Financial Trading Blog
Stock of the day 23/12/2014 – China Finance Online Co. Ltd
Starting the year at $6.40, the company saw a steady decline in share prices until May, where China Finance’s stocks reached a yearly nadir, slipping to $2.34. However, despite missing analyst forecasts, mid-June saw a 6% growth to $4.66 after the company’s Q1 2014 earnings release. Earnings per share came in at $0.02, with revenue of $23.2 million against estimate of $26.5 million.
Things chugged along at this level until mid-August, when the company launched China’s first independent web-based securities trading platform ‘Zhengquantong’ (which translates to ‘Securities Master’ in English). This saw China Finance’s shares rocket up the charts; August 18th, the day of the reveal, saw a 75% growth in prices to $7.78, a rise that continued until the company’s prices reached its 2014 high of $11.87. Yet the company couldn’t maintain these prices, and a disappointing Q2 release put to bed these 2014 highs for the rest of the year.
Whilst net revenues increased 171% year on year to $20.6 million in Q2, the fact that this figure was $3 million less than the previous quarter spooked investors, and saw a 21% fall in September to $6.88. Since then the company has been unable to reach its 2014 peak, and a rally to $8.43 at the start of December was lost this week, with China Finance seeing a 12% drop in to $5.31 on Monday.
Unfortunately, the Christmas period has meant a lack of forecasts for China Finance. However, with the company beta-testing its ‘iTouGu’ (‘Investment Masters’) service, providing real-time communication between investment advisors and clients, China Finance is constantly pushing forward with innovation in the Chinese securities industry. With a target share price of $8.30, and a propensity for volatile reactions to earnings releases, China Finance is one to watch in this otherwise quiet Christmas week.
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