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Strategies & Market Trends : Z Best Place to Talk Stocks -- Ignore unavailable to you. Want to Upgrade?

To: Ron McKinnon who wrote (49635)	10/29/2003 9:25:16 AM
From: DanZ	Read Replies (1) \| Respond to of 53068

I don't follow NTES and usually get burned trying to trade stocks that I don't know anything about. On the surface NTES looks expensive (PE, PS), but they have very high top line growth, albeit from a small level, and are expected to have their first profitable year. The financial statements on Multex are in Renminbi, which I take is another name for the Chinese Yuan currency. My guess is that this stock has been riding the tide of Chinese stocks higher, and I would only trade it if I knew the company well. A big decline like today could turn into long liquidation and margin calls, which could offset any short covering and stifle a rally. I realize that psychology plays a much larger role in the short term direction of stock prices, but I don't like trading stocks if I don't have a clue about their fundamentals. Thanks for the idea, Dabum; I think I'll sit this one out too. Hui is our resident Chinese stock expert. Maybe he'll have an opinion on this stock.