Ninetowns Internet Technology Company Limited. (NASDAQ–NINE)
Closing price January 22, 2010-$1.53
Another China stock for us. NINE has $2.68 per share in cash and a real business, albeit small.
NINE derives a significant portion of its total net revenues from the sale and servicing of iDeclare software packages, Ninetowns’ import/export enterprise software solution. It also has a fledgling on-line grocery business featuring organic/fresh/natural foods.
As of June 30, 2009, NINE had just under $94 million in cash and was slightly profitable. Our valuation is $3.19 per share so it is trading at 48% of our valuation and it trades at 57% of cash.
Revenues are only about $12 million a year, with 70% gross margins.
This is another foreign stock and relatively unknown..
It the stock can get to only trading AT cash value per share, we have a 75% gain.
NINE trades only about 14,000 shares a day, so careful, patient buying is required here..
There are about 35 million fully diluted ADRs outstanding.
About Ninetowns Internet Technology Group Company Limited
Ninetowns (Nasdaq: NINE – News) is a leading provider of online solutions for international trade, with its key services in automating import/export e-filing. Ninetowns has been listed on the NASDAQ Stock Exchange since December 2004 under the symbol “NINE”. More information can be found at http://www.ninetowns.com/English .