said E-House CEO Xin Zhou. "Our cooperation with Tencent will extend our consumer reach through Tencent's powerful Weixin platform and other popular services, opening a key channel to disseminate real estate information and facilitate transactions. This marks a new milestone in our O2O e-commerce and mobile strategy development." Of course, with the stock now up more than 300% over the past year and sporting a 100-plus P/E, however, I'd wait for a much wider margin of safety before buying into that bull talk.
More compelling growth picks
Let's face it: Every investor wants to get in on revolutionary ideas before they hit it big. Like buying PC maker Dell in the late 1980s, before the consumer computing boom. Or purchasing stock in e-commerce pioneer Amazon.com in the late 1990s, when it was nothing more than an upstart online bookstore. The problem is, most investors don't understand the key to investing in hyper-growth markets. The real trick is to find a small-cap "pure play" and then watch as it grows in EXPLOSIVE lockstep with its industry. Our expert team of equity analysts has identified one stock that's poised to produce rocket-ship returns with the next $14.4 TRILLION industry. Click here to get the full story in this eye-opening report.