Why E-House (China) Holdings Limited Popped

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  ) soared as high as 15% on Friday after selling a 15% equity interest in its real estate subsidiary, Leju Holdings, to Internet services company Tencent Holdings for $180 million.

So what: E-House popped earlier this month after signing a development deal with Tencent, and today's news only reinforces the strength of their strategic partnership. In fact, Tencent said it will also subscribe additional shares in Leju's proposed IPO, ensuring that it will be able to maintain its 15% equity stake on a fully diluted basis.

Now what: The transaction is expected to close by the end of the month. "Tencent's investment in Leju demonstrates its recognition of Leju's success in O2O real estate e-commerce. We strongly believe in the opportunities in this vast and growing market," said E-House CEO Xin Zhou. "We also look forward to deepening and widening our strategic cooperation with Tencent in the coming years." Given the stock's red-hot performance and industry-topping price multiples, however, much of that potential might already be baked into the valuation.

More powerful ways to grow
They said it couldn't be done. But David Gardner has proved them 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 (0) | Recommend This Article (1)

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.

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: 2885285, ~/Articles/ArticleHandler.aspx, 10/1/2014 10:55:38 PM

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