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In addition to following professional banks, anyone can use Motley Fool CAPS to monitor the collective opinions of more than 105,000 investors, many of whom demonstrate better investing insight than published analysts do.
In the past month, enough top-performing CAPS investors have turned bullish on China Finance Online (Nasdaq: JRJC) to upgrade it from its long-held, bottom-dwelling one-star rank to a more admirable two stars. More than 600 investors have weighed in with an opinion on China Finance Online, giving us a peek into the thoughts of many of these investors as to why things look better now.
With China Finance Online (CFO) due to report earnings tonight, several factors have investors feeling more optimistic about the company. These include a significantly lower stock price, a booming Chinese economy, and a recent agreement with China Telecom (NYSE: CHA), which will soon be subjected to a government reorganization (along with peers China Mobile (NYSE: CHL) and China Netcom (NYSE: CN)) to deliver financial information services to China Telecom’s 40 million broadband subscribers. While investors once saw China Finance Online as a company on its deathbed because of its stratospheric valuation, some are now warming up to the idea that significant bottom-line growth really is just around the corner.
But to many investors, the words "bubble" and "China" still go hand in hand. Even as Chinese Web properties such as Sina (Nasdaq: SINA), Sohu.com (Nasdaq: SOHU), and Baidu.com (Nasdaq: BIDU) continue to rock, shares are extremely volatile, and investors see CFO's products as highly exposed if market sentiment were to plummet.
But CFO recently upped its revenue and earnings guidance, even as the Shanghai Stock Market experienced its greatest quarterly decline in 15 years. The feeling that the company can grow even in down cycles has at least a few more investors willing to recommend the company to their CAPS peers. Still, CAPS All-Star players are evenly split, with 102 out of the 210 weighing in still holding a bearish line on CFO.
To see what the very best CAPS analysts are saying now about China Finance Online -- as well as other winning stocks they are picking -- head on over to CAPS and have a look. The community research and resources in CAPS are totally free, unlike analyst opinions reserved for paying clients.
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