4-Star Stocks Poised to Pop: NetEase

Recs

6

Be A Motley Fool Millionaire!

David Gardner's top pick took an epic run of 1,334%! See what he’s recommending that you buy NEXT.

Based on the aggregated intelligence of 140,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, Chinese internet gaming leader NetEase.com (Nasdaq: NTES) has earned a respected four-star ranking.

With that in mind, let's take a closer look at NetEase's business, and see what CAPS investors are saying about the stock right now.

NetEase facts

Headquarters (Founded)

Beijing (1997)

Market Cap

$5.8 billion

Industry

Internet software and services

Trailing-12-Month Revenue

$472.4 million

Management

Founder/CEO William Lei Ding
CFO Onward Choi

Return on Equity (Average, Past 3 Years)

38.5%

Cash / Debt

$909.4 million / $0

Competitors

SINA (Nasdaq: SINA)
Sohu (Nasdaq: SOHU)
Yahoo! (Nasdaq: YHOO)

CAPS Members Bullish on NTES Also Bullish on

Apple

CAPS Members Bearish on NTES Also Bearish on

Baidu (Nasdaq: BIDU)
D.R. Horton (NYSE: DHI)

Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.

On CAPS, 97% of the 1,122 members who have rated NetEase believe the stock will outperform the S&P 500 going forward. These bulls include MavenPicker and All-Star SarahGen, who is ranked in the top 0.2% of our community.

Just last month, MavenPicker motivated Fools to get into the game:

Company offering gaming online and internet portal, successfully operating in China with rapid growth and great opportunity. Reminiscent of Activision Blizzard [ (Nasdaq: ATVI)] at an earlier stage. Excellent financials and prospects as the Chinese population increasingly adopts gaming and internet communication.

In a pitch from three days later, SarahGen also tapped NetEase as an ideal way to ease into battle:

[NetEase] is sitting on the [World of Warcraft] goldmine, and any day now they're going to start seeing the goodies from that. Picked this a little early into the current China selloff, but it will turnaround with the China market in general and quickly outpace those gains with that little cash generator -- [World of Warcraft].

What do you think about NetEase, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. The CAPS community is waiting to hear your opinions. CAPS is 100% free, so get started!  

“Make Big Money With Options” Motley Fool CFO Ollen Douglass recently made over $100,000 buying options on 7 well known stocks. Now we’re committed to turning his small fortune into a massive one! And we want you to join us! Enter your email address to hear more:

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Baidu, NetEase.com, and Sohu.com are Motley Fool Rule Breakers picks. Apple, Activision Blizzard, and Sina are Stock Advisor picks. The Fool's disclosure policy always gets a perfect score.

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 September 23, 2009, at 12:25 PM, Jorn28 wrote:

    NetEase has been kind to me, but Perfect World PWRD) has more than doubled in the time i have had them both and is not mentioned as a competitor.I am holding on to both.

Add your comment.

Compare Brokers

TD AMERITRADE
more info
ShareBuilder
more info
Power E*Trade

more info
Scottrade
more info
Fool Disclosure

DocumentId: 990834, ~/Articles/ArticleHandler.aspx, 12/1/2009 12:05:00 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...

The Must-Read Story on Fool.com
The Public Health-Care Plan's Problem

Related Tickers

11/30/2009 4:00 PM
SINA $45.26 Up +0.48 +1.07%
SINA CAPS Rating: ***
NTES $38.24 Up +0.90 +2.41%
NetEase.com, Inc.… CAPS Rating: ***
SOHU $55.76 Up +1.13 +2.07%
Sohu.com, Inc. CAPS Rating: ****
BIDU $433.74 Down -5.98 -1.36%
Baidu.com, Inc. (A… CAPS Rating: **
YHOO $14.97 Down -0.03 -0.20%
Yahoo!, Inc. CAPS Rating: **
DHI $10.28 Down -0.26 -2.47%
D.R. Horton, Inc. CAPS Rating: *
ATVI $11.39 Down -0.19 -1.67%
Activision Blizzar… CAPS Rating: *****

Community: Investing Wiki

Term Of The Hour

Micro cap: A micro cap is a company with a very small market capitalization, generally between $50 million and $250 million.

Want to learn more or edit this definition?
Click here to read more!