Money Matters, Simplified.
A Fool Looks Back
Sat, 11/27/2010 - 21:56 by Rick Aristotle ...
Is the Chinese miracle merely a mirage? This wasn't a good week for a couple of companies in the world's most populous nation. Chinese insurer CNinsure (Nasdaq: CISG) and mobile-services specialist KongZhong (Nasdaq: KONG) were slammed hard after posting uninspiring quarterly results, with the shares suffering double-digit percentage declines on Tuesday.
Focus Media (Nasdaq: FMCN) held up marginally better, but the company behind China's leading network of elevator poster frames and ad-backed television monitors fell by 7% on Tuesday after its own uninspiring report.
I'm not about to concede this match. Like CNinsure's CEO and CFO, who announced plans to buy shares on the open market after the decline, I believe that China's revolution is just getting started. Dry spells happen, and many of China's darling stocks posted healthy results during the same three months.
The Chinese miracle isn't a mirage. This is just the lull of an intermission.
Briefly in the news
And now let's take a quick look at some of the other stories that shaped our week.
- Hewlett-Packard (NYSE: HPQ) posted better-than-expected profitability in its latest quarter. New CEO Leo Apotheker didn't arrive at HP until after the quarter ended, but he's apparently not afraid to shake things up. He plans on ramping up R&D spending, something that his cost-cutting predecessor would have been reluctant to do.
- Netflix (Nasdaq: NFLX) is raising prices on most of its movie plans. It also began offering a "streaming only" service in the United States. Somehow, I don't think any of this will make Gigli any more watchable.
- Apple's (Nasdaq: AAPL) latest software update allows iPhone, iPad, and iPod touch devices to serve as remote controls for Apple TV. Oh, right. I guess you need an Apple TV for that to work.
Until next week, I remain,
Rick Munarriz
© 2010 UCLICK L.L.C.
