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 specialist E-House (China) Holdings
So what: E-House shares are flirting with new 52-week lows and have fallen a nasty 55% over the past nine months alone. There doesn't seem to be any specific news driving today's move, but given the global financial fears fueling the broader market sell-off, it's natural that that the highly volatile Chinese penny stock is experiencing some extra pain.
Now what: While it might be tempting to bet on E-House for a short-term bounce, the stock remains a questionable long-term opportunity. Specifically, it's tough to get comfortable with the company's low single-digit returns on equity, P/E of about 30, and worrisome exposure to China's bubbly real estate market. If you're looking for a way to get into the space, U.S. counterparts CB Richard Ellis
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