This stock has suffered along with many other Chinese equities, but our expert believes its growth model offers an opportunity to buy at an undervalued level.
SouFun Holdings (SFUN 9)
from Top Stocks under $10
In Chinese stocks, new members should take a look at SouFun Holdings (SFUN), which was a position that I recommended legging into because of the relative volatility of the Chinese real estate and ecommerce website.
And, because of the slightly weaker data from China that has some thinking that momentum is fading, Chinese stocks underperformed the MSCI Emerging Market index, causing SFUN to head lower. However, the company is growing and isn’t currently factoring additional revenue streams, which include new products in the mobile and financial services space.
Although we might get some more volatility as we have seen multiple times in this 5% daily mover, I think the upside potential looms large after this sell off. So If you haven’t added the second leg of this position, I would say go ahead and get in now as the stock has come in some 12% over the week giving an attractive entry point.
Mandeep Rai, Top Stocks under $10, published by Money and Markets, a Division of Weiss Research, Inc., 1-800-291-8545